Taiwan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in taiwan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Highly Automated and Autonomous Systems
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Overview

Taiwan’s new administration, inaugurated in May 2024, has prioritized five key industries—semiconductors, AI, defense, security and surveillance, and next-generation communications—to drive future growth and strengthen ties with global partners.

As part of its push to enhance asymmetric capabilities and expand domestic defense production, Taiwan’s Ministry of National Defense announced in July 2025 plans to procure nearly 50,000 drones over the next two years. The Coast Guard is also planning to acquire a second generation of drones and uncrewed surface vehicles.

Military Procurement

Military procurement in Taiwan is governed by Article 104 of the Government Procurement Law (GPL), which outlines three types of procurement: domestic tenders, Foreign Military Sales (FMS), and Direct Commercial Sales (DCS). U.S. firms may sell through FMS—handled by the U.S. Department of Defense—or DCS, which involves direct sales to Taiwanese entities with U.S. government approval, especially for dual-use technologies.

All military purchases over NT$ 30 million ($1,023,891) locally or NT$ 18.5 million ($631,399) from abroad must by administered by Taiwan’s Ministry of National Defense (MND). Exceptions to the GPL apply in cases involving national security, emergencies, sole-source suppliers, or wartime scenarios.

U.S. companies may also receive support through the U.S. Advocacy Center, which coordinates interagency efforts to help U.S. exporters win foreign government contracts. Support can include official endorsements from AIT or U.S. government entities.

As part of its effort to strengthen asymmetric warfare capabilities, Taiwan’s MND has announced a two-phase procurement plan to acquire a total of 48,750 drones through its Armaments Bureau—11,270 units in 2026 and 37,480 in 2027.

The drones are categorized into five types (Type A–E), including both multi-rotor vertical take-off and landing (VTOL) and fixed-wing models. Flight endurance requirements range from 7 minutes to 2.5 hours, depending on the model and payload.

According to MND’s official tender notice, all drones must be domestically manufactured and assembled in Taiwan, and Chinese-made components are strictly prohibited.

Drone Categories and Specifications Requirements

  • Type A (Multi-Rotor VTOL)
    Procurement: 7,500 units in 2026, 26,500 in 2027
    Specs: Payload capacity over 2.5 kg; control and transmission range >6 km; flight time over 30 minutes when unloaded

  • Type B (Multi-Rotor VTOL)
    Procurement: 1,100 units in 2026, 3,200 in 2027
    Specs: Range >25 km; flight endurance of 60+ minutes with optical and 10 kg payload

  • Type C (Fixed-Wing, Catapult-Launched)
    Procurement: 970 units in 2026, 2,980 in 2027
    Specs: Modular design; data transmission range >90 km; 2+ hour flight time with 10 kg payload and optical systems; range >180 km

  • Type D (Fixed-Wing, Catapult-Launched)
    Procurement: 1,350 units in 2026, 4,450 in 2027
    Specs: Range >30 km; 30-minute flight time with 2.5 kg payload

  •  Type E (VTOL Fixed-Wing)
    Procurement: 350 units each year
    Specs: Operates in Beaufort scale 5 wind; range >100 km; flight time of 2.5 hours with optical payload; average speed >80 km/h

This procurement plan highlights Taiwan’s commitment to boosting its indigenous defense capabilities and developing a robust domestic drone ecosystem.

Local Partners

In addition to working with local distributors and agents, U.S. companies interested in pursuing Taiwan’s upcoming UAS procurement projects may consider collaborating with local system integrators (SIs) to meet the domestic production requirements.

Taiwan is well known for its strength in manufacturing and scaling hardware production, while software and AI technologies present areas with strong potential for deeper collaboration with U.S. partners who bring advanced capabilities in these fields.

Due to the limited domestic market size and the sensitivity surrounding the defense sector, most Taiwanese drone manufacturers have historically focused on commercial applications. However, inspired by the use of commercial-grade drones in the war in Ukraine and the rising demand for defense applications, Taiwan’s government launched a new initiative to accelerate domestic UAS development. On November 1, 2022, the Ministry of Economic Affairs (MOEA) announced a pilot program to develop commercial-grade UAVs and UAS platforms for defense use. A cross-agency task force—comprising the National Science and Technology Council, Ministry of National Defense (MND), MOEA, and the National Chung-Shan Institute of Science and Technology (NCSIST)—was established to oversee the program, which focuses on five drone categories.

In December 2022, the task force selected nine domestic manufacturers to develop prototypes under the following categories:

  • Miniature UAVs: Thunder Tiger Group, GEOSAT Aerospace & Technology, and CIRC.

  • Surveillance UAVs: MITAC, CIRC, and Qisda.

  • Targeted Acquisition Capabilities UAVs: MITAC and Strong Engineering Consulting Co., Ltd.

  • Land-based Reconnaissance UAVs: Evergreen Aviation Technologies Corporation and

  • GEOSAT Aerospace & Technology

  • Shipborne UAVs: FairTech Corporation and Taiwan UAV Corporation

On March 21, 2023, MOEA announced R&D funding support for these companies, with prototypes expected by July 2023 and mass production targeted for 2024.

In parallel, NCSIST launched an initiative to support the local development of radar technologies for UAS applications, selecting four companies to co-build systems through defense technology transfer:

  • Active Radar UAS: Tron Future Tech,and Raser Technology Co., Ltd.

  • Passive Radar UAS: Jet Hand Technology Co., Ltd. and Iwavenology Co., Ltd.

  • Drone-interference Radar UAS: Jet Hand Technology Co., Ltd. and Tron Future Tech.

To further drive industry coordination, the MOEA launched the Taiwan Excellence Drone Industry Business Opportunities Alliance (TEDIBOA) in September 2024, led by the Aerospace Industrial Development Corporation (AIDC)—a state-owned aerospace firm. TEDIBOA now includes over 200 member companies and is co-led by seven major firms, including MiTAC Advanced Technology, Thunder Tiger, Coretronic, Air Asia, EGAT, Qisda and GEOSAT Aerospace.

Taiwan’s drone industry is actively seeking partnerships with U.S. technology companies through licensing, co-design, and co-production arrangements. Priority technology areas include infrared cameras, high-frequency, long-range communication modules, military-grade radio transmission technology, drone flight control software. These developments present strong opportunities for U.S. firms to support Taiwan’s defense modernization efforts while forming meaningful partnerships in a strategically important region.

Upcoming UxS Exhibitions

Taiwan does not currently host a dedicated robotics or drone-focused trade show. However, the Taipei Aerospace and Defense Technology Exhibition (TADTE)—held in September 2025 in Taipei—is Taiwan’s only biannual trade event dedicated to military and civilian aerospace products and technologies. The date for the next edition, TADTE 2027, has yet to be announced.

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