On Oct. 23, I attended the Taitronics and AIoT Taiwan expo in Taipei, where I engaged in discussions with industry representatives about Taiwan’s growing efforts in drone technology. The dedicated drone pavilion offered a valuable look into Taiwan’s ambitions in this vital sector.
For Taiwan, this exhibition was more than a showcase; it served as a rehearsal for the Taipei Aerospace Defense Technology Exhibition next year, at which Taiwan plans to make a significant impression in the domestic drone market and potentially on the global stage.
Although Taiwan has been involved in drone development for several years, its presence in the international market has been limited. However, the war in Ukraine has prompted many countries, including Taiwan, to reconsider the role of drones in modern warfare. The conflict has underscored the importance of drones in military strategy, and Taiwan has taken note.
Since the mid-1990s, drones have proven invaluable in asymmetric warfare, initially for intelligence, surveillance and reconnaissance missions. However, their use expanded significantly following the 2001 US invasion of Afghanistan, where drones transitioned into combat roles. They are cost-effective, easy to operate and, if necessary, disposable. Their long operational hours and relatively low-cost ammunition make drones an efficient tool for neutralizing threats that do not warrant high-value assets. The success of drones in Afghanistan inspired many countries to incorporate them into their combat strategies.
For Taiwan, the development and deployment of drones remained relatively low on the priority list until the war in Ukraine. Images of Ukrainian drones destroying Russian tanks spread rapidly, catching the attention of Taiwanese officials. This led to Taiwan’s “Drone National Team” initiative, which aims to strengthen the nation’s drone capabilities. Part of this initiative included a new drone development center in Chiayi to supply 2,400 military and civilian-grade drones by July. While some experts were skeptical of reaching such production numbers so quickly, the initiative has made other advancements.
One of Taiwan’s strengths in drone development lies in its global leadership in high-tech sectors, particularly semiconductors. Unlike many manufacturers that rely on Chinese components, Taiwan is building a “non-Chinese drone supply chain.” This aligns with Taiwan’s broader goal of creating a resilient security supply chain independent of Chinese influence.
At the drone pavilion, I spoke with representatives who were confident that Taiwan’s high-tech expertise and resources position it to develop, manufacture and test drones domestically. They emphasized that Taiwanese companies have already made impressive strides in this area.
In addition to aerial drone developments in various classes, I observed that Taiwanese companies had finally began paying attention to uncrewed surface vehicles (USVs). As an island nation, Taiwan’s defense strategy prioritizes coastal security and USVs could play an essential role.
Ukraine’s success operating USVs against Russia’s Black Sea fleet has demonstrated their strategic value in disrupting naval operations. Given Taiwan’s geography, its defense strategy must begin offshore, making USVs an integral part of the asymmetric warfare approach. At Taitronics, companies like Thunder Tiger and Kunway displayed multipurpose USV products and prototypes, signaling that Taiwan is already moving in this direction.
Despite these advancements, Taiwan faces a significant challenge in fully entering the global drone market: diplomatic isolation. Since the 1990s, Taiwan has only been able to purchase weapons systems from the US, without an opportunity to sell its own defense products internationally, notwithstanding donations to diplomatic allies. This lack of market access restricts Taiwan’s defense industry. Selling products abroad is crucial because it funds further research, reduces per-unit costs, and provides valuable real-world feedback on the tactical and strategic effectiveness of Taiwan’s systems. Without international buyers, Taiwan’s drone industry might struggle to sustain its growth and innovation over the long term.
A practical solution for Taiwan is to engage in international cooperation. Taiwan could overcome its diplomatic limitations by collaborating with countries with established market access and combat experience. Before Taitronics, Taiwan External Trade Development Council chairman James Huang (黃志芳) mentioned that buyers from 258 companies across 32 countries — including the US, Turkey, Japan and Israel — were expected to attend. Taiwan’s government has also begun inviting foreign companies to partner with local manufacturers. This cooperation would not only open up new markets for Taiwan’s drones, but also further strengthen a global non-Chinese supply chain that is becoming increasingly crucial in defense and commercial sectors alike.
It is clear that Taiwan’s drone sector stands at a pivotal juncture. The country possesses the technological expertise, industrial capacity and strategic necessity to become a substantial player in the drone market. However, Taiwan must bolster its domestic capabilities and pursue creative solutions to its diplomatic challenges to reach its full potential. Partnerships with international allies and a strengthened non-Chinese supply chain would be key to Taiwan’s success. The progress displayed at Taitronics highlights Taiwan’s resolve to advance its drone industry. With sustained focus, Taiwan might soon emerge as a critical alternative in the global supply chain for drone technology.
Harun Talha Ayanoglu is a research associate at the Taiwan Center for Security Studies.
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