TAIPEI (Taiwan News) — Cabinet Spokesperson Michelle Lee (李慧芝) warned Wednesday that the KMT proposal to freeze funding for the Cabinet's drone industry development program in the 2026 budget could undermine Taiwan's participation in the “non-red” supply chain.
The six-year program, with a budget of NT$44.2 billion (US$1.37 billion) from 2025 to 2030, aims to expand the domestic drone market through government procurement while strengthening Taiwan's international competitiveness, per Liberty Times. The plan includes partnerships with overseas research institutions, developing Chiayi County into Taiwan's drone industry hub, and establishing specialized drone laboratories in Tainan.
Taichung Mayor Lu Shiow-yen (盧秀燕) has urged the Cabinet to expand the program to include central Taiwan, citing the region's established drone supply chain, per Liberty Times. Taichung Deputy Mayor Cheng Chao-hsin (鄭照新) also called for a dedicated development plan for the central Taiwan drone industry and the designation of drone testing zones in the region.
Lee said freezing the program's funding would jeopardize Taiwan's efforts to participate in the non-red supply chain, per CNA. She said search-and-rescue and law enforcement operations depend heavily on drone equipment and warned that freezing the funding could hinder those public services.
Lee said the Cabinet prepares and implements budgets in accordance with the law and urged lawmakers to expedite their review of the central government budget.
The KMT argued the program violated procedural requirements by allocating funding before completing legislative oversight, per Liberty Times. Citing its proposed drone industry development bill, the KMT called on the Cabinet to suspend its drone development programs and revise them to align with the bill, which is still under legislative review.
The KMT initially proposed cutting the program's budget before revising its proposal to freeze the funding instead, per Tai Sounds. Lee responded that the program includes projects carried over from the previous fiscal year that had already completed legislative review, per Liberty Times.
Lee also accused some opposition lawmakers of delaying review of the budget before criticizing the government for proceeding with the program. Citing recent media reports alleging the KMT was obstructing Taiwan's drone industry at the behest of the CCP, DPP Legislator Lin Chu-yin (林楚茵) argued that the opposition's move to target civilian drone funding, after previously cutting military drone-related budgets, lent credibility to those allegations, per UDN.
Annvolt General Manager Li Tung-sheng (李東昇) said companies had already invested heavily in anticipation of the program, per UDN. He urged lawmakers not to freeze the budget or otherwise hinder the industry's development.
AVIX founder Chang Cheng-jung (張成榮) said the global drone market continues to expand and warned that delaying government investment could have long-term consequences for Taiwan's competitiveness, per Liberty Times. He said that while drone manufacturing capacity is becoming increasingly comparable worldwide, operational experience will be the decisive factor in securing overseas sales.
