The Russia–Ukraine conflict has transformed modern warfare, prompting nations to accelerate the development and mass production of diverse attack drones. Future battles may begin with waves of unmanned aerial vehicles (UAVs) whose low-cost, mid-to-long-range strikes are intended to exhaust expensive surface-to-air missiles, whether launched from land, sea, or aircraft, before clearing the way for more destructive warplanes and missiles.
Taiwan's Shinkong Synthetic Fibers Corporation (SSFC) is deepening its push into the low-altitude economy, unveiling plans to transform its Shinkong InnovHUB complex into northern Taiwan's largest center for unmanned aerial vehicle (UAV) development, manufacturing, test flights, and licensing. The project, part of the Shinkong Young Lion smart manufacturing park, aims to serve as an integrated platform spanning design through deployment.
As Taiwan's machinery industry grapples with the dual pressures of currency volatility and rising tariffs, one company is defying the broader sector's gloom. Quaser Machine Tools, a precision equipment manufacturer, is doubling down on the high-margin aerospace sector—and seeing results.
Despite foreign exchange headwinds and delayed shipments in the second quarter, Universal Microwave Technology (UMT) is doubling down on the fast-growing low Earth orbit (LEO) satellite market. President Dr. Tungyi Wu said the company's LEO revenue grew 40% year-over-year in the first half of 2025, for the first time accounting for more than half of total sales.
On July 31, 2025, US President Donald Trump signed an executive order to adjust reciprocal tariff rates, setting the provisional tariff for Taiwan at 20%, effective from August 7, 2025. According to senior government officials in Taiwan, relief measures have been initiated, and affected businesses are urged to apply within the stipulated timeframe. For traditional industries, China faces tariffs exceeding 50% on related goods, which provides Taiwan with a competitive opportunity to gain market recognition.
Taiwan President Ching-Te Lai stressed the importance of defense autonomy during his speech at the "2025 Taiwan Venture Capital Summit" on August 12, 2025. He stated that Taiwan has no intention of changing the status quo but must strengthen its national defense.
A surge in global demand across defense and aerospace sectors—including military weapons, unmanned systems, commercial aircraft, and low-Earth orbit satellites—is fueling rapid growth and pushing material requirements to new heights. Among the key beneficiaries: carbon fiber composites, prized for their high strength and lightweight properties. As performance and fuel efficiency become critical differentiators, carbon fiber has emerged as a strategic material, opening the door for suppliers to move upmarket into advanced global supply chains.
Taiwanese electrical parts manufacturer Cub Elecparts announced on August 11 that it will partner with an international defense technology company to officially enter the counter-drone market. Production and sales will be conducted in Taiwan, while simultaneously developing international markets.
As Taiwan accelerates efforts to localize satellite manufacturing, the Taiwan Space Agency (TASA) recently held a briefing on its new communications satellite manufacturing industrialization platform—an initiative aimed at cultivating domestic capabilities for low Earth orbit (LEO) satellite production and systems integration.
Following South Korea's shocking announcement to invest US$350 billion in the US, with 90% of the profits staying in the US, Nvidia and AMD reportedly have agreed to pay 15% of their chip sales revenue from China to the US government. This equally astonishing arrangement secures export licenses from the US government for Nvidia's H20 and AMD's MI308 chips shipping to China.
The National Science and Technology Council (NSTC) Southern Taiwan Science Park (STSP) Bureau has recently approved investment applications from three companies: Yalixin, Mega Sunergy, and Nalco Water.
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