The British Office in Taipei hosted the UK-Taiwan Venture Capital Summit on March 20, highlighting its push for Taiwanese companies to invest in the UK, as well as strengthening ties between the hi-tech industries in the UK and Taiwan.

China's commercial space sector is reaching for the stars, but the journey has been rockier than anticipated.

Mitsubishi Electric expects revenue from its defense system business to soar to at least JPY600 billion (approx. US$4.03 billion) in fiscal 2031, with its operating profit to more than quadruple, thanks to an increase in spending by the Japanese government to reinforce the country's defense capabilities.

Getac Technology Chairman James Huang highlighted Europe's sharp rise in military spending, particularly in Germany, amid the ongoing Russia-Ukraine war. The company is engaged in multiple European defense projects and sees growing momentum in drone fleet development. Getac has been working on Ground Control Station (GCS) systems for a year, collaborating with clients across Europe and the US.

Planet Labs has secured a US$230 million partnership with Japanese satellite operator SKY Perfect JSAT to build a new low-Earth orbit satellite constellation, marking a significant expansion of the San Francisco-based Earth imaging company's global capabilities. Co-founder and Chief Strategy Officer Robbie Schingler outlined how this collaboration represents a growing trend of commercial space technology supporting sovereign defense interests.

China has escalated its trade dispute with the US, imposing up to 15% tariffs on select American agricultural imports in response to the Trump administration's latest tariff hikes. Meanwhile, Beijing's Ministry of Commerce blacklisted 15 US companies under export controls along with 10 more firms added to its "unreliable entity" list, intensifying economic tensions between the world's two largest economies.

China's preeminence in the global shipbuilding arena is unmistakable, as it lays claim to an imposing 70% of the market. The protracted Russo-Ukrainian war has catalyzed a boom in unmanned systems, spurring nations to prioritize the development of both aerial and maritime variants. However, China's commanding grip over these sectors presents formidable hurdles for competitors, notably Taiwan and the US, as they strive to carve out their own footing in this critical technological race.

Taiwan's drone industry is aggressively positioning itself on the global stage, with encouraging developments emerging in recent times. Yet, as international markets fling open their doors, the critical question looms: Can the supply chain seize these opportunities and sustain long-term momentum? This challenge has swiftly ascended to the forefront of the industry's agenda.

Unmanned vehicles plunging from the sky to the sea have emerged as pivotal assets on modern battlefields. While drones have long dominated the spotlight, nations worldwide are now exploring the untapped potential of unmanned maritime vessels. In Taiwan, beyond the state-led Huilong and Kuachi projects spearheaded by the National Chung-Shan Institute of Science and Technology to develop surface and subsurface autonomous vehicles, private enterprises are also making strides.

The Taipei International Machine Tool Show (TIMTOS) is set to highlight "AI and robots" as a core theme for the first time, reflecting the rising industry focus on automation. The aerospace defense market, driven by demand for drones and autonomous systems, is also fueling optimism that these sectors could reinvigorate Taiwan's machine tool industry after years of stagnation.

As global conflicts remain unpredictable, nations are doubling down on military-civilian dual-use technologies to bolster defense autonomy. Industry experts warn that while self-reliance in defense is critical, market dynamics must not be sidelined. The development of these technologies should extend beyond domestic needs, with an emphasis on building resilient industries capable of swiftly adapting to both wartime and peacetime demands.

Taiwan's president William Lai recently announced at a national security meeting that his administration will increase the defense budget to 3% of GDP through special funding, a move that industry sources say will inject momentum into the local defense sector.

Microsoft has unveiled its groundbreaking Majorana 1 quantum chip, marking a significant advancement in quantum computing technology. This development represents a fundamental shift in quantum computing architecture, combining innovative materials with a revolutionary design that promises to address long-standing challenges in the field.

Coretronic Intelligent Robotics Corporation (CIRC), a subsidiary of the Coretronic Group, is actively participating in government procurement efforts and has secured substantial contracts for military drones from the Ministry of Defense of Taiwan.

Taiwanese drone maker Thunder Tiger has announced that it will unveil key components for first-person view (FPV) military drones at the upcoming XPONENTIAL Europe 2025 in Düsseldorf, Germany, including flight controllers and gearboxes. Development and design of these components has already been completed, with mass production slated to begin in 2025.

Zyxel Communications will attend the International Defence Exhibition and Conference (IDEX) in Abu Dhabi from February 17 to 21, 2025. The company plans to present its latest software-defined radio (SDR) products, UAV/USV data link radios, satellite communication modules, advanced radar systems, and new electronic warfare reconnaissance devices to global military clients.

Taiwan's aerospace industry is gaining momentum as global demand for defense autonomy surges and the aviation sector rebounds. Industry sources note that defense and aerospace are two sides of the same coin: military applications fall under defense, while civilian use defines aerospace. Taiwan's push to bolster its defense capabilities is fueling growth in both sectors.

Taiwan's ambitious push to become a trusted partner in the US drone supply chain faces significant hurdles as manufacturers struggle to transition from their traditional hardware expertise to the demands of modern autonomous systems.

Elon Musk has intensified his advocacy for military drones, warning that the US military must accelerate research and production of unmanned aerial vehicles (UAVs) to maintain its global dominance. Yet domestic drone manufacturers acknowledge fundamental weaknesses in the industry, with critical short-term gaps that shape both the sector's trajectory and future trade partnerships.

The aviation supply chain has seen some relief from bottlenecks, but new aircraft orders continue to outpace production capacity, keeping pressure on deliveries. In response, airlines are extending leases on older jets to mitigate fleet shortages, driving up demand for after-sales services and maintenance capacity.

The EU convened a non-official defense summit on February 3, 2025, focusing on strengthening Europe's military capabilities against Russia and other threats. Given the pressing need for autonomous defense systems, the EU plans to invest EUR500 billion (US$516.33 billion) over the next decade to bolster its military industry. Following the prominent role of drones in Russia's invasion of Ukraine in 2022, market observers anticipate substantial growth in Europe's drone market as conventional warfare becomes increasingly technology-driven, with small unmanned aircraft emerging as a crucial segment.

Submarine technology has evolved dramatically with the advancement of technology, transforming naval tactics and global maritime security. From the first US Navy submarine, the USS Holland (SS-1), commissioned in 1900, to modern nuclear-powered submarines equipped with artificial intelligence (AI), the development of submarines has reshaped military operations and strategic maritime initiatives worldwide.

Amid the rapid development of dual-use technologies, the Japanese government has announced intensified regulatory measures on critical technology exports. On January 31, 2025, Japan's Ministry of Economy, Trade, and Industry (METI) revealed a revision to the Foreign Exchange and Foreign Trade Law (FEFTA) to prevent essential technologies from being diverted for military use. This regulatory overhaul targets 21 products, including advanced semiconductors and quantum computers, requiring businesses to obtain prior authorization before export.

As global defense priorities shift in 2025, Taiwan's Aerospace Industrial Development Corp. (AIDC) is positioning drones as strategic assets, leveraging the nation's technological strengths amid heightened regional tensions and evolving military dynamics.