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Sep 17
Column: China tightens rare earth controls, exposing hidden vulnerabilities in Taiwan's supply chain
China's rare earth export controls are changing the rules governing global critical mineral supply chains. For Taiwan, the real concern is not that China could suddenly halt all exports one day, but that export licensing, end-use reviews, price volatility, longer lead times, and "hidden dependencies" embedded in intermediate materials and components could gradually raise the cost and uncertainty of maintaining normal production.

The UK government has pledged GBP30 million (approx. US$40.6 million) to SaxaVord Spaceport in Shetland, placing domestic orbital launch capability at the center of its new space strategy as it seeks to advance commercial rocket launches, satellite communications, and national security in parallel.

Twoway has signed an agency procurement contract with a purchasing delegation from Oklahoma, marking a breakthrough in its defense strategy as it expands North American deployment of FPV drones, various unmanned vehicles, and mobile security vehicles.
China's capital, Beijing, is tightening drone controls further, with the municipal legislature approving revisions to the Beijing Regulations on Unmanned Aircraft Management that will take effect on November 15, 2026. The entire administrative area of Beijing will be designated as controlled airspace for unmanned aircraft, banning drone flights, the possession and storage of drones and their core components, and the transport of such equipment into the city.
Two Beyond 5G low-Earth orbit (LEO) satellites being developed by the Taiwan Space Agency (TASA) under a National Science and Technology Council (NSTC) program, along with four LEO communications satellites awarded to Wistron and Compal Electronics under an NT$1.178 billion (approx. US$37 million) contract, will not be ready in time to meet the government's communications resilience requirements for 2027.
Starlink's enormous low-Earth-orbit (LEO) footprint has long cast a shadow over the broader aerospace industry, turning satellite broadband into a race defined as much by constellation scale as by network performance.

Much of the industry attention surrounding AI infrastructure buildouts is now inextricably tied to sheer compute power, with market dominance or competitiveness defined largely by the highest-performing GPUs or the fastest construction.

A pioneering cohort of space startups is betting that the key to unlocking next-generation technology lies off Earth. Armed with millions in private capital and backing, these ventures are leveraging the unique conditions of low Earth orbit to manufacture semiconductor materials and pharmaceutical compounds with degrees of purity and structural perfection that can be difficult or impossible to achieve on Earth.

Foreign drone makers are increasingly turning to Taiwan as a hub for non-China drone supply chains, drawn by the island's component strengths and the global push to build alternative sourcing networks. US drone companies have stepped up their presence in Taiwan, while a Swiss drone maker is now considering relocating production there.

Shinkong Synthetic Fibers Corporation (SSFC) is stepping into Taiwan's emerging low-altitude economy, partnering with Taiwan-based drone-data and AI platform Earthbook and Swiss medical logistics company Delivery Glider AG (Jedsy) to develop commercial drone services, initially targeting medical logistics.
Taiwan is planning to deploy drone detection and countermeasure systems at nuclear power plants and other critical infrastructure to strengthen its ability to respond to security threats. The Nuclear Safety Commission (NSC) is conducting a nuclear emergency response drill at the Second Nuclear Power Plant and surrounding areas from September 8–10.

China's next-generation communications push is beginning to reveal a broader ambition than simply putting faster wireless connections into future smartphones.