Taiwan’s drone industry may be left behind as the US strengthens its own drone sector, according to a report by the Taipei-based Research Institute for Democracy, Society, and Emerging Technology (DSET).
In June, US President Donald Trump signed two executive orders aimed at strengthening American leadership in drone technology. The orders focus on improving airspace security, reducing reliance on Chinese drones and parts, and prioritizing the purchase of US-made drones for federal agencies and the military.
Tiunn Hong-lun, Deputy Director of DSET’s National Security Research Group, warned that without formal agreements or inclusion in US drone development and defense projects, Taiwan could be excluded at critical moments. He stressed the need for Taiwan to strengthen its own drone manufacturing capabilities.
He pointed out that relying on imported drones and components might be impossible if tensions escalate in the Taiwan Strait. Taiwan’s democratic allies, he argued, should help build a self-sufficient UAV supply chain for Taiwan.
The report suggests several ways the US can support Taiwan, including helping it obtain cybersecurity and supply-chain security certifications. This would open the door for Taiwanese UAV products to be procured by the US. It also proposes setting up a joint facility for assembling and testing military-grade UAVs in Taiwan, as well as implementing bilateral certification and research initiatives to ensure long-term cooperation.
Taiwan is making strides in its drone industry, focusing on affordable, modular, and autonomous UAVs. In May, the Taiwanese government announced plans to buy 47,000 drones over the next four years and aims to produce 180,000 drones annually by 2028, with a projected value of NT$27.74 billion (US$937.5 million).
The country’s UAV sector nearly doubled in value, from NT$2.8 billion in 2023 to NT$5 billion in 2024. Exports rose significantly, from 290 units in the second half of 2023 to 3,473 units last year. The momentum continued into the first quarter of 2025, with 3,426 units exported. However, annual production remains at 8,000 to 10,000 units, well below the 2028 target.
Cathy Fang, a policy analyst at DSET, emphasized Taiwan’s potential to help democratic nations reduce their dependence on Chinese-made drones and components. Taiwan’s expertise in semiconductors and electronics, she noted, positions the country to contribute to a China-free drone supply chain.
