CONNECT WITH US

Taiwan's drone sector gains momentum, but supply chain gaps remain

Chloe Liao, Taipei; Vyra Wu, DIGITIMES Asia 0

Credit: DIGITIMES

Interest in the drone industry has surged to new heights. Following the 2024 Taipei International Electronics Show (TAITRONICS) and AIoT Taiwan, which debuted the "Drone Taiwan" pavilion, Computex 2025 is set to introduce a dedicated drone section. 24 local companies, spanning the drone and key components supply chain, will showcase Taiwan's research and manufacturing capabilities.

Key participants include Coretronic and Taiwan UAV, which secured military contracts from the Ministry of Defense, alongside Thunder Tiger, Taiwan Swarm Innovation, FairTech, 7A Drones, Hang Jian, and Avix.

Space Chiayi, promoting the drone sector for two years, has expanded to include over 100 suppliers. The upcoming Minxiong Aerospace and Drone Park, featuring a testing base and runway, aims to accelerate international collaborations, particularly with the US and NATO allies. Since the Russia-Ukraine conflict has strained the global drone supply chain, Taiwan has made strides in optics, flight control, communications, materials, and batteries.

Coretronic noted that while 90% of key components are now sourced domestically, it still relies on Qualcomm chips, adding pressure on costs. The company expressed hopes for a more comprehensive supply chain in Taiwan, enabling locally made drones to offer not only safety and reliability but also competitive pricing.

Some Taiwanese electronics manufacturers remain cautious about engaging with the drone sector due to business ties with China, industry insiders revealed. Many prefer to operate quietly or avoid involvement altogether.

Geosat urged Taiwan's major electronics firms, including Foxconn, to step up support for the drone industry.

In addition to Coretronic and Taiwan UAV, which displayed military contract-winning products, Thunder Tiger showcased a one-time-use suicide FPV drone, previously featured at a US military expo. Thunder Tiger reported growing interest from European and US clients, particularly as the drone is now widely used in the Ukraine conflict.

Despite the sector's momentum, industry leaders stressed the need for substantive progress. Taiwan's efforts to build a self-sufficient drone supply chain remain behind both domestic and global demand. Some key components still need to be sourced from abroad, including high-cost US and European parts, as companies aim to "de-Sinicize" their supply chains.

Achieving full autonomy will require greater cross-sector collaboration, and the industry hopes the 2025 exhibitions will strengthen links with the semiconductor and ICT sectors.