TAIPEI (Taiwan News) — Taiwan defense contractor Aerospace Industrial Development Corporation (AIDC) announced on Aug. 13 that it plans to set up a factory in Phoenix, Arizona.
According to an AIDC press release published on Aug. 14, the company stated that its US subsidiary will purchase a factory in Arizona to be close to foreign system manufacturers.
AIDC President Ma Wan-june (馬萬鈞) said on Monday (Aug. 19) that the company has long intended to build a factory in the US, according to CNA. He explained that AIDC has had ties to Phoenix for over 20 years, having previously established a joint venture with Honeywell to produce engines for the International Turbine Engine Company (ITEC).
Additionally, Ma explained that the severe material shortages caused by the pandemic in recent years have created a strong demand for a “short supply chain” among customers and manufacturers, particularly in Europe and the US.
Ma added that US customers now prefer a certain percentage of products to be manufactured domestically, which would be more favorable for securing defense-related orders. Regarding the construction schedule, he said AIDC’s US factory is expected to begin production in 2027.
“In the past, we built factories after securing orders. Now we are setting up to compete for orders, which is quite a shift,” he said.
Ma noted that the domestic market for military-standard commercial drones is already quite mature, with small and medium-sized enterprises thriving. The company plans to support domestic manufacturers in mass production and has already received many orders, he reported.