Taiwan is to set up a large uncrewed aerial vehicle (UAV) testing facility in Chiayi County to help establish its drone supply chain with a greater share of the global market, Industrial Development Administration (IDA) Deputy Director-General Tsou Yu-hsin (鄒宇新) said.
The Ministry of Economic Affairs (MOEA) established an uncrewed aircraft system development program in the southern county at the end of last year with the aim of establishing a hub for drone-related businesses, Tsou said in a recent media interview.
As part of the program, an office, located in the Asia UAV AI Innovation Application R&D Center, assists companies working in the drone business, he said.
Photo: Tsai Tsung-hsun, Taipei Times
About 50 companies are based in the drone research and development center, and a nearby small testing facility allows products to be tested as soon as they are developed, Tsou said.
“Chiayi is ready to act as a hub for the drone industry as it has a good foundation for manufacturing,” he said.
“Now, we need a huge facility with larger runways for testing,” Tsou said. “So, we are planning to build a bigger testing venue to boost drone production.”
In addition to the large drone testing facility, an aerospace and drone industrial park big enough for about 100 companies is also being planned, he said. Construction is scheduled to be completed in 2028.
After the Russian invasion of Ukraine, more attention globally has been paid to how drones are used in military scenarios, he said.
China currently dominates the drone market, with Shenzhen-based DJI leading the way with about a 74 percent share of the global consumer drone market, Tsou said.
China’s dominant role has sparked concerns among many democratic countries and led to discussions about establishing a “non-red drone supply chain,” which could create a lot of opportunities for Taiwan, he said.
In September, the MOEA established the Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA), led by Aerospace Industrial Development Corp.
The alliance currently has more than 120 members with a range of specialties, including drone system integration and critical component development.
“The move to form the TEDIBOA is the most efficient way to help Taiwanese drone developers seize on global business opportunities,” Tsou said. “The government is working to help the private sector forge business ties with potential foreign buyers through a G2G [government to government] channel.”
To provide further support to the local drone supply chain, the Ministry of National Defense recently sought suppliers of drones for military use, he said.
Four companies — Taiwan UAV, Evergreen Aviation Technologies Corp, MiTAC Information Technology Corp and Coretronic Intelligent Robotics Corp — were awarded the contract, he said.
They would supply the ministry with 3,422 drones over five years.
In addition, the MOEA has a budget of NT$110 million (US$3.36 million) to provide funding for drone AI imaging and low-cost flight control dashboard use.
The budget is pending approval from the Legislative Yuan and the MOEA’s Department of Industrial Technology.
According to the government, the production value of the local drone industry is expected to hit NT$5 billion this year and rise to NT$40 billion in 2030.
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