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Dec 10, 07:47
Taiwan and US race to buy 500,000 military drones, testing supply chain resilience

Taiwan and the US plan to procure nearly half a million military drones over the next two years, a rapid buildup that is driving manufacturers to expand production, localize components, and secure testing facilities. The surge in demand is emerging as a key test of whether the drone supply chain can scale fast enough to support large defense programs.

Following the November 29, 2025, launch of the Formosat-8 satellite and several accompanying CubeSats, all spacecraft have successfully established contact with ground stations—marking the completion of their first mission phase. Taiwanese researchers say CubeSats offer a cost-efficient platform for building satellite constellations suited for communications, Earth observation, and space science. With mature technologies now in place, they argue that academia, industry, and government can pursue increasingly meaningful missions. Since rocket launches remain the largest expense, broader deployment will depend on falling launch costs.
South Korean company Hanwha Systems announced the launch of a project to develop aerospace-grade transceiver chips, representing the first time South Korea has independently developed semiconductors for the aerospace sector—a significant step towards autonomous defense space technology.
The Taiwan Space Agency (TASA) has named PixArt Imaging as the first company to receive its space-grade technology license, a milestone expected to serve as a key stepping stone for Taiwan's optical industry to enter the international space applications market. Two additional Taiwanese manufacturers are expected to receive licenses by the first quarter of 2026.
AppWorks Accelerator #31 held a joint Demo Day event on December 2, 2025, with Wistron Accelerator #9 and Indonesia's Telkomsel-backed TINC Batch X, showcasing startups that reflect Asia's evolving AI landscape. About 35% of the participating teams have surpassed US$1 million in annual revenue.
As Taiwan strengthens its defense capabilities amid growing regional tensions, the development of indigenous drone technology has become a national priority. To accelerate the growth of Taiwan's drone industry and deepen bilateral technological cooperation, the Metal Industries Research and Development Centre (MIRDC) signed a "Strategic Technology Cooperation Memorandum for Drone Industry Development" with the National Chung-Shan Institute of Science and Technology (NCSIST) on December 2, 2025.
Aerospace Industrial Development Corporation (AIDC) is advancing its push into unmanned systems, announcing a new partnership with US-based Vantor Technologies to license its Raptor Guide software—technology designed to enable precise navigation in environments where GPS is unavailable or jammed. The deal grants AIDC integration and distribution rights, allowing the company to support domestic drone makers with testing, validation, and technical services.
Anli International Chairman Chen-Kun Hsu says the company's push into two major markets—automotive components and server hardware—is beginning to take shape. At the same time, Anli's drone program has moved successfully from development into volume production and shipments, demonstrating that the company is strengthening its cross-disciplinary integration capabilities and its expertise in high-precision structural parts.

With the 3GPP Release 19 standard nearing its freeze and SpaceX's Starship poised to slash launch costs, direct-to-device (D2D) satellite communication is emerging as the telecom industry's next major arena of competition.

China's Zhuque-3 launch vehicle lifted off from the Dongfeng Commercial Spaceflight Innovation Zone this week, completing its ascent and placing its second stage into the planned orbit, according to Landspace, the private company behind the mission. But the landmark flight—viewed as one of the most important tests for China's emerging reusable-rocket capabilities—fell short of its headline goal: recovering the first-stage booster.

The US is accelerating efforts to rebuild a secure, China-free drone supply chain as Beijing's gains in unmanned aircraft technology and production put growing pressure on Washington's defense and law-enforcement agencies.

In recent years, the global space industry has entered an unprecedented period of acceleration, driven in large part by the rapid expansion of low-Earth-orbit (LEO) satellite constellations. Chief among them is SpaceX's Starlink network, which is swiftly reshaping the world's communications infrastructure.