Space-related business opportunities have returned to the spotlight, and SpaceX is expected to go public in bringing data centers to space. Within Taiwanese IC design companies, MediaTek is leading in involvement and business scale in the satellite sector. It currently focuses primarily on satellite communications, maintaining influence in the formation of satellite broadband network standards and promoting direct-to-cell smartphone applications. Additionally, its subsidiary Airoha offers GNSS positioning chips, and its newly developed Ethernet chips have teamed up with MediaTek's Wi-Fi chips for satellite communication ground transceivers.

Taiwan–US defense cooperation is taking a significant step forward as leading American defense technology firms move to establish local operations and supply chains in Taiwan. These developments could pave the way for additional global Tier-1 military contractors to set up a presence in the country.

Taiwan-based Singtex Industrial, a supplier of eco-friendly functional textiles, has begun mass production at its newly invested polyester dyeing and finishing facility in northern Taiwan, marking a major step in its vertical integration strategy even as near-term margins remain under pressure during the capacity ramp-up phase.

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.

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.