TAIPEI (Taiwan News) — Aerospace Industrial Development Corp. will ramp up its R&D and production capacity as it eyes an expanded role in Taiwan’s military procurement, CNA reported.
Taiwan’s defense budget is set to reach NT$949.5 billion (US$30.6 billion) this year, surpassing 3% of GDP for the first time, with legislative review expected to be completed by June. Spending will focus on long-range precision missiles, air defense systems, drones, and AI-assisted technologies.
The government also plans to allocate NT$1.25 trillion for special defense procurement between this year and 2033. The proposal entered legislative review in March after being blocked 10 times by opposition lawmakers. The budget includes the purchase of over 200,000 drones and more than 1,000 unmanned surface vessels to enhance asymmetric warfare capabilities.
AIDC Vice President Chin Huai-sheng (金懷生) said the company has developed an anti-drone system featuring a laser hard-kill capability that integrates detection and strike functions. The system can be deployed for military applications as well as security at large-scale events.
Chin said AIDC is expanding its global presence through partnerships. Since December, the company has worked with US-based Vantor Technologies to integrate its Raptor Guide solution, enabling drones to navigate and position accurately without GPS. In September, US defense firm Shield AI also authorized AIDC to repair its V-BAT UAVs.
Additionally, the company has partnered with domestic drone maker Thunder Tiger to develop the T-400 helicopter drone, which can be used for reconnaissance, logistics transport, and equipment inspection. Thunder Tiger leads the design, manufacturing, and assembly, while AIDC focuses on airframe structural analysis, vibration reduction, and thermal management.
AIDC Chair Tsao Chin-ping (曹進平) said the company participated in the JEC World exhibition in Paris and Xponential Europe in Germany in March to showcase its drone products, thermoplastic composites, and aircraft components.
In addition to its UAV business, AIDC reported that revenue from civil aircraft component manufacturing reached NT$17.3 billion last year, marking six straight years of growth. Orders mainly came from Boeing, Airbus, and Bombardier.
Boeing has forecast global demand for up to 43,600 new civil aircraft by 2044, which AIDC said could provide about 20 years of production demand.
