Taiwan’s drone supply chain faces growing pressure as the United States ramps up efforts to dominate the global UAV market. Recent U.S. policies promote local production and reduce reliance on Chinese-made drones. These changes could isolate Taiwan’s drone sector from key defense and tech partnerships. The U.S. government has launched major initiatives to boost its drone industry. New rules now prioritize military and federal use of American-built drones. This shift raises concerns that allies like Taiwan may get left out of critical cooperation efforts.
Tiunn Hong-lun, a security expert at a leading think tank, warned of serious consequences for Taiwan. He said Taiwan risks being excluded during emergencies if it lacks co-production agreements with the U.S. Taiwan’s drone supply chain, he added, must grow stronger to meet national defense needs. Relying on imports could become dangerous, especially during a Taiwan Strait conflict. Therefore, building a self-reliant industry has become a national priority. Experts believe that Taiwan must quickly reduce its dependence on foreign components.
The island has already made progress. In a bold move, the government launched a massive drone procurement plan. The goal is to produce 180,000 drones annually within the next few years. Officials expect this to generate billions in local economic value. Production levels, however, remain low. The current output is only 8,000 to 10,000 units each year. This number falls far short of the country’s target. Nonetheless, exports have grown, showing strong international demand for Taiwanese UAVs.
Policy experts believe Taiwan still has a chance to catch up. Cathy Fang, another analyst, emphasized Taiwan’s strengths in electronics and semiconductors. These assets give it an edge in building secure and reliable drone systems. She suggested several solutions to support Taiwan’s drone supply chain. These include creating joint research programs with allies and building final assembly facilities in Taiwan. Certification programs would also open doors to future defense contracts. To remain competitive, Taiwan needs more than just local investment. It requires strong international support and clear integration into allied drone ecosystems. Without this, Taiwan’s drone supply chain may struggle to survive the global shift in UAV technology.
