Taiwan's government is intensifying its efforts to develop the domestic drone industry, designating it as one of the five key pillars in the nation's trusted supply chain initiative. Minister of Economic Affairs J.W. Kuo recently announced that the National Development Council (NDC) will allocate funds from the National Development Fund to support the drone sector, aiming to achieve a production value of NT$30 billion (approximately USD 950 million) by 2028.
The Taiwanese drone industry is gaining momentum as a vital partner for the United States, especially amid heightened U.S. demands for decoupling from China. With Chinese brands currently dominating 70% of the global drone market, the U.S. is keen to diversify its drone supply chain, positioning Taiwan as a crucial ally in this effort.
International collaboration is already underway. During the U.S.-Taiwan Defense Industry Forum in June 2024, nearly 30 American defense contractors, including those from the drone sector, visited Taiwan. Betsy Shieh, Head of the Commercial Section at the American Institute in Taiwan (AIT), confirmed that another delegation of 26 U.S. drone companies will visit Taiwan in September, focusing on partnerships with Taiwanese suppliers in counter-drone systems.
As the industry grows, Taiwan is preparing to showcase its capabilities. The first dedicated drone exhibition is scheduled for October 2024 in Taipei's Nangang district. While the inaugural event may be modest, it's expected to evolve into a fully independent expo by 2026, reflecting the sector's increasing prominence.
Currently, Space Chiayi serves as the main hub for Taiwan's drone development. A recent drone expo held there announced the formation of a Taiwan drone supply chain alliance, aiming to attract more upstream and downstream industry players. Reports indicate that over 30 companies have already joined the alliance, pooling resources to capitalize on global opportunities in the decoupled supply chain.
This strategic focus on the drone industry demonstrates Taiwan's commitment to innovation and its potential to become a significant player in the global market. As geopolitical tensions reshape supply chains, Taiwan's drone sector is well-positioned to meet growing international demand and contribute to the nation's economic growth.
