Democratic Progressive Party (DPP) legislators yesterday proposed a draft act on Taiwan’s drone industry to spearhead domestic industries’ transition into the national defense supply chain.
The legislators proposed a project to fund the domestic drone industry for NT$550 billion (US$17.49 billion) over five years, DPP caucus chief executive Chung Chia-pin (鍾佳濱) told a news conference, saying that the move is similar to the nation’s investment in Taiwan Semiconductor Manufacturing Co (TSMC), and the aim is to grow the drone industry into another success story.
The move would bypass legal restrictions and help foster a new national industry in the shortest time possible, Chung said.
Photo courtesy of Chung’s office
Chung criticized the opposition parties for not providing funds for drone development.
When the legislature passed the Special Statute for the Procurement of Defense Resilience and Asymmetric Combat Capability Program (保衛國家安全及強化不對稱戰力計畫採購特別條例) on May 8, Chinese Nationalist Party (KMT) and Taiwan People’s Party legislators excluded NT$470 billion, of which significant portion was allotted to drone development.
The limitations would remove local defense sourcing options, such as the commercial purchase and contract manufacturing of drones, Chung said, adding that it is unreasonable to miss an opportunity to develop a domestic drone supply chain.
Chung cited previous examples of how the government supported the personal computer and bicycle industries, and said that all components needed for drone manufacturing are within the capabilities of Taiwanese small and medium-sized enterprises.
There is no reason why Taiwan, which has a better supply chain than Ukraine, a leading drone manufacturer that has been able to produce 5 million drones, could not do the same by using its electronics industry, he said.
The industry lacks clear legal guidance and a competent authority to oversee its operations, and the proposal intends to address these issues, he added.
Taiwan Association of Machinery Industry secretary-general Hsu Wen-tung (許文通) said a memorandum of understanding between the association and the Chungshan Institute of Science and Technology (CSIST), signed on April 21, would combine the national defense capabilities of the institute and the manufacturing capabilities of the association, to bolster national security resilience and create commercial value.
Ministry of Economic Affairs official Ho Hsiang-wei (何祥瑋) said the ministry has set up trial locations and regulatory measures in Tainan’s Lioujia District (六甲), and launched a special project to provide research and development grants to domestic industries.
Industrial Development Administration Deputy Director-General Lu Wen-tsan (盧文燦) said the drone industry’s value has grown to NT$15.9 billion this year from NT$5 billion in 2024.
Export value grew to NT$4.6 billion in the first quarter of this year from NT$140 million in 2024, Lu said, adding that Taiwanese drones saw orders exceeding US$100 million at the XPONENTIAL show earlier this month in Detroit, Michigan.
Asked about the bill, Major General Weng Yu-heng (翁予恒) of the Ministry of National Defense’s Department of Strategic Planning said that upgrading the drone industry would be highly beneficial for enhancing national defense, advancing defense autonomy and building a “non-red” supply chain.
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