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The outbreak of the Russo-Ukraine war in 2022 drew attention to the importance of drones in modern warfare: countries around the world are now increasing investments in this industry. For Taiwan, which is pitted against a much larger enemy, drones are crucial: they can be made cheaply and can do a lot of damage to large expensive platforms like battleships. The government is strengthening supply chains free of Chinese components, and private companies have greatly increased their capabilities, with Taiwanese drone exports to Europe increasing by 40% last year. Let’s find out more.
The drone, equipped with gunpowder, hovers at high speed in the air, locates the target, and quickly swoops down to complete its mission with precision.
This is the Army’s drone unit, conducting flight training with attack drones.
Major Tsai
21st Artillery Command Drone Battalion
In our training, we’ll have it carrying munitions underneath, conducting a live-fire exercise. This is a bomb-dropping type; it’s not a suicide drone, but it’s still an attack drone.
However, did you know that the drones used in these combat exercises were entirely made by Taiwanese manufacturers? The military emphasized a 100% non-red supply chain, boosting Taiwanese companies to showcase their immense capabilities and rapidly capture global markets in just a few short years.
Yu Fu-yang
Taiwan Unmanned Vehicle Alliance
Ukraine actually sourced a large portion of its components from Taiwan for the Russo-Ukraine war. We don’t supply the complete units, but the components are ours. The demand has really boosted our industry.
Fan Wei-i
AbonMax
In the emerging drone market, the non-red supply chains we provide could actually become Taiwan’s next economic shield.
Since 2017, the US has banned the military from using Chinese-made drones on security grounds and has begun to promote "non-red supply chains," which has caused Taiwanese manufacturers to sniff out business opportunities.
Chen Shih-che
Brinno
The US is taking a phased approach; basically, Chinese components cannot be used in major parts right now. Meanwhile, Taiwan’s drone industry—especially in the defense sector—has a 100% total ban on Chinese components. Looking at this market opportunity from the perspective of a private enterprise, I am fully willing to invest our resources here.
Whether it’s creating non-red supply chains in industries or asymmetric warfare capabilities on the front line of national defense, drones may become Taiwan’s next economic shield.
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