TAIPEI (Taiwan News) — The Ministry of Economic Affairs (MOEA) signed a memorandum of cooperation with the Arizona‑Taiwan Trade and Investment Office on Monday (Sept 2.), calling for more drone and semiconductor exchanges.

According to an Industrial Development Administration (IDA) press release on Tuesday (Sept. 3), Arizona Commerce Authority (ACA) President and CEO Sandra Watson led the delegation. The cooperation aims to enhance drone and technology supply chains between Taiwan and Arizona, per CNA.

IDA Deputy Director General Chen Pei-li (陳佩利) said military drones have gained attention due to the Russo-Ukrainian War, while commercial drones in communications, transportation, and disaster relief operations are increasingly valued. Currently, China’s DJI dominates global drone production, with Chinese drones holding 60-70% of the market, he explained.

For national security reasons, Taiwan and the US should strive to create a non-red supply chain for drones, Chen added.

In terms of policy resources, Chen said the IDA provides subsidies for the development of key drone modules, such as payload, flight control, and AI image recognition. The goal is to enhance Taiwan’s position in the global economy and promote it as a major player in the drone supply chain in Asia, he added.

Watson said the delegation will visit the Industrial Technology Research Institute (ITRI) and National Yang Ming Chiao Tung University (NYCU). She said she looks forward to cooperating with Taiwan on drones and semiconductor technologies.