After taking office, President Lai Ching-te identified five key industrial chains for development, with the defense sector among them.
Yu-Jiu Wang, Chairman and CEO of Tron Future Tech, highlighted the emergence of new warfare forms driven by the latest industrial revolution, which has accelerated a global arms race. He cited research suggesting that the defense and aerospace markets may outpace the semiconductor industry in growth, though Taiwan's defense sector remains undervalued—a missed opportunity, in his view.
Wang noted that the gap between China's defense industry and those of the US and Russia is narrowing. Due to its lower production costs, China is becoming increasingly competitive, especially in the lower-end product segment.
The Russia-Ukraine war has unexpectedly showcased the military potential of drones, revealing that traditional fighter jets, which can cost billions, are ineffective against these new combat technologies. This has prompted major Western powers to shift their military investments, focusing on strategic industries better suited for future battlefields.
This shift is opening doors for the industry. Historically, the global defense sector has been dominated by large companies, making it challenging for startups like Tron Future Tech to break in. However, the conflict has created new opportunities in the drone market, and the company has gained significant attention from international clients during recent exhibitions abroad.
The company's core strength lies in its proprietary lightweight radar technology, which is integrated into anti-drone systems and low-orbit satellite communication platforms.
Wang also remarked that while global interest in the defense industry is surging, it remains relatively underdeveloped in Taiwan. Whether Taiwan can elevate its defense sector to a world-class strategic industry will depend on the ability of local companies to expand beyond Taiwan and carve out a unique competitive edge in the global defense and aerospace markets.
