Taiwan is seeking to establish its presence in the field of drones

Taiwan’s drone exports are experiencing a major boom, driven by the war in Ukraine, as Taiwanese companies seek a share in the fast-growing global market for drones.

Demand for low-cost drones, used for reconnaissance and attacks, is increasing as governments around the world increase defense spending in the face of escalating conflicts.

Taiwan is a relatively new player in this increasingly competitive industry, and its strategy is to be an “Asian hub” for producing drones and their components free of Chinese materials.

This means that its planes could be three times more expensive than its Chinese competitors.

DJI in China is considered the largest manufacturer in the world in this field, and it seems to benefit from its enormous size.

Boom in sales

However, Taiwanese companies recorded a boom in sales with Russia’s war on Ukraine, as both sides used drones on a large scale, which led to increased demand. Chinese restrictions on exporting drones in recent years also opened an opportunity for Taiwanese companies, which were struggling to secure sufficient sales in the domestic market.

“Domestically, there is not enough demand,” said Samara Dwyer, a policy analyst at the Taiwanese government-backed Institute for Research on Democracy, Society and Emerging Technology. “So, Taiwan is expanding internationally to help gain the scale and experience needed to have that capacity and be able to handle any sudden increase in demand in the future.”

Taiwan’s drone exports rose to 181,000 units in the first four months of this year, nearly 20 times more than the same period in 2025, and more than the total for the entire year, according to official trade data.

The vast majority went to the Czech Republic, followed by Poland, and the Research Institute for Democracy, Society and Emerging Technology believes that most units are purchased or financed by NGOs and donated to Ukraine.

Financial obstacles

For his part, Max Lu, president of Aero Sur X, which manufactures military and dual-use drones, said that Taiwanese companies were forced to go abroad to maintain their ability to survive.

He added that although Taiwan is trying to build a domestic drone industry, financial hurdles in parliament, which is controlled by the opposition, mean government demands are not keeping up.

Lu explained: “If we do not have the local demand, government support, or budget, how can we maintain the production line?” He continued: “This is the reason that drives me to visit Ukraine and Poland, to let them know that we have this or that, and that our production capabilities are still available.”

Global power

Taiwan is a global powerhouse in artificial intelligence technology and semiconductor chip manufacturing, and it hopes to leverage this expertise in the drone industry. The island aims to reach a monthly production capacity of 100,000 drones by 2030, compared to its previous goal of 15,000 drones by 2028.

Industrial Development Administration Director-General Chiu Chiu-hui said the “vast majority” of Taiwan’s drone exports are not intended for military purposes, but several industry insiders said they suspect most of them are not.

Taiwan wants to be able to produce enough drones itself to repel a potential attack, and integrate into global drone supply chains, as it did with chips.

But the government’s plan to purchase more than 200,000 locally-made drones, as part of a defense spending proposal of nearly $40 billion, did not receive support in Parliament, hindering progress in this regard.

Taiwanese companies also face challenges breaking into a market already dominated by China, and their drones and components lack battlefield effectiveness.

Practical application

In the same context, Marcin Jerzewski, head of the Taiwan office of the European Values ​​Center for Security Policy, said: “Although it is difficult to question Taiwan’s industrial prowess, it is all about the issue of practical application,” asking: “Will Taiwan’s drones be ready for combat?”

Another issue is that Ukraine, which has become one of the world’s most advanced drone manufacturing centers, may not need Taiwanese drones once the conflict ends, and floods the market with its own home-made drones.

About “The Japan Times”

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Fierce competition

Colin Koh, a military expert at the Rajaratnam School of International Studies in Singapore, said that competition in the field of manufacturing drones is “fierce and intensifying rapidly,” adding: “Taiwan will have to find its niche.”

For his part, Artur Savchi, an analyst at the Snake Island Research Institute in Ukraine, said that the area in which Taiwan can compete is “microcomponents such as lithium-ion cells.”

. Taiwan is a relatively new player in the drone industry, and its strategy is to be an “Asian hub” for drone production.