TAIPEI (Taiwan News) — The head of a drone company and the technology officer of another company have been detained on suspicion of using Chinese-made chips and flight control boards in training drones delivered to the Army.
The company is also accused of further attempting to evade procurement requirements by falsifying certificates of origin and removing or obscuring markings on Chinese-made components, the Ciaotou District Prosecutors Office said Tuesday, per SETN.
The investigation began after the Army's 8th Field Army received the drone shipment last month and conducted an inspection that reportedly uncovered the suspected violations. Investigators subsequently searched the company on Aug. 11 and summoned its head, surnamed Chang (張), and a technical supervisor from another company, surnamed Luo (羅), for questioning.
Following questioning, prosecutors asked the court to detain the two men on suspicion of violating the National Security Act by delivering or providing products from China. They also face charges under the Criminal Code for attempted fraud.
The court approved their detention incommunicado, noting that defense procurement involves national security and directly affects the combat capabilities of the armed forces. It added that suppliers must strictly comply with contract requirements and relevant laws and regulations, per SETN.
The domestic drone manufacturer won a bid to supply training drones to the Army's 8th Corps for NT$2.95 million (US$92,558), reportedly offering the lowest price last year. The case is the first in Taiwan involving the procurement of defense drones in which violations of the National Security Act have been alleged, per PTS.
Experts said drone manufacturers are aware that military tenders prohibit the use of China-made components but may still take the risk. Legislators call upon the military to strengthen oversight, rather than waiting until final acceptance to verify the origin of components.
DPP Legislator Wang Ting-yu (王定宇) said, "We cannot allow Chinese-made components and chips to be used in our drones. This is not only related to our acquisition of key spare parts but also to related military security considerations," per PTS.





