Taiwan is accelerating its B5G satellite development with a dual-track strategy of in-house manufacturing and procurement, as the Executive Yuan convened a "Strategic Review Board Meeting on the Satellite Communication Industries" on October 14, 2024. The policy shift, detailed in a February 4 report, aims to shorten the industry's learning curve and strengthen Taiwan's satcom ecosystem.

The EU convened a non-official defense summit on February 3, 2025, focusing on strengthening Europe's military capabilities against Russia and other threats. Given the pressing need for autonomous defense systems, the EU plans to invest EUR500 billion (US$516.33 billion) over the next decade to bolster its military industry. Following the prominent role of drones in Russia's invasion of Ukraine in 2022, market observers anticipate substantial growth in Europe's drone market as conventional warfare becomes increasingly technology-driven, with small unmanned aircraft emerging as a crucial segment.

Submarine technology has evolved dramatically with the advancement of technology, transforming naval tactics and global maritime security. From the first US Navy submarine, the USS Holland (SS-1), commissioned in 1900, to modern nuclear-powered submarines equipped with artificial intelligence (AI), the development of submarines has reshaped military operations and strategic maritime initiatives worldwide.

Drones are anticipated to be a significant growth area for Taiwanese manufacturers, with opportunities mainly in the commercial and military sectors. The military market is particularly noted for its short product lifespans and rapid innovation.

As global defense priorities shift in 2025, Taiwan's Aerospace Industrial Development Corp. (AIDC) is positioning drones as strategic assets, leveraging the nation's technological strengths amid heightened regional tensions and evolving military dynamics.

While China implements export bans on key drone components in retaliation, the market has become increasingly volatile. Industry observers note that the drone industry's readiness has not kept pace with the rapid emergence of new competitors. Despite Taiwanese companies actively preparing for market expansion, the timing for significant growth may still be uncertain.

Universal Microwave Technology (UMT) is strengthening its manufacturing footprint to capitalize on the burgeoning low Earth orbit (LEO) satellite market. In December 2024, the company completed facility expansions in Taiwan and Vietnam, while simultaneously planning additional production sites in northern Taiwan.

Elon Musk openly questioned whether companies that joined President Donald Trump's announcement promising hundreds of billions of dollars in artificial intelligence (AI) infrastructure could follow through on their promises, exposing an early internal rift within the White House.

Since assuming office, Donald Trump has drawn global attention with tariff policies and defense strategy influence through protectionism. Dissatisfied with NATO allies' defense spending, Trump has demanded increased budgets, likened by some to a "protection fee." Now, with tariffs largely in place, defense policy appears next on his agenda.

Taiwan's digital infrastructure faced challenges again as two submarine cables connecting Taiwan and the Matsu Islands were completely severed on January 22, marking the latest in a series of disruptions that highlight the vulnerability of critical communication networks in the region.

With Trump's return to the White House, global industries are anticipating shifts in sectors like drones, particularly in response to potential drone bans targeting China. As China faces increased export restrictions, Taiwan's strong supply chain is ready to meet the growing demand from US and European manufacturers seeking alternatives, offering Taiwanese companies a prime opportunity to expand their global presence in the drone industry.