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Taiwan drone maker Carbon-Based turns to Asia as military contract pauses

Chloe Liao, Taipei; Vyra Wu, DIGITIMES Asia 0

Credit: DIGITIMES

Carbon-Based Technology recently delivered its "Albatross II" drone to Taiwan's Chung-Shan Institute of Science and Technology (NCSIST) alongside Air Asia Company Limited (AACL). However, due to budget constraints for next year that have halted production, the company's plans for scaling up the advanced drone are temporarily on hold. Despite the setback, Carbon-Based Technology states it has readied production capacity and will now target high-demand commercial markets in Northeast and Southeast Asia.

The "Albatross II," a larger, more capable successor to the "Albatross I," features longer range, integrated strike and reconnaissance capabilities, and advanced radar systems. The domestic drone, developed through a collaborative effort between military and civilian teams, meets rigorous military specifications. NCSIST led development, AACL handled project management, non-destructive testing, and assembly, while Carbon-Based Technology supplied the carbon composite airframe and managed full assembly.

Although the Albatross II has passed extensive tests, its production plans remain in limbo due to funding gaps. Carbon-Based technology emphasizes that the military-civilian partnership to produce domestic drones remains intact and is exploring ways to repurpose its production capacity for commercial clients.

The company's in-house drones are now positioned for Southeast and Northeast Asian markets, where it is in talks with clients on ODM deals. In Northeast Asia, close regulatory and political ties with Taiwan present entry opportunities, while demand in Southeast Asia aligns with US de-sinicization policies, which drive demand for a democratic supply chain.

Since 2007, Carbon-Based Technology has produced parts, molds, airframes, and designs for various NCSIST drones, including the Albatross I, Tengyun, Jianxiang, and Albatross II. While the company will continue prioritizing military-grade drones, it's also ready to adapt downgraded models for commercial needs. Recently, a client in deep-sea fishing expressed interest in using Carbon-Based Technology's drones for marine surveys, hoping to slash fuel costs that typically run into the millions of dollars. Such drones could also be tailored for naval applications.

Carbon-Based Technology notes that adapting military models for commercial use could be cost-effective by adjusting material standards and communication modules. Using carbon fiber composites over alloys offers durability benefits, while plastic injection molding remains popular with competitors like DJI. Lowering material grades could reduce costs, as materials represent roughly 15-20% of drone expenses.

The company added that a drone's utility depends on whether it's viewed as an asset or an expendable tool. Asset drones prioritize reliability, while expendable ones—often used in one-time suicide missions—emphasize cost-efficiency. While China-based DJI's drones have proven effective on the battlefield, Taiwanese manufacturers see opportunities to address remaining gaps, particularly in endurance and range.