The Pentagon has deployed more than 100,000 AI agents through its GenAI.mil platform, marking a broader shift toward algorithm-driven warfare and expanding the US military's push into AI-powered combat operations.

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.

In the fast-moving and often noisy world of AI, what truly merits attention? MIT Technology Review has long tracked the field's evolution to map its next directions. Their latest annual insight highlights 10 key themes that capture major AI trends, breakthroughs, and shifts in power dynamics driving innovation today and shaping tomorrow's possibilities.

Ghost Robotics, a leading US maker of robotic dogs, has confirmed collaboration with Taiwanese manufacturers to eliminate reliance on the red supply chain. Beyond adoption by the US Department of Defense, Ghost Robotics is targeting Taiwan's military needs for unmanned capabilities. The Ministry of National Defense (MND) recently announced that Taiwan's armed forces have comprehensive plans for unmanned vehicles across land, sea, and air domains. This includes introducing quadruped robotic dogs designed for deep-area and urban combat missions such as reconnaissance, enemy elimination, and logistics support.

Taiwan's military-industrial sector, led by the National Chung-Shan Institute of Science & Technology (NCSIST), recently signed a memorandum of understanding (MOU) with Taiwan's Industrial Technology Research Institute (ITRI) to accelerate the development of unmanned technology.

Taiwan's Aerospace Industrial Development Corporation (AIDC) is fast-tracking its transition from a supporting aerospace contractor into a full-fledged drone system provider, aiming to capture growing opportunities in both domestic defense programs and the global unmanned vehicle market.

Benefiting from strong AI high-frequency, high-speed transmission and communications infrastructure demand, TXC reported robust AI optical communication orders in the first quarter of 2026, driving its highest-ever quarterly revenue. The company's March 2026 revenue reached NT$1.1 billion (approx. US$35.3 million), up 2.7% year-over-year; cumulative revenue for the first three months of 2026 hit NT$3.3 billion, a 5.5% annual increase and a record for this period.

"The drone is not the weapon. The infrastructure to build it is." This statement, made by Ukrainian president Volodymyr Zelenskyy on March 31, 2026, encapsulates the direction of recent US policy reforms as America strives to establish a large-scale, low-cost, and fast-iterating drone industry similar to Ukraine's. The US aims to simultaneously develop military and commercial markets while eliminating reliance on Chinese supply chains and catching up with China's small- and medium-sized drone manufacturing capabilities.

Taiwan's Aerospace Industrial Development Corporation (AIDC) is facing short-term operational pressure, with supply chain delays hitting its Brave Eagle advanced trainer jet program and setbacks pertaining to US preferential procurement policies. While deliveries were delayed in 2024 and 2025, AIDC has been actively offsetting these setbacks by expanding military aircraft maintenance, repair, and overhaul (MRO) services alongside its civilian aviation business. The company currently holds NT$22 billion (US$699 million) in confirmed orders spanning defense, civil aviation, and technology services, with senior management projecting total contracts to exceed NT$100 billion (US$3.18 billion) over the next five years.

Taiwan's manufacturers are no longer content with making sportswear and bicycle parts. Faced with margin pressure and slowing demand in traditional end markets, a growing number of the island's textile and composite materials makers are repositioning themselves as suppliers to the aerospace, defense, and drone industries — sectors that demand premium materials, carry long contract cycles, and are largely insulated from the price wars that have squeezed conventional manufacturing. Early movers are already showing results.

The US National Security Agency (NSA) is using Anthropic's advanced AI model, Mythos Preview, even after the Department of Defense (DoD) formally designated the company a "supply chain risk," highlighting a growing tension between national security policy and operational cybersecurity needs.

Following up on the previous article, this piece focuses on Texas, where the state has long offered attractive incentives to lure high-tech industries. Now, Texas is extending its reach to defense sectors, including unmanned aerial vehicles (UAVs) and counter-UAS (C-UAS) autonomous systems.

Amid surging demand from low-Earth orbit satellites, aerospace, and defense, Parpro Corporation expects a sharp acceleration in core business growth in 2026, supported by a maturing North American manufacturing footprint. The company forecasts that full-year profits could rise from prior years, with gross margins holding near 20%.

Google is in talks with the US Department of Defense that would allow the Pentagon to use the company's Gemini AI models for classified purposes, according to The Information. If the deal comes to fruition, it could represent a deepening of ties between Google and the Pentagon, which is seeking AI partners after its falling out with Anthropic in recent months.

Ghost Robotics, a US supplier of quadruped robots to the Department of Defense, is partnering with Taiwanese manufacturers to localize production. The collaboration aims to reduce reliance on Chinese supply chains and has completed an initial review of Taiwan's manufacturing base, according to industry sources. The partnership is expected to enter a joint development phase later this year.

AI and quantum computing are converging — and the geopolitical consequences are profound. At the GITEX AI Asia forum, industry experts argued that this integration goes beyond a technological breakthrough. It is reshaping national competitiveness and strategic deterrence.

Transcom Technology expects flat full-year revenue for 2026 amid stalled progress in Taiwan's defense budget, which is potentially delaying deliveries of Gong-3 and Gong-4 missile systems. A first mass-production order for a high-frequency SSPA module from an Indian client, however, could help the company expand its international revenue share to 30%.

Winmate, an industrial PC (IPC) provider, has reported record-high revenue for March 2026 as global defense projects accelerate procurement and delivery schedules alongside growing demand for edge AI computing platforms. The company is actively preparing materials and ramping up production for the second half of 2026, maintaining an optimistic outlook for full-year 2026 growth.

Amid sustained Middle East tensions, the US is redirecting strategic attention to the Indo-Pacific region, advancing a defense industrial network among first island chain partners. Through the Partnership for Indo-Pacific Industrial Resilience (PIPIR), Washington is spearheading a shift toward localized production and allied coordination to effectively decouple regional defense networks from Chinese supply chains.

The "brain" of a drone plays a critical role in flight missions. While Taiwanese manufacturers have advantages in drone hardware production, integrating the core control systems remains a challenge.

The drone industry is no longer a niche corner of the defense world — it has become a full-blown industrial race. Across the US, states are competing to attract manufacturers, research centers, and defense contractors as autonomous aerial systems move from battlefield applications toward broader commercial use. The stakes are significant: drone production corridors bring high-wage jobs, federal research dollars, and long-term anchor tenants in the form of defense primes and tech startups alike. Yet beneath the headline investments lies a more nuanced picture.

Northrop Grumman's Microelectronics Center has announced a breakthrough in diamond-based receiver protection components after a device withstood more than 100 watts of power in extreme high-power testing — more than double the tolerance of existing comparable products — highlighting diamond's potential role in future military radio-frequency systems worldwide.

As the global AI arms race intensifies, Taiwan is positioning itself as the primary AI partner for nations besides the US and China. Wedged between these two geopolitical giants, Taiwan is leveraging its dominance in AI servers and semiconductors to foster deeper collaborations with Germany, France, and neighboring nations.