As Donald Trump returns to the White House, South Korean industries are closely monitoring the potential implementation of anticipated executive orders and their implications for critical sectors such as semiconductors, automotive manufacturing, and steel production. While these industries face considerable risks, others, including drones, shipbuilding, and aerospace, may find growth opportunities.
China's National Development and Reform Commission (NDRC) has established a department to boost the low-altitude economy, targeting growth in 2025 and beyond. This move aligns with Beijing's recent push for aviation reforms, focusing on airspace management, traffic systems, and low-altitude infrastructure.
Taiwan's drone manufacturers are making significant strides in reaching global supply chains, despite facing challenges similar to other domestic industries where small and medium-sized companies dominate the landscape. To overcome these limitations, the sector has been pursuing strategic alliances and integration initiatives to achieve the scale necessary for international market success.
Taiwan's drone industry faces a significant challenge due to limited chip design capabilities for drones. To address this issue, Taiwan's Ministry of Economic Affairs (MOEA) launched a subsidy program targeting the development of key drone chips.
Transcom, a provider of military-grade power amplifiers (PA), has disclosed that its revenue for 2024 reached an all-time high. The company's strong sales performance last year was primarily driven by government contracts, satellite communication-related products, and an increase in military drone shipments.
Global conflicts have accelerated the integration of emerging technologies into defense strategies, with countries prioritizing supply chain resilience. In Taiwan, President Lai Ching-te's administration's proposal of "five trusted industries" highlights military innovation, strengthening the defense supply chain.
The US government is seeking public input on proposed rules to secure the ICTS supply chain for drones, potentially limiting Chinese drones, which dominate US markets.
Chinese Goertek is set to invest US$570 million into expanding its operations in Bac Ninh, Vietnam, pending the necessary approvals from local authorities.
Etron Technology's subsidiary eYs3D Microelectronics has achieved new milestones in visual sensing technology with the launch of multi-sensor control chips for robots and unmanned vehicles. The company's solution includes a proprietary AI platform featuring multimodal vision-language model (VLM) capabilities, providing clients with a comprehensive reference design for testing.
Taiwan's drone industry is surging amid growing demand for national defense autonomy and cybersecurity, but challenges persist. Companies face stiff competition from low-cost Chinese rivals, pressure to enhance component cost-efficiency, and the need to foster international collaborations.
In remarks at the Executive Yuan's 12th National Science and Technology Conference on December 16, TSMC Chairman C.C. Wei relayed insights from Elon Musk, who envisions multi-functional robots and drones as the next wave of AI applications. Despite Taiwan's promising tech landscape, research by government advisory bodies has identified critical gaps in Taiwan's supply chains for both robots and drones that need urgent attention.
Japanese telecommunications company KDDI and its subsidiaries KDDI SmartDrone and KDDI Research have successfully completed a fully unmanned automated logistics delivery experiment in collaboration with partners including Tier IV and Aisan Technology.
Aegiverse is betting big on fiber-optic gyroscopes (FOG) as military demand for resilient navigation systems surges amid growing drone and satellite deployments. The National Central University spinoff, founded in 2022, is pushing into US and Indian markets while deepening ties with Taiwanese defense contractors.
Taiwan has launched the "Defense Innovation Unit" to accelerate the development of dual-use military technologies, with a particular focus on drones and countermeasures. The initiative draws inspiration from the US Defense Innovation Unit (DIU), which collaborates with private tech firms to integrate commercial innovations into defense applications swiftly. Taiwan's Ministry of National Defense aims to replicate this model, fostering collaboration between its military and civilian sectors to modernize defense capabilities and reduce reliance on traditional military frameworks.
Taiwan's emerging drone sector shows promise but faces hurdles in catching up with China's established industry. Recent events demonstrate Taiwan's commitment to growing its drone sector, including the first specialized drone display at the Taipei International Electronics Show (TAITRONICS) in 2024 and the planned drone section at COMPUTEX in 2025.
China's push for semiconductor self-sufficiency, spurred by US restrictions, is yielding dual-use technological advances that span both civilian and defense sectors. Several key developments highlight this trend.
Development of drones and low-Earth orbit (LEO) satellites in Taiwan has been hindered by a lack of domestically developed chips, according to industry sources.
Nearly 60 space companies are showcasing their latest innovations at TASTI Expo 2024, demonstrating Taiwan's growing aerospace capabilities. The Taiwan Space Agency (TASA) leads the exhibition with Formosat-8, featuring locally developed components including optical payload, GPSR, satellite computer, power systems, and communication modules.
The largest US drone maker struggles with supply chain disruption after selling drones to Taiwan's fire departments, with current inventory projected to last until spring 2025.
Taiwan is making a determined push into aerospace as part of its "Five Trusted Industry Sectors" initiative, with the sector reaching NT$133.6 billion (US$4.2 billion) in output, returning to pre-pandemic levels. This industry, deemed critical for national defense and technological advancement, is experiencing a renaissance after the severe disruption of 2020-2022.
Jensen Huang recently identified drones as one of three types of robots suitable for mass production, marking his first public statement classifying drones within the robotics ecosystem. This observation follows his earlier assertion that "AI in its most general form is robotic."
Taiwan is making an aggressive push into the global drone market, leveraging its manufacturing prowess and "non-red" supply chain status as Western nations seek alternatives to Chinese providers, according to government officials and industry executives.
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.
