As global trade grapples with the turbulence of tariff disputes, defense and military demands remain undeterred, emerging as pivotal bargaining chips in negotiations over reciprocal tariffs with the US. Unmanned vehicles have surged to the forefront of strategic priorities, with Taiwan's drone industry already coalescing into a nascent national team.
China's drone supply chain operators report that open-source AI technologies like DeepSeek are significantly enhancing drone performance when applied to power systems and aerospace applications. This integration highlights both technological advances and growing cybersecurity challenges.
China has positioned the low-altitude economy as a cornerstone of its future industrial strategy, with drones serving as the linchpin of this burgeoning sector. Leveraging its early entry into the drone industry, China has secured a dominant global market share, accounting for 70% of commercial drone sales worldwide. This leadership stems from a combination of state-backed technological advancements and cost-effective manufacturing, enabling Chinese firms to outpace international competitors.
China's low-altitude economy is developing at a rapid pace, with companies like Aerofugia and Lzlair advancing electric vertical takeoff and landing (eVTOL) technology toward commercial applications. Chinese firms are actively competing for certification, with expectations of widespread commercial deployment beginning in 2026.
The 3rd InnoEx show kicked off in Hong Kong on April 13, 2025, with the low-altitude economy taking center stage. Together with the concurrent 21st HKTDC Hong Kong Electronics Fair (Spring Edition), the exhibitions showcase more than 2,800 companies from 29 countries and regions.
Hong Kong is demonstrating its smart city innovations at InnoEX 2025, with a strong focus on robotic applications developed by various government departments.
Taiwan's Aerospace Industrial Development Corp. (AIDC) is approaching the final stages of its current domestic aircraft development initiatives, with its chairman, Hu Kai-Hung, noting that 2026 is anticipated to be a particularly challenging year. Despite this, AIDC's recent operational forecast indicates strong performance in its military sector. This includes a surge in aircraft maintenance contracts and substantial investments in drone countermeasure technologies, which are scheduled for launch in June.
China's "Xinchuan" initiative, a national endeavor to supplant foreign technology and imported products with homegrown capabilities, stands as a cornerstone of its industrial policy. However, the reality on the ground reveals a paradox. Vast stockpiles of semiconductor equipment, procured with fervor, languish unused. Absent sufficient orders, these machines remain dormant, underscoring a stark underutilization of China's ambitious investments in chip-making infrastructure.
China's EV dominance is already global, but the next front is autonomous driving. It's no longer just about the vehicle; it's about the AI-powered stack behind it: maps, sensors, monitoring, and infrastructure. For AI, smart cars aren't just another use case—they're the ultimate proving ground.
Hong Kong is set to host its premier technology showcases this spring, as the 3rd edition of the Hong Kong International Innovation & Technology Expo (InnoEX) and the 21st spring edition of the Hong Kong Electronics Fair will take place from April 13-16, 2025 at the Hong Kong Convention and Exhibition Centre. These twin fairs serve as the core events of the city's "Business of Innovation and Technology Week" (BIT Week), spotlighting cutting-edge innovations and the latest electronics trends.
Taiwan's Thunder Tiger Corp. is deepening partnerships with major European drone companies amid rising cross-strait tensions following China's surprise military exercises near Taiwan on April 1, 2025.
Taiwan's drone industry, acknowledging limited domestic opportunities, is increasingly focusing on international markets by promoting non-Chinese supply chains. Industry leaders expect significant developments by mid-May, according to the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) chairman from Aerospace Industrial Development Corp. (AIDC), amid emerging shifts in regional market preferences.
Taiwan's National Chung-Shan Institute of Science and Technology (NCSIST) plans to release patents and technologies for three reconnaissance drone models to private manufacturers, shifting its focus to attack drone development amid regional tensions.
Taiwan's Aerospace Industrial Development Corp. (AIDC) is entering a pivotal transformation phase, extending its global footprint beyond its recent Malaysian partnership to establish operations in the United States. The company will integrate biotechnological medical products from Malaysia's Zongheng Group at a new US production facility.
Taiwan's drone industry is undergoing a critical transformation, with Geosat Aerospace & Technology at the forefront. Yung-Lan Yeh, a manager at Geosat, recently highlighted two pivotal challenges in drone development during an interview with DIGITIMES: structural supply chain issues and the fundamental importance of power systems. Yeh emphasized that drones must be developed from an aerospace perspective and warned that without mastering power systems, Taiwan risks falling behind, as even minor imbalances in components like propeller blades could lead to catastrophic failures.
Global drone manufacturers are navigating uncertain market conditions as Russia, Ukraine, and the US engage in ceasefire discussions that could end nearly three years of conflict. While European demand shows signs of cooling, industry experts remain divided on the long-term impact.
Microcontroller (MCU) vendor Sonix Technology has ventured into the drone market by launching a high-resolution digital image transmission system to enhance the real-time control of unmanned vehicles.
The collaboration between Taiwan and Japan in the drone sector is taking shape. The Taiwanese Excellence Drone Alliance (TEDIBOA) has recently formed a new partnership with the Japan Drone Consortium (JDC). Both parties announced further cooperation as Ann Wu, chairman of CIRC, signed a memorandum of understanding with Kenzo Nonami, chairman of JDC.
The Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA) will announce in May its latest results in cultivating new opportunities for Taiwan's drone industry, according to alliance leader Aerospace Industrial Development Corporation (AIDC). After more than six months of continuous effort overseas, industry insiders note that international drone makers have now gained insight into the advantages of Taiwan's supply chain, with particular interest surrounding two key technologies.
A Taiwanese shipbuilder has launched a military-grade unmanned surface vessel (USV) that it independently developed without any involvement from China's supply chain.
The drone sector is experiencing robust growth globally, driven by both military conflicts and expanding commercial applications. Amazon's deployment of delivery drones and Taiwan's potential adoption for traffic enforcement illustrate the broadening scope of unmanned aerial vehicle (UAV) utilization. According to AIDC's senior vice president Jennifer Chuang, who recently attended Germany's XPONENTIAL Europe exhibition, this expansion reflects evolving warfare concepts and commercial innovations.
Recent major innovations in transport-related industries have not just been confined to the "C.A.S.E." (connected, autonomous, shared, electric) trend in automobiles. Increasing attention has turned skyward toward low-altitude transport as well, with a number of Taiwanese companies now vying for a piece of this pie.
Taiwan's Aerospace Industrial Development Corp. (AIDC) is spearheading the "Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa)," leveraging its connections with top-tier global aviation supply chains. AIDC Chairman Kai-hong Hu revealed that after six months of international outreach, the alliance is securing memorandums of understanding with multiple countries and developing potential orders, with results to be announced around May 20 that "will not disappoint."
As MWC 2025 concluded, industry observers are focusing on the evolution of next-generation communication technologies. This year's conference highlighted Non-Terrestrial Networks (NTN), with major telecom operators actively positioning themselves as related technologies continue to mature.
