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Nov 4
Why defense's blue ocean is no smooth sailing for automakers
Although the defense market has emerged as a new blue ocean for the auto industry, entering it is far from smooth sailing. The main concern remains the national security sensitivities inherent in defense work. Amid international rivalry, automotive supply chains moving into defense can easily become targets, raising the risk that defense gains could shake companies' core automotive businesses. In addition, small, customized defense orders may offer limited profit margins, posing another concern for automakers.
Ukrainian defense tech company UFORCE, creator of the Magura unmanned surface vessel credited with disabling or sinking 19 Russian warships in the Black Sea and emerging as a primary threat to Russian naval operations, is actively forging ties with Taiwanese suppliers. Ukraine's real-world combat validation is positioned to act as a launchpad for Taiwanese manufacturers entering the global defense sector.
The Research Institute for Democracy, Society and Emerging Technology (DSET) released a report on November 4 at the 2026 Taiwan Marine Tech & Unmanned Robotics Expo (MATURE Taiwan), examining Taiwan's unmanned boat industry and international cooperation. Experts from Ukraine and the US urged Taiwan and its allies to connect technology networks and move faster.
Taiwan-based IC design house ELAN Microelectronics has announced that a joint proposal submitted with Thunder Tiger and Gallopwave—titled the "Domestic AI Smart Dual-Use Drone Platform and Advanced Handheld Ground Station Comprehensive Solution Project"—has passed review by the Ministry of Economic Affairs (MOEA) under its IC Top Program and received government subsidies. The project aligns with Taiwan's policy on dual-use drones, which mandates that UAVs procured by public-sector entities and utilized in commercial applications meet military-civilian shared-use standards.
As low capacity utilization, steep tariffs, and fierce competition from Chinese automakers pressure the industry, significant growth in European defense spending is opening new business opportunities for European and US automotive supply chains. Automakers are entering the defense sector through four main models, namely plant conversion, platform adaptation, protection and security, and autonomous logistics, channeling idle capacity and technological strengths into this new blue ocean.
Taiwan's Syncmold Enterprise grew its third-quarter 2026 revenue even as global PC shipments slumped 20.1%, with its expanding low Earth orbit (LEO) satellite business offering key support and emerging as the precision component maker's mid- to long-term growth engine.
Thunder Tiger has made steady progress in its unmanned aerial vehicle business while also pursuing opportunities in unmanned surface vessels (USVs). At the 2026 Taiwan Marine Tech & Unmanned Robotics Expo (MATURE Taiwan) held this week, Thunder Tiger conducted a live demonstration of its self-developed and self-manufactured SeaShark 600 USV. Chairman William Chen also outlined the company's research and development achievements for the SeaShark series.
Google's Project Suncatcher has crossed an important threshold in orbital computing after its prototype satellite successfully returned an AI response generated onboard using the Gemma 4 model, marking what the company calls the first successful inference from a data center-class tensor processing unit (TPU) in orbit.
OpenAI has appointed former US Army Secretary Daniel P. Driscoll as senior counselor for national security modernization, seeking to expand the use of artificial intelligence (AI) in national security and cybersecurity. Driscoll will advise the company's leadership on applying AI across both areas.
As AI and unmanned systems see wider adoption, the military's reliance on electricity continues to grow, making energy transition critical to maintaining combat capabilities. The South Korean Army made its debut at Smart Energy Plus (SEP) 2026, showcasing microgrids integrating solar power, energy storage systems (ESS), and hydrogen fuel cells, along with hydrogen-powered tactical vehicles and hydrogen fuel-cell drones to reduce dependence on external power grids.
UK low-cost airline EasyJet has agreed with SpaceX to install Starlink satellite internet on its A320, A320neo, and A321neo fleets starting in the first half of 2027, with the rollout expected to be completed by early 2028. The service will allow passengers to stream video, work in the cloud, play online games, and access information during flights.
Eutelsat said that it predicts at least EUR10 billion (US$11.2 billion) in revenue from 2032 to 2040 as it leads the EU's low Earth orbit (LEO) network initiative IRIS2. The European satellite player is viewed by the EU to be a homegrown alternative to SpaceX's Starlink satellite service and a key to reducing technological reliance on the US.