The defense sector, once a tightly controlled and exclusive industry with high entry barriers, is opening up amid US-China tensions and rising geopolitical conflicts. This realignment of global supply chains isn't just reshaping the tech sector—it's also creating new opportunities for companies eager to break into the high-margin defense market.

US-Taiwan cooperation on developing an autonomous defense supply chain in the drone sector is accelerating, as two delegations of American drone industry representatives visited Taiwan in late September and early October.

Taiwan is gearing up to launch its 6G commercial trial network in 2028, supported by a government-approved five-year funding plan focused on advancing key technologies in non-terrestrial networks (NTN). This initiative aims to help Taiwan's industry, academia, and research sectors secure a foothold in next-generation communications and lay the groundwork for practical future applications.

Following the visit of 26 US drone organizations at the end of September, Taiwan-US collaboration has taken another step forward. The newly established "Taiwan Drone Excellence Overseas Business Alliance" has welcomed its first cooperative partner.

Amid the rise of generative AI and global supply chain restructuring, Taiwan's exports to the United States and ASEAN have surged to unprecedented levels. In August 2024, Taiwan's exports to the US reached a record US$11.89 billion, with cumulative exports for January to August hitting all-time highs of US$75.45 billion to the US and US$56.33 billion to ASEAN. Premier Jung-Tai Cho emphasized the need for Taiwan to enhance supply chain resilience in light of these developments.

Airlines worldwide are staring down a supply chain crisis that shows no sign of abating in 2024. As the industry attempts to recover from pandemic shocks, material shortages, labor constraints, and delivery delays are grounding growth ambitions and putting profitability under pressure.

StarLux Airlines chairman Kuo-Wei Chang stated that with Taiwan's population of 23 million, there is little demand for a third national airline if solely catering to the domestic market. However, he emphasized that Taiwan's strategic geographic location in the Asia-Pacific region makes it a crucial hub, noting that its potential in the transit market has been significantly undervalued for years.

Taiwan's homegrown Beyond 5G (B5G) low-Earth orbit (LEO) satellite program is facing setbacks, with communication payload performance falling short of expectations and project timelines delayed. Criticism has mounted, with the Industrial Technology Research Institute (ITRI) at the center of the controversy.

A list of "Accredited Suppliers" for semiconductor design, wafer foundry, packaging, and testing, among other services, was recently published by the Defense Microelectronics Activity (DEMA) of the US Department of Defense (DoD). By supplying to the recognized supply chain, which includes key firms such as GlobalFoundries, IBM, SkyWater Technology, and Northrop Grumman, Taiwan-based firms are attempting to secure indirect orders.

In a significant move to strengthen defense ties, a US drone and counter-drone delegation recently visited Taipei, exploring supply chain collaboration with Taiwan's burgeoning unmanned aerial systems (UAS) sector. Simultaneously, Taiwan launched the "Taiwan Excellence UAS Global Business Alliance," bringing together 50 companies to expand its drone industry's international footprint.

The defense sector has long been a significant contributor to global carbon emissions, and now, according to Dr. Shr-Yi Chin, an expert in sustainability and carbon management, it's time for the industry to face the challenge head-on. Speaking on the topic of sustainability, he emphasized the urgent need for the defense industry to take serious action toward reducing its carbon footprint, which is responsible for a significant portion of many nations' overall emissions.