CONNECT WITH US
Apr 11
Taiwan aerospace suppliers shielded from US tariffs for now
The uncertainties regarding the since paused reciprocal tariffs under the Trump administration continue to sweep across global industries, with varying impacts on different sectors. While Taiwan's information technology industry has suffered significant blows, the island's aerospace suppliers appear largely insulated from immediate effects, according to industry executives.
China has imposed new export restrictions on seven medium and heavy rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—through a joint directive from the Ministry of Commerce and the General Administration of Customs. Although intended to curb US access, the move could have far-reaching consequences, with potential disruptions across the robotics sector and its broader supply chain.
Taiwan's Thunder Tiger Corp. is deepening partnerships with major European drone companies amid rising cross-strait tensions following China's surprise military exercises near Taiwan on April 1, 2025.
Taiwan's drone industry, acknowledging limited domestic opportunities, is increasingly focusing on international markets by promoting non-Chinese supply chains. Industry leaders expect significant developments by mid-May, according to the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) chairman from Aerospace Industrial Development Corp. (AIDC), amid emerging shifts in regional market preferences.
Taiwan's National Chung-Shan Institute of Science and Technology (NCSIST) plans to release patents and technologies for three reconnaissance drone models to private manufacturers, shifting its focus to attack drone development amid regional tensions.
Taiwan's Aerospace Industrial Development Corp. (AIDC) is entering a pivotal transformation phase, extending its global footprint beyond its recent Malaysian partnership to establish operations in the United States. The company will integrate biotechnological medical products from Malaysia's Zongheng Group at a new US production facility.
Taiwan's drone industry is undergoing a critical transformation, with Geosat Aerospace & Technology at the forefront. Yung-Lan Yeh, a manager at Geosat, recently highlighted two pivotal challenges in drone development during an interview with DIGITIMES: structural supply chain issues and the fundamental importance of power systems. Yeh emphasized that drones must be developed from an aerospace perspective and warned that without mastering power systems, Taiwan risks falling behind, as even minor imbalances in components like propeller blades could lead to catastrophic failures.
Taiwan's Aerospace Industrial Development Corp. (AIDC) will conclude its "National Defense Self-Sufficiency" initiative in 2026, with Chairman Kai-Hung Hu warning of challenges ahead despite expectations of improved performance in 2025 compared to 2024.
Taiwan's communications industry faces an annual shortage of 4,500 to 5,500 skilled professionals through 2027, according to the National Development Council, intensifying competition for technical talent as the number of graduates declines against rising industry demand.
Global drone manufacturers are navigating uncertain market conditions as Russia, Ukraine, and the US engage in ceasefire discussions that could end nearly three years of conflict. While European demand shows signs of cooling, industry experts remain divided on the long-term impact.
Taiwan's S-Tech, a specialist alloy materials manufacturer under Taiwan Steel Group, has obtained aerospace-grade superalloy certification from a major US aircraft engine manufacturer, positioning itself to capitalize on shifting global supply chains amid US-China trade tensions.
IP provider Ceva has been actively entering the edge AI sector in recent years. In an interview with DIGITIMES, CEO Amir Panush stated that edge AI presents significant market opportunities and will be a key growth engine for Ceva in the coming years.