Drone companies from Taiwan and the U.S. are exploring ways to work together in a market dominated by China, bringing together Taiwanese enterprises and more than two dozen American companies and officials this week in Taipei.
Attacks by swarms of drones have become an almost daily occurrence in Russia’s war in Ukraine, with both Kyiv and Moscow using unmanned aerial vehicles, or UAVs, to carry out strikes and defend themselves from attacks.
As the threat China poses to Taiwan grows, many see drones playing a crucial role in a potential conflict there as well. China’s leader, Xi Jinping, has tasked his troops to be prepared for an invasion of Taiwan by 2027.
And with Chinese companies dominating the market and critical resources used in making drones, analysts say it is important for Taiwan and the U.S. to find ways to create a China-free supply chain.
At a drone expo at National Taiwan University in Taipei this week, hundreds of Taiwanese producers met with several officials from the U.S. Department of Defense and Raymond Greene, director of the American Institute in Taiwan, which serves as the de facto U.S. embassy on the island.
Patrick Mason, the deputy assistant secretary of the Army for defense exports and cooperation, and Andrew Hong, deputy director of the cyber portfolio of the Defense Department’s Defense Innovation Unit, or DIU, spoke at the expo. Mason spoke about “The Pathway to U.S.-Taiwan Defense Industrial Cooperation” and Hong’s remarks centered on “Defense Innovation with Taiwan.”
For U.S. drone companies, the forum offered the potential to expand business ventures with Taiwan and grow the bilateral trade partnership, according to a statement from the American Institute in Taiwan on Wednesday.
Demand for drone technology in Taiwan is large, especially given China’s drone production prowess. Chinese drone company DJI held 76% of the consumer market for household drones in 2021. These drones have also been deployed on the battlefield in places like Ukraine and Myanmar, a practice that the Chinese government and DJI have condemned.
Hsu Chih-hsiang, an assistant researcher at the Institute of National Defense and Security Research in Taipei, described drones as “combat force-multipliers,” and explained that, even in peacetime, China has already begun sending large drones into Taiwanese territory and even uses small civilian drones to hover in Taiwanese airspace in the Kinmen Islands.
In 2022, former Taiwanese President Tsai Ing-wen made the drone industry a development priority in Taiwan. Since then, Taiwan has established the “Drone National Team” program, subsidizing domestic production of these systems.
Taiwanese Minister of National Defense Wellington Koo revealed in mid-September that Taiwan would procure 3,422 units of six types of domestically produced military drones, including mini-drones, before 2028, and that Taiwan would also separately acquire two types of missile-type attack drones, totaling 976 units, before 2026, to enhance precision strikes and anti-armor capabilities.
Wang Shiow-wen, who is also an assistant researcher at the Institute of National Defense and Security Research, said American support of Taiwanese drone modernization presents an opportunity for Taiwan to break through barriers in production capacity and ensure the security of the supply chain for drones.
Taiwan’s government has set a goal for domestic manufacturers to produce 15,000 drones per month by 2028. That is three times current production levels, according to Taiwan’s government-funded Central News Agency.
Ja Ian Chong, a political scientist at the National University of Singapore, said the three most important considerations for the U.S. and Taiwan in the future of drone production without Chinese components are cost, mass production capacity, and the impact that this might have on American and Taiwanese budgets, technology transfer and scientific development.
China strongly opposes collaboration and engagement between Taiwan and the United States, and it was watching the gathering in Taipei closely.
Chinese state media criticized the visit to Taiwan by the delegation of American companies and defense officials, as well as efforts to create a “China-free” drone supply chain.
Liu Heping, a Chinese commentator, said that by attempting to make Taiwan the “democratic drone supply chain center,” the United States and Taiwan were preparing for a “vigorous arms race” with China.
Katherine Michaelson contributed to this report.
