Taiwan, with its critical geopolitical position, has an opportunity to secure key positions in the global drone supply chain not dominated by Chinese businesses. Thunder Tiger (TT), a major drone manufacturer, supports Taiwan-based producers but acknowledges China's long-standing dominance in the drone market due to government support. China still holds two key module technologies, presenting challenges for other countries to quickly detach from Chinese suppliers.
Hawk Yang, CTO of TT, explains that drones would be prohibitively expensive without these key components. A drone made in China might cost tens of thousands of New Taiwan Dollars, while a comparable drone from other companies could cost hundreds of thousands due to DJI's advantage in key components.
Challenges and progress in Taiwan's drone industry
Industry insiders note that Taiwan-based manufacturers have nearly achieved autonomy in key drone technologies but still face challenges in camera gimbals and communication modules. The communication module, in particular, involves advanced encryption systems and has a range of 5-10 kilometers or more, requiring specialized development.
The stability of aerial drone imaging largely depends on the gimbal's structure, responsiveness, and power. Yang explains that smaller gimbal system modules allow for smaller drones, which are expected to be the mainstream market in the future. This presents a significant need for investigation into non-Chinese supply chains.
Taiwan's market currently supports drones up to 2 kilograms, while China has models weighing less than 1 kilogram, some as light as a few grams. Yang notes that DJI can invest hundreds of millions in developing specialized chips with Chinese government support, an investment scale that would burden most small and medium enterprises. National policy support is urgently needed to close this gap.
Looking ahead: Taiwan's drone exhibition and market trends
The Taiwan External Trade Development Council (TAITRA) has forecast that Taiwan will host an international drone and unmanned vehicle exhibition. TAITRA will hold a press conference on August 28 to discuss future trends, featuring TT and other Taiwan-based firms like Taiwan Drone 100 to explore the current state of global drone development and market demands.
Despite the challenges, Taiwan has the potential to compete with Chinese firms in the global drone market due to its expertise in manufacturing and cost-reduction measures. However, closing the technological gap and securing government support will be crucial for Taiwan to establish itself as a significant player in the global drone industry.
