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Jul 29
Column: Taiwan suppliers' path into US Space Force supply chain
As the debate over the US fiscal 2027 defense spending plan to dismantle the Space Development Agency (SDA) continues, the Proliferated Warfighter Space Architecture's (PWSA) transport layer is concentrating around SpaceX, seemingly narrowing the door for suppliers. In reality, however, it marks a shift in the business focus from selling a batch of satellites to supplying continuous replacement components and terminal opportunities that are still up for grabs.
Shield AI and Thunder Tiger Group completed their first autonomous maritime unmanned vehicle swarm demonstration in Taiwan, combining Shield AI's Hivemind AI system with Thunder Tiger's SeaShark unmanned surface vehicles. The test, conducted in Pingtung, showed multiple boats carrying out coordinated intelligence, surveillance, and reconnaissance (ISR) missions without direct human control.
Coretronic said its robotics subsidiary, Coretronic Intelligent Robotics (CIRC), is focusing on four development priorities as a large domestic government drone procurement plan remains unapproved, leaving suppliers facing a demand gap. The company said the strategy is designed to reduce the impact of uncertainty over the government buying schedule on its drone business.
Taiwan's Office of the President announced the rules for the Presidential Cup 2026 Drone Competition on July 28, aiming to cultivate talent in technology applications, encourage industry investment in research and development, promote industrial upgrading, and support Taiwan's economic development.
Taiwan and the United Kingdom have established their first formal partnership focused on the drone industry, with the Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA) signing a memorandum of understanding (MOU) with ADS Group, the UK's trade association for the aerospace, defense, security, and space industries.

Taiwan's Legislative Yuan began a clause-by-clause review on July 27 of the Executive Yuan's draft Special Act for the Procurement of Domestically Developed Defense Unmanned Systems, but ruling and opposition lawmakers remained divided over the proposed procurement framework.

Universal Microwave Technology (UMT), a manufacturer of satellite and millimeter-wave (mmWave) communications components, benefited from continued growth in demand for low Earth orbit (LEO) satellite communications products in the first half of 2026.
Idaho-based Titan Batteries has emerged as a key supplier in the US Drone Dominance Program (DDP), providing customized battery solutions for military drones as the Pentagon accelerates efforts to build a secure and resilient domestic supply chain. The company's focus on localized manufacturing, cybersecurity, and end-to-end traceability aligns with the US Department of Defense's (DoD) drive to reduce dependence on foreign suppliers for critical defense technologies.
Taiwanese aerospace company Aerospace Industrial Development (AIDC) secured new contracts worth more than NT$22 billion (approx. US$680.27 million) with several major aerospace companies for civilian aircraft and engines at the Farnborough International Airshow in the UK.

Gallium arsenide (GaAs) foundry WIN Semiconductors (WIN) expects infrastructure revenue to continue growing in the third quarter of 2026, driven by demand from low Earth orbit (LEO) satellites and other aerospace applications, while shipments of smartphone power amplifiers (PAs) and Wi-Fi products are expected to remain broadly flat or post modest growth.

Indian defense engineering company Paras Defense and Space Technologies said its semiconductor subsidiary, Paras Semiconductors, will invest INR62 billion (approx. US$643.79 million) to establish a semiconductor packaging and testing facility in Madhya Pradesh, as the country expands efforts to build a domestic chip manufacturing ecosystem, according to Reuters, The Economic Times, and Data Quest.

Taiwan's proposed legislation governing unmanned systems remains stalled as competing political parties continue to debate multiple versions of the bill. For the drone industry, however, prolonged uncertainty over the regulatory framework poses a greater challenge than the legislation itself.