Global demand for military and aerospace electronics has surged since 2024, driven by escalating geopolitical tensions, increased defense spending, and rapid progress in unmanned vehicles, battlefield sensing, and satellite communications technologies. Western markets are accelerating upgrades to cross-domain combat architectures, fueling requirements for rugged computing platforms, edge AI computers, and long-lifecycle industrial control systems.
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.
The US and Taiwan plan to accelerate military drone cooperation in 2026 as Washington advances a large procurement program and Congress moves forward with legislation calling for joint development. The efforts are expected to create opportunities for Taiwanese manufacturers in key technologies, supply chains, and overseas markets, according to industry executives.
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.
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