In recent years, drones have become crucial components of warfare, evidenced by their use in conflicts worldwide. Taiwan recognizes this strategic reality amid growing fears of a potential Chinese invasion. The island nation is striving to build a domestic drone industry, aiming to produce 180,000 drones annually by 2028. However, progress has been slow, with fewer than 10,000 drones produced in the past year.
Cathy Fang, a policy analyst at the Research Institute for Democracy, Society, and Emerging Technology (DSET), notes that while Taiwan has the capability to manufacture high-quality drones, several "structural challenges" hinder its progress. These include high manufacturing costs, insufficient domestic procurement, and a lack of orders from foreign governments.
The urgency is heightened by threats from China, which is modernizing its military with potential plans for invasion as early as 2027. Military analysts suggest any aggression may begin with extensive assaults by air and sea, making Taiwan’s need for a robust defense strategy increasingly urgent. This strategy anticipates transforming the Taiwan Strait into a "hellscape," where uncrewed aerial and Naval vehicles would disable incoming Chinese forces long enough for allies to provide assistance.
In response, Taiwan’s government initiated the Drone National Team program to enhance collaboration with the local industry. This initiative aims to adopt lessons from Ukraine, where a burgeoning drone sector has been integral to its defense strategy. However, Taiwan faces challenges in competing with established drone manufacturers like DJI due to reliance on costly components, as the island avoids using Chinese tech.
Despite Taiwan’s advanced sectors like batteries and semiconductors, actual drone manufacturing remains constrained. Taiwan lacks specific chip production for drones, relying instead on general-use chips from Qualcomm and Nvidia, which come at higher prices compared to their Chinese counterparts.
Taiwan’s drone makers draw on limited domestic orders, with the defense ministry currently having ordered fewer than 4,000 drones but planning to significantly scale up purchases. Analysts highlight that effective defense spending has become a contentious political issue within Taiwan.
DSET suggests that the U.S. can play a vital role in Taiwan’s drone industry by supporting local manufacturers and facilitating access to the Pentagon’s supplier list. Currently, no Taiwanese company has secured a place on this trusted list, which could mean significant military contracts.
Moreover, the U.S. has sent about 1,000 drones to Taiwan, including smaller loitering munitions and some MQ-9 Reaper drones. DSET recommends that the U.S. develop long-term partnerships with Taiwanese industry to better align defense needs.
Taipei is encouraged to diversify its drone capabilities beyond smaller surveillance models, taking cues from how Russia and Iran produce long-range drones at lower costs. The DSET underscores the need for Taiwan to enhance electronic warfare defenses, particularly against the complex environments of modern warfare.
With Taiwan needing to act quickly, its situation parallels Ukraine’s emergence as a formidable drone maker under dire circumstances. As Taiwan continues in its peacetime mode, experts assert it must not underestimate its potential to innovate and scale up its drone manufacturing capabilities. Such decisions are critical not only for Taiwan’s self-defense but also for countering China’s growing influence in regional drone technology and military preparedness.
