TAIPEI (Taiwan News) — Taiwan’s Legislative Yuan on Friday blocked a proposed draft act aimed at developing the drone industry.
The proposal was introduced by Democratic Progressive Party lawmaker Chung Chia-pin (鍾佳濱) and sought to establish a legal framework and budget mechanism to support the nation's development of unmanned aerial systems and other unmanned vehicle technologies.
Lawmakers from the opposition Kuomintang and Taiwan People’s Party voted to send the draft back to the procedural committee, preventing it from advancing to review, according to CNA.
Supporters said the act was designed to address funding gaps created after recent cuts to special defense-related budget proposals. The plan would leverage Taiwan’s strengths in small- and medium-sized manufacturing, as well as its semiconductor and artificial intelligence industries, proposing a five-year budget of NT$550 billion (US$17.5 billion) to develop the sector, according to CNA.
Citing financial media estimates, Chung said the global unmanned vehicle industry is expected to reach NT$7.9 trillion by 2027. He added that major US companies have recently been visiting Taiwan to seek supply chain partnerships with local drone manufacturers.
However, he said development in Taiwan remains constrained by limited testing environments, including restrictions on airspace and maritime trials, as well as regulatory barriers. The proposed bill, he said, was intended to address these issues by supporting the creation of more comprehensive testing and development facilities.
Chung noted that Taiwan has 164 companies in northern Taiwan, 57 in central Taiwan, and 45 in southern Taiwan involved in unmanned vehicle development, suggesting the country has the potential to integrate into the global supply chain. He said this would depend on whether Taiwan can secure a position in the supply chain within the next three to five years and strengthen capabilities in full-system research, design, and manufacturing.
Opposition lawmakers from the TPP criticized the proposal, arguing that it lacked clear limits on special budget spending and raised concerns over fiscal discipline and procurement oversight. The TPP said the bill’s proposed five-year special budget would effectively bypass restrictions under the Budget Act on government borrowing limits, and added that it did not set a spending cap, which they said could lead to unchecked spending, according to UDN Money.