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Dec 12
US advances massive drone purchase as Taiwan firms seize new opportunity

The US and Taiwan plan to accelerate military drone cooperation in 2026 as Washington advances a large procurement program and Congress moves forward with legislation calling for joint development. The efforts are expected to create opportunities for Taiwanese manufacturers in key technologies, supply chains, and overseas markets, according to industry executives.

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.
Taiwanese manufacturers are positioning themselves for defense-sector expansion as the government prepares a NT$1.25 trillion (approx. US$40 billion) special budget to accelerate domestic weapons production and strengthen supply chain autonomy. The initiative aligns with a global surge in military spending and is expected to create new opportunities for unmanned systems, aerospace maintenance, and satellite communications.
Teledyne FLIR Defense won a US$42.5 million order for Rogue 1 loitering munitions from the US Marine Corps, while Croatian drone maker Orqa is expanding capacity to meet rising Pentagon demand for NDAA-compliant systems.

FarEasTone (FET) has taken a major step in exporting its telemedicine capabilities abroad, announcing on Dec. 8 that it has signed a memorandum of understanding with Taiwan's Teleport Access Services and Indonesia's state-owned satellite operator Telkomsat. The three parties will jointly develop satellite-based telemedicine services aimed at remote and underserved communities across Indonesia's far-flung islands.

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.

Thunder Tiger expects strong demand over the next two years as it prepares to compete for drone procurement programs in Taiwan and the US. General Manager Gene Su said the company will bid on Taiwan's plan to purchase nearly 50,000 military drones in 2026 and 2027 and will also pursue a US Department of Defense initiative worth up to US$1 billion. Su said Thunder Tiger has sufficient capacity to support both markets.
Starlink, SpaceX's low-Earth-orbit (LEO) satellite internet service, officially went live in South Korea on December 4, 2025, marking a significant milestone for the country's next-generation communications infrastructure.
OpenAI CEO Sam Altman has reportedly engaged in discussions to invest in or acquire Stoke Space, a rocket manufacturer, aiming to develop space-based data centers and compete with Elon Musk in the aerospace sector, The Wall Street Journal (WSJ) reported.

As artificial intelligence (AI) accelerates the global semiconductor race—and as commercial space activity heats up—the idea of moving chip fabrication into orbit is edging from science fiction toward technological reality.

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.