News / Taiwan / cnyes
VP Hsiao: Taiwan to Leverage Defense Needs to Scale Up Drone Industry
Electronic Technology · Aerospace & Defense · cnyes · 2026-08-26
Vice President Hsiao Bi-khim emphasizes that Taiwan will utilize domestic defense procurement and AI supply chain strengths to build a resilient, non-red drone industry.
What Happened
Strategic Importance of Drones: Vice President Hsiao Bi-khim highlights that drones have become essential in modern warfare, as evidenced by conflicts in Ukraine and the Middle East. Taiwan aims to enhance its defensive capabilities and disaster response through long-range, AI-enabled drone technology.
Industrial Development Strategy: Taiwan is building a resilient "non-red supply chain" for drones, focusing on both system integration and component manufacturing. With exports in the first half of 2026 already surpassing the previous year's total, the industry is rapidly gaining international traction.
Government Policy and Funding: The government has allocated 44.2 billion TWD for industrial development alongside a 210 billion TWD defense budget for procurement. This dual approach aims to stabilize demand, reduce production costs, and enhance the global competitiveness of Taiwanese drone manufacturers.
Future Technological Outlook: Future development will focus on advanced AI decision-making and onboard processing capabilities. By coordinating cross-ministerial support and providing long-term, stable orders, the government expects to foster significant breakthroughs in the domestic drone sector.