TAIPEI (Taiwan News) — China has sanctioned US drone manufacturer Skydio, forcing the company to seek alternative suppliers.
On Oct. 11, Chinese firms were banned from supplying parts or doing business with Skydio and other American drone firms, Financial Times reported. Skydio had recently been awarded a contract by Taiwan’s National Fire Agency. Beijing imposed the ban in retaliation for the US’ proposed sale of kamikaze drones to Taiwan.
Chinese authorities visited Skydio’s suppliers and ordered them to cut off ties according to a person familiar with the matter. The company is now engaging with companies in Asia, including in Taiwan to find solutions. Skydio has also contacted Taiwan’s Vice President Hsiao Bi-khim (蕭美琴), per Financial Times.
US Congress is mulling legislation banning drones made by China’s DJI. “We suspect Skydio was targeted by Beijing because it is likely seen as a competitor to DJI,” a US official said. “If there is a silver lining, we can use this episode to accelerate our work to diversify drone supply chains away from . . . China.”
Taiwan signed a Letter of Offer and Acceptance (LOA) at the end of September for nearly 1000 Switchblade 300 and ALTIUS 600M-V drones, according to Bloomberg. The final step is for both sides to finalize formal contracts detailing quantities, prices, and delivery dates.
The US approved the potential sale in June for US$360.2 million (NT$11.53 billion). The Legislative Yuan allocated funds for the drones on Aug. 30. Delivery of the weapons is expected to span from 2024-2026.
In early September, the Army said it would purchase 685 Switchblade 300 loitering munition systems and 291 ALTIUS 600M-V UAVs from the US.
