TAIPEI (Taiwan News) — Taiwan's drone exports exploded last year, positioning it as a key supplier of China-free or “non-red” drones, according to The Economist.
It reported Thursday that Taiwan launched its drone program in 2022, inspired by Ukraine. Since then, it has ramped up production from 10,000 units in 2024 to over 120,000 last year, with 85,500 exported so far in 2026.
Taiwan targets full non-Chinese components by the end of this year and production of 180,000 annual units by 2028. Domestic demand plays a significant role as the military intends to purchase over 200,000 drones by 2033.
Taiwan has also pledged NT$45 billion (US$1.4 billion) to close gaps in chip and rare-earth magnet production, vital for national defense and high-security markets.
The Economist said Western bans on Chinese drones have fueled demand as the US and its allies learn to live without using parts from China, which dominates 70-80% of global drone production.
The Czech Republic and Poland were reportedly the biggest buyers of Taiwan’s drones, which were most likely resold to see action in Ukraine. This has provided invaluable feedback on use and performance.
The Economist also noted that Taiwanese firms like Kunway Technology export kamikaze quadcopters carrying 8-kilogram bombs at 140 kph and components to Europe, Southeast Asia, India, and are on the US Pentagon shortlist.
Meanwhile, Thunder Tiger plans Ohio motor factories and Polish plants to tap US demand for one-way attack drones. This supports US calls for Taiwan to boost defense spending and prioritize mobile weapons against China.
Though the opposition has blocked defense budgets, and post-Ukraine war oversupply looms, The Economist said Taiwan is leveraging precision manufacturing to become a major player in the market.
“Weaning the West off China’s cheap drones will take time. But Taiwan has made a flying start,” the publication commented.
