National Aerospace Fasteners (NAFCO), led by president Alvin Lin, signed a five-year cooperation contract with Germany-based MTU Aero Engines during the 2025 Paris Air Show. The agreement expands collaboration to precision machining at NAFCO's plant in Suzhou, China.

Taiwan's National Chung-Shan Institute of Science and Technology hosted a demonstration of unmanned vessels, drawing 13 domestic and international companies, including five US firms that participated despite potential Chinese sanctions.

Defense industry autonomy has emerged as a global priority amid escalating geopolitical tensions. The Taiwan-US Defense Industry Forum recently concluded with former US Army Secretary Christine Wormuth leading a defense delegation to the island, focusing on bilateral cooperation opportunities highlighted by lessons from the Russia-Ukraine War. A Ukrainian industrial delegation, including drone sector representatives, is scheduled to visit Taiwan next, signaling deepening ties among democratic allies.

Amid escalating geopolitical tensions, global defense spending is surging, transforming the sector into a strategic growth pillar alongside semiconductors. For Taiwan's ChenFull Precision Co., these two industries form the backbone of its operations. While the company's defense segment remains modest in scale, its gross margin approaches 70%—a remarkable figure that outpaces all other business units and now serves as a critical driver of ChenFull's broader corporate growth.

Europe's military-industrial supply chain is experiencing renewed momentum as US President Donald Trump's hardline stance on NATO defense budgets continues to reshape spending priorities across the EU. Taiwanese manufacturer MilDef Crete, specializing in rugged industrial computers, has indicated that increased defense spending within the bloc, initially driven by policies from the Trump administration, has evolved into a long-term structural trend. This heightened military expenditure is anticipated to continue beyond the conclusion of the Russia-Ukraine conflict.

International satellite operators including SpaceX and Amazon Kuiper have launched initial constellations, officially opening the commercial low-Earth orbit market and spurring demand for communication components. Research firms project the market will expand several-fold over the next decade, boosting orders for parts, ground equipment, and services.

Elon Musk's Starlink has reportedly received a long-awaited license from India's telecom ministry to offer satellite internet services, clearing a key regulatory hurdle after a three-year wait. The approval opens access to a massively underserved market but comes with conditions, including spectrum trials and security clearances before commercial rollout can begin.

Taiwan military-grade power amplifier maker Transcom said it completed testing and certification for multiple products this year, including high-frequency solid state power amplifiers, up-conversion Doppler amplifiers, and high-frequency receivers. The company expects to receive military product certification in the second half of 2025.

Taiwan's Industrial Technology Research Institute (ITRI) is making a strategic move to redefine the future of drone technology, unveiling six groundbreaking innovations at the Japan Drone 2025 exhibition. By targeting high-value sectors such as inspection and logistics, ITRI is positioning itself at the cutting edge of a rapidly evolving market, setting the stage for its drone technologies to lead in next-generation applications.

Third-generation semiconductor GaN-on-SiC has emerged as a critical battleground in the US-China technology rivalry, with both nations racing to develop advanced military radar systems capable of detecting stealth aircraft.