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Taiwan Drone Systems

U.S. companies specializing in drone systems, chips, modules, components, and artificial intelligence (AI) integration software have a critical opportunity to collaborate with Taiwan’s supply chains. 

Under President Lai Ching-te, who assumed office in May 2024, Taiwan has prioritized the development of five key industries—semiconductors, AI, military, security and surveillance, and next-generation communications—as pillars of Taiwan’s future growth. The initiative aims to leverage shifting geopolitical trends to secure Taiwan’s role in global supply chains and strengthen collaboration with like-minded allies and partners.

Focus on Military and Drone Supply Chains

Taiwan is aggressively developing its defense sector, particularly indigenous aircraft, shipbuilding, and a robust drone ecosystem. The administration aims to scale up monthly drone production to 15,000 units and an industrial output value of NT$30 billion ($935 million) by 2028—a tenfold growth over current levels.

Key Initiatives Supporting Taiwan’s Drone Industry

  1. Taiwan Excellence Drone Industry Business Opportunities Alliance (TEDIBOA)
  • Launched in September 2024 by the Ministry of Economic Affairs (MOEA), the Alliance, led by Aerospace Industrial Development Corp. (AIDC), includes over 100 members. AIDC, a state-owned aerospace company, co-leads the initiative with seven major companies, including Mitac Advance Technology, Thunder Tiger, Coretronic, and Geosat Aerospace.
  • The alliance aims to strengthen Taiwan’s drone supply chain with a focus on fostering innovation and collaboration.
  1. Subsidy Program for Key Technologies
  • Starting in 2025, MOEA will allocate NT$110 million (approximately $3.4 million) to support two key technologies: AI Image Chip Modules and Low-Cost Flight Control Boards.
  • Proposals must focus on domestic chip development or innovative applications of external chips and include system verification plans.
  • Technologies must meet international standards, ensure cybersecurity, and demonstrate mass production capabilities.

Opportunities for U.S. Collaboration

Taiwan’s focus on building a drone supply chain that doesn’t include China presents opportunities for U.S. drone companies to collaborate with Taiwan-based industries and research institutes in this security-sensitive sector. 

For more information, please contact: Madison Yao, Commercial Specialist, Madison.Yao@trade.gov or connect with your local U.S. Commercial Service office in the United States to schedule an appointment for a consultation.