The global space and defense industry is undergoing a strategic transformation — from treating space as a force multiplier to claiming it as a domain of sovereign control.

Rapid changes in battlefield tactics have made drones central to "economic attrition warfare," shifting the focus from technical performance to cost and scale. The implications are global: military planners, procurement budgets, and civilian supply chains are all under pressure as countries and manufacturers scramble to stockpile, ramp up production, and rethink manufacturing models.

Ukraine is accelerating efforts to reduce its dependence on China's supply chain, while Taiwanese drone makers expand production in Poland and Lithuania, reshaping Eastern Europe's industrial map and affecting global defense supply chains, export controls, and battlefield logistics as European demand rises and Ukraine urgently seeks alternative sourcing channels abroad.

A European delegation's closed-door talks with Taiwanese industry on counter-drone systems highlight accelerating global security implications as drone warfare evolves rapidly, informed by combat lessons from Ukraine and the Middle East; increased drone proliferation is driving urgent demand for multinational cooperation in technology, strategy, and logistics globally.

Tron Future Tech's successful Ka-band downlink verification for T.MicroSat-1 and T.MicroSat-2 signals progress toward global low-earth-orbit (LEO) communication services, validating Taiwan-made ground terminals and hosted payloads and underscoring potential improvements in satellite rapid-redeployment and space computing reliability for international partners and operators.

Ubiqconn Technology said it moved into the Shalun Artificial Intelligence Industrial Zone and established an R&D base to create Taiwan's first application ecosystem for a collaborative control platform for unmanned vehicles. The company announced this month its relocation to southern Taiwan to strengthen research and development in unmanned vehicles and edge computing, and to support the government's Big South New Silicon Valley initiative.

As AI reshapes industries from healthcare to finance, companies far beyond Silicon Valley are racing to stake their claim — and some of the most ambitious bets are coming from unexpected corners. Sun Yad Construction, a Taiwan-based firm best known for real estate development, is one of them.

Rising raw material prices have pushed up gallium arsenide (GaAs) substrate costs, squeezing a key material used in power amplifiers (PA). Win Semiconductors said that its scale gives it stronger bargaining power, but the company will renegotiate prices with customers if input costs swing sharply.

Taiwan's government is advancing its Five Trusted Industry Sectors program, which identifies semiconductors, AI, defense, security, and next-generation communications as the country's core growth drivers. The push for self-sufficiency in semiconductor materials and equipment has already generated NT$22 billion (US$696.92 million) in new output in 2025, with some of the machinery reportedly shipped to China.

Foxconn's Hon Hai Research Institute has launched its second-generation low-Earth-orbit satellites, PEARL-1A and PEARL-1B, from Vandenberg Space Force Base in California aboard a SpaceX Falcon 9 rocket. The mission has entered an on-orbit validation phase as part of a satellite networking strategy.

The US Space Force completed the deployment of the GPS III generation on April 21 with the launch of the final GPS III satellite from Cape Canaveral Space Force Base, and announced a transition to the next-generation GPS IIIF program for enhanced resilience and capability. The satellite, GPS III-8, was launched after the mission was reassigned from one provider to another following recent booster issues, demonstrating flexibility in national security launch planning.