Microcontroller (MCU) maker ENE Technology has officially entered the drone industry, partnering with Taiwan's HY Tech, Aeroprobing, and Egis to integrate communications, vision modules, and AI image processing and computing technologies. The company also established a new business unit staffed with drone experts to compete in the customized drone IC market.
The space industry is undergoing a profound transformation. What was once the domain of government agencies has become a strategic battleground. Commercial innovation, military priorities, and economic competition now converge beyond Earth's atmosphere.
Taiwan's integrated circuit design houses are accelerating shipments to the global drone market as US trade restrictions on Chinese manufacturers reshape international supply chains. The policy shift is forcing a realignment toward non-Chinese sourcing, enabling Taiwanese chipmakers to transition from low-volume defense contracts to large-scale commercial and consumer drone production.
AST SpaceMobile has launched its largest satellite, BlueBird 6, marking a key step toward providing 4G and 5G broadband directly to standard smartphones worldwide and accelerating the company's plans to build a global space-based cellular network, according to Bloomberg, Business Wire, and Investor's Business Daily.
Yao Sheng Electronic said it has secured a major printed circuit board assembly order from a US drone startup, underscoring progress in the Taiwanese manufacturer's push to move beyond lower-margin businesses and deepen its exposure to AI, semiconductor, and medical markets.
China has maintained a clear lead over the US in drone-related technology patents since 2016, highlighting a widening technology gap as Taiwan seeks to expand its domestic drone industry and reduce reliance on China-centric supply chains. The divergence underscores the scale of the challenge facing Taiwan at a time when governments worldwide are accelerating procurement of unmanned systems and reassessing supply chain security.
Unmanned aircraft are becoming central to modern military operations, driving a surge in government procurement that is reshaping Taiwan's drone industry. The US, Japan, and Taiwan have all announced large-scale drone purchases. But the rapid expansion is straining supply chains, production capacity, and delivery timelines. Industry executives say closer coordination and clearer division of labor across suppliers will be critical for companies seeking to secure contracts and scale output.
Japan's flagship heavy-lift rocket, the H3, suffered another setback on Sunday after its eighth flight failed, dealing a blow to the country's ambitions to strengthen its independent space capabilities.
Interest in drones and robotics has continued to build across markets in 2025, yet not all automotive electronics manufacturers are convinced the moment has arrived.
Aerospace Industrial Development Corp. said it is on track to begin limited production at its first US manufacturing site by the end of 2025. The milestone positions the Taiwanese aerospace supplier to benefit from a global reordering of supply chains and closer alignment with US defense and commercial customers.
Chinese suppliers have significantly increased the prices of drone components and dual-use technology exported to Russia, according to trade data that highlights Moscow's growing vulnerability as the conflict in Ukraine continues. Analysis of figures from China's General Administration of Customs indicates that costs for military-grade hardware rose sharply through October 2025, even as export volumes in several categories declined.
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