TAIPEI (Taiwan News) — Taiwan’s government is cultivating its drone industry to defend against a potential invasion and export to international markets. 

President Lai Ching-te (賴清德) in his 2024 inaugural address pledged to make Taiwan “the Asian hub of UAV supply chains for global democracies,” reported The Economist. His predecessor, Tsai Ing-wen (蔡英文), in 2022 noted the advantage that drones allowed Ukraine in its fight against Russia. 

Former US officials have encouraged Taiwan to develop its drone industry to defend against a potential Chinese attack. They envisioned an "unmanned hellscape" in the Taiwan Strait through a network of thousands of drones and other unmanned systems that would deter an invasion. 

Taiwan has the goal of manufacturing 15,000 Taiwan-made drones a month by 2028. The government has built a research center, granted military procurement contracts, and subsidized companies to develop flight controllers and AI imaging chips.

In addition, Taiwan’s drone industry seeks to enter international markets, capitalizing on distrust of China and aiming to establish a “zero-red” supply chain. The US has banned Chinese drones from its government agencies and armed forces, the report noted. 

However, Taiwan’s biggest problem is scale. Taiwan’s commerce ministry said domestic manufacturers need more international orders to scale production. 

China controls 80% of the international drone market, enabling it to produce drones more cheaply. For example, Coretronic manager Andy Hsin said their Taiwan-made drones cost 25% more than Chinese drones. Another Taiwan drone company, Thunder Tiger, said it plans to manufacture some parts in California.