Thunder Tiger Technology, a leading drone manufacturer in Taiwan, has revealed impressive achievements at this year's AUSA (Association of the United States Army) Convention and has secured interest from many clients. Additionally, the company is collaborating with Israeli drone optics giant NextVision to expand production.
Amid concerns over potential shifts in US military engagement following President-Elect Donald Trump's election victory, Taiwan is accelerating efforts to bolster its defense capabilities. President Lai Ching-te has identified defense as one of five key trusted industries, with plans to build an autonomous military supply chain centered on critical technologies including drone development.
The Taiwan Drone Excellence Overseas Business Alliance, established in late 2024, has secured Poland as its second "ally" after Oklahoma, US. The partnership aims to advance international drone sales, technology development, supply chain integration, and global competitiveness.
On November 13, the US government announced a non-binding preliminary agreement with Akash Systems. Through the CHIPS and Science Act, the Department of Commerce intends to allocate up to US$18.2 million in funding to support Akash's development of next-generation semiconductor technologies, according to Reuters.
AI, biomedicine, quantum computing, innovative semiconductor materials, and advanced semiconductor manufacturing are shaping up as pivotal areas for Taiwan's future research and development, with profound implications for defense and industry applications. This critical juncture was highlighted by Professor Chuu Chih-sung's groundbreaking creation of the world's smallest quantum computer at National Tsing Hua University's Department of Physics and Center for Quantum Technology.
The global aerospace supply chain faces unprecedented volatility, creating a rare opening for Taiwan and Asia-based manufacturers. Additionally, President-Elect Donald Trump's renewed focus on "protection fees" for Taiwan has raised concern about potential impacts on US-Taiwan military relations.
The first two years under Donald Trump's second term could be "quite impactful" if policy changes are made on tax, deregulation, and crypto, according to Stefan Gratzer, managing director at J.P. Morgan Private Bank.
US defense technology companies are increasingly looking to Taiwan as a critical manufacturing base and supply chain partner, as revealed during a recent Arizona-led trade delegation to Taipei. The mission, which included four emerging defense tech firms, highlights growing bilateral cooperation in aerospace and defense amid rising regional tensions.
Carbon-Based Technology recently delivered its "Albatross II" drone to Taiwan's Chung-Shan Institute of Science and Technology (NCSIST) alongside Air Asia Company Limited (AACL). However, due to budget constraints for next year that have halted production, the company's plans for scaling up the advanced drone are temporarily on hold. Despite the setback, Carbon-Based Technology states it has readied production capacity and will now target high-demand commercial markets in Northeast and Southeast Asia.
As the only Taiwanese exhibitor at the 2024 Association of the United States Army (AUSA) show, Thunder Tiger is strengthening its presence for the second consecutive year, demonstrating notable evolution in its offerings.
Aiseed, a burgeoning startup in the drone sector, is leveraging edge AI technology to carve out its niche in the market. The team recently stated that integrating edge AI into drones will become as indispensable as Full Self-Driving (FSD) systems are for smart vehicles. The surge in military procurement contracts has significantly boosted demand for commercial drones, prompting numerous startups to seize the opportunity to establish a foothold in the global non-restricted supply chain through domestic orders.
The defense sector, once a tightly controlled and exclusive industry with high entry barriers, is opening up amid US-China tensions and rising geopolitical conflicts. This realignment of global supply chains isn't just reshaping the tech sector—it's also creating new opportunities for companies eager to break into the high-margin defense market.
US-Taiwan cooperation on developing an autonomous defense supply chain in the drone sector is accelerating, as two delegations of American drone industry representatives visited Taiwan in late September and early October.
Following the visit of 26 US drone organizations at the end of September, Taiwan-US collaboration has taken another step forward. The newly established "Taiwan Drone Excellence Overseas Business Alliance" has welcomed its first cooperative partner.
A list of "Accredited Suppliers" for semiconductor design, wafer foundry, packaging, and testing, among other services, was recently published by the Defense Microelectronics Activity (DEMA) of the US Department of Defense (DoD). By supplying to the recognized supply chain, which includes key firms such as GlobalFoundries, IBM, SkyWater Technology, and Northrop Grumman, Taiwan-based firms are attempting to secure indirect orders.
In a significant move to strengthen defense ties, a US drone and counter-drone delegation recently visited Taipei, exploring supply chain collaboration with Taiwan's burgeoning unmanned aerial systems (UAS) sector. Simultaneously, Taiwan launched the "Taiwan Excellence UAS Global Business Alliance," bringing together 50 companies to expand its drone industry's international footprint.
The defense sector has long been a significant contributor to global carbon emissions, and now, according to Dr. Shr-Yi Chin, an expert in sustainability and carbon management, it's time for the industry to face the challenge head-on. Speaking on the topic of sustainability, he emphasized the urgent need for the defense industry to take serious action toward reducing its carbon footprint, which is responsible for a significant portion of many nations' overall emissions.
Multiple pager and walkie-talkie explosions in Lebanon have heightened tensions across the Middle East, fueling a surge in global military expenditures. As conflicts flare up in various regions, defense tech manufacturers like Transcom Technology are witnessing rising demand. The power amplifier (PA) producer, which specializes in defense-related applications, reports an uptick in government defense contracts and increasing international shipments.
As Taiwan's drone industry garners increasing attention, the country is set to host its first dedicated drone exhibit at the "AIoT Taiwan" event. Industry insiders report that 24 companies, including key players like Thunder Tiger and Coretronic Corporation, will participate.
Low Earth Orbit (LEO) satellites are emerging as a hotbed of innovation, attracting significant industry interest. Ubiqconn Chairman Leo Chien sees LEO satellites as poised to become a major catalyst for global satellite market expansion over the next decade.
Taiwan's government is intensifying its efforts to develop the domestic drone industry, designating it as one of the five key pillars in the nation's trusted supply chain initiative. Minister of Economic Affairs J.W. Kuo recently announced that the National Development Council (NDC) will allocate funds from the National Development Fund to support the drone sector, aiming to achieve a production value of NT$30 billion (approximately USD 950 million) by 2028.
