ENE Technology has announced strategic investments in two Taiwanese drone manufacturers, Hsuan Yuan Tech Co. (HY Tech) and Aeroprobing Inc., aiming to advance systematized products and proprietary-brand unmanned aerial vehicles (UAVs). The move signifies the company's transformation from embedded controller expertise to broader system integration and diversified UAV services.
Taiwanese startup Aegiverse is carving out a strategic role in the island's defense and aerospace supply chains by developing high-precision inertial navigation systems (INS) powered by its proprietary fiber optic gyroscope (FOG) technology.
Rapidtek Technologies announced that Asterforge, its joint venture established in 2024 with Singapore's satellite-tech startup NuSpace, has successfully entered international markets and secured overseas satellite integration and testing service orders, providing key support for multiple low-Earth-orbit (LEO) constellation projects. Headquartered in Singapore, Asterforge focuses on satellite ODM, OEM, and Assembly, Integration, and Test (AIT) services to drive innovation and applications in small-satellite technologies.
The latest National Defense Authorization Act (NDAA) has now been confirmed by the US House and Senate. The bill contains extensive Taiwan-related provisions that require the US Department of Defense to complete by March 2026, including a joint development and production plan with Taiwan for unmanned systems and counter-unmanned systems.
To avoid getting entangled in US-China relations, many industries have adopted China-free supply chains, often referred to as "non-red" supply chains, especially in sectors involving defense and national security. As drones gain broader applications, Taiwanese companies are seizing opportunities in the rising importance of the optical industry.
The Executive Yuan in Taiwan has proposed a NT$1.25 trillion (US$40 billion) special defense budget aimed at enhancing seven critical areas, including air defense, electronic warfare, and cybersecurity. A central focus of the "Taiwan Shield" initiative is to develop a multi-layered air defense system spanning high, medium, and low altitudes to improve national security.
Taiwanese manufacturers are positioning themselves for defense-sector expansion as the government prepares a NT$1.25 trillion (approx. US$40 billion) special budget to accelerate domestic weapons production and strengthen supply chain autonomy. The initiative aligns with a global surge in military spending and is expected to create new opportunities for unmanned systems, aerospace maintenance, and satellite communications.
Teledyne FLIR Defense won a US$42.5 million order for Rogue 1 loitering munitions from the US Marine Corps, while Croatian drone maker Orqa is expanding capacity to meet rising Pentagon demand for NDAA-compliant systems.
FarEasTone (FET) has taken a major step in exporting its telemedicine capabilities abroad, announcing on Dec. 8 that it has signed a memorandum of understanding with Taiwan's Teleport Access Services and Indonesia's state-owned satellite operator Telkomsat. The three parties will jointly develop satellite-based telemedicine services aimed at remote and underserved communities across Indonesia's far-flung islands.
Taiwan and the US plan to procure nearly half a million military drones over the next two years, a rapid buildup that is driving manufacturers to expand production, localize components, and secure testing facilities. The surge in demand is emerging as a key test of whether the drone supply chain can scale fast enough to support large defense programs.
Thunder Tiger expects strong demand over the next two years as it prepares to compete for drone procurement programs in Taiwan and the US. General Manager Gene Su said the company will bid on Taiwan's plan to purchase nearly 50,000 military drones in 2026 and 2027 and will also pursue a US Department of Defense initiative worth up to US$1 billion. Su said Thunder Tiger has sufficient capacity to support both markets.
More coverage
