TAIPEI (Taiwan News) — Taiwan’s drone sector is at risk of being left behind as the US expands its drone industry, according to a report by the Taipei-based Research Institute for Democracy, Society and Emerging Technology (DSET).
US President Donald Trump issued two executive orders in June aiming to bolster American leadership in drone technology, enhance national airspace security and reduce dependency on Chinese drones and their components. The orders also prioritize federal agencies’ and the military’s procurement of domestically manufactured drones.
DSET’s National Security Research Group Deputy Director Tiunn Hong-lun (張紘綸) stressed that without formal co-production agreements or inclusion in US drone development and defense cooperation, Taiwan could be excluded when support is most needed, Nikkei Asia reported on Monday.
He said supporting Taiwan’s domestic UAV manufacturing capabilities is crucial, since importing drones and critical components from abroad could become impossible in a Taiwan Strait conflict. Democratic allies, he added, should prioritize strengthening Taiwan’s self-sufficient UAV supply chain.
The institute recommends the US help Taiwan obtain cybersecurity and supply-chain security certifications, paving the way for future procurement of Taiwanese UAV products; establish a final assembly and check-out facility in Taiwan for co-developed military-grade or modular UAV platforms; and implement bilateral certification protocols and joint research initiatives to cement long-term cooperation.
Taiwan is advancing its drone capabilities by focusing on low-cost, modular and autonomous UAVs. In May, Taiwan’s government announced a procurement plan for 47,000 drones over the next four years and set a target of producing 180,000 drones annually by 2028, aiming for an estimated production value of NT$27.74 billion (US$937.5 million).
Taiwan’s UAV industry nearly doubled in value from NT$2.8 billion in 2023 to NT$5 billion last year, and exports surged from 290 units in H2 2023 to 3,473 units last year. The momentum continued into Q1 2025, with 3,426 units exported, though annual production capacity remains at 8,000–10,000 units, far below the 2028 target, the report said.
DSET policy analyst Cathy Fang (方怡然) highlighted Taiwan’s potential to help democratic allies reduce dependence on Chinese-made drones and components, noting Taiwan’s strengths in semiconductors and electronics position it to contribute to a China-free UAV supply chain.
