Amid escalating geopolitical tensions, global defense spending is surging, transforming the sector into a strategic growth pillar alongside semiconductors. For Taiwan's ChenFull Precision Co., these two industries form the backbone of its operations. While the company's defense segment remains modest in scale, its gross margin approaches 70%—a remarkable figure that outpaces all other business units and now serves as a critical driver of ChenFull's broader corporate growth.

Europe's military-industrial supply chain is experiencing renewed momentum as US President Donald Trump's hardline stance on NATO defense budgets continues to reshape spending priorities across the EU. Taiwanese manufacturer MilDef Crete, specializing in rugged industrial computers, has indicated that increased defense spending within the bloc, initially driven by policies from the Trump administration, has evolved into a long-term structural trend. This heightened military expenditure is anticipated to continue beyond the conclusion of the Russia-Ukraine conflict.

Taiwan military-grade power amplifier maker Transcom said it completed testing and certification for multiple products this year, including high-frequency solid state power amplifiers, up-conversion Doppler amplifiers, and high-frequency receivers. The company expects to receive military product certification in the second half of 2025.

Third-generation semiconductor GaN-on-SiC has emerged as a critical battleground in the US-China technology rivalry, with both nations racing to develop advanced military radar systems capable of detecting stealth aircraft.

As Lee Jae-myung takes office as South Korea's 21st President, the global tech and industry community is closely monitoring his ambitious economic agenda. Among the key sectors under scrutiny are semiconductors, batteries, shipbuilding, and defense industries that Lee pledged to nurture aggressively during his campaign.

Russia's SJ-100 regional aircraft completed its maiden flight with a domestic PD-8 engine in April 2025, marking a milestone in the country's drive to replace Western components under international sanctions.

Ukraine's recent drone operation, dubbed "Spider Web," has sent shockwaves through military establishments worldwide after successfully penetrating deep into Russian territory and destroying dozens of aircraft worth billions of dollars. The audacious attack demonstrates how inexpensive technology is fundamentally reshaping modern warfare economics and forcing a complete rethink of military strategy.

US Defense Secretary Pete Hegseth's recent Indo-Pacific security address highlighted two strategic priorities that underscore Taiwan's growing importance in regional defense planning: maritime drone capabilities and secure component supply chains.

Taiwan's National Chung-Shan Institute of Science and Technology will host maritime trials for unmanned surface vehicles on June 17-18, 2025, with 13 domestic and international companies participating in what officials describe as a technical assessment rather than a competition.

As the Russia-Ukraine war enters its third year, unmanned aerial vehicles (UAVs) have solidified their role as a pivotal force in both offensive and defensive operations. Recently, fiber-optic-guided drones, known for their exceptional resistance to electronic warfare interference, have surged in deployment across the Ukrainian battlefield, emerging as critical assets for both sides' military operations.

The Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA) led a number of Taiwanese drone companies to participate in the Xponential 2025 exhibition in Houston, Texas, with the hope of further expanding drone cooperation opportunities between Taiwan and the US.

The year 2025 marks a pivotal moment for humanoid robotics as the technology transitions from science fiction to commercial reality. China hosted the world's first competitive humanoid robot combat tournament on May 25, 2025, in Hangzhou, signaling the industry's rapid evolution beyond traditional applications.

China has quietly relaxed export restrictions on rare earth elements crucial for drone manufacturing after the controls threatened to derail the industry's growth, according to people familiar with the matter. The move comes as both Beijing and Washington face mounting pressure from material shortages and stockpile risks.

The global unmanned vehicle and autonomous systems industry converged at the prestigious Xponential 2025 event, held from May 19 to 22 in Houston, Texas. Taiwan's Coretronic Intelligent Robotics Corporation (CIRC), a subsidiary of Coretronic Group, presented its latest self-developed Hybrid Vertical Take-Off and Landing (HVTOL) drone under the theme "Smart Drone & Trusted Partner," underscoring Taiwan's growing prowess and competitiveness in high-performance unmanned systems.

Taiwan's National Chung-Shan Institute of Science and Technology acknowledged finding Chinese-made parts in military drones under development, highlighting the island's struggle to eliminate mainland suppliers from its defense supply chains.

National Aerospace Fasteners Corporation (NAFCO) is positioned for robust performance in 2025, benefiting from Boeing's order rebound and supply chain disruptions affecting competitors, according to General Manager Alvin Lin.

Boeing landed its largest-ever single order as Qatar Airways agreed to purchase 210 wide-body aircraft during US President Donald Trump's recent Middle East visit. The deal, announced on April 14, includes 130 Dreamliners and 30 777X jets, with options for 50 additional aircraft, alongside an agreement with GE Aerospace for over 400 engines.

Taiwan's industrial PC specialist Parpro reported a sharp year-over-year profit recovery for the first quarter of 2025, citing effective operational restructuring and a revamped product strategy. The company began a turnaround program in 2024, focusing on cost efficiency and portfolio realignment, helping revenue and profit rebound from pandemic-era lows.

Recent escalations in the India-Pakistan conflict have ignited intense aerial skirmishes, marked not only by modern fighter jets but also by sustained drone assaults. Contrary to earlier industry forecasts anticipating a cooling drone market as conflicts in Ukraine and the Middle East wane, the emergence of this new frontline has sustained strong demand for drones, especially attack models.

Intelligent Epitaxy Technology (IntelliEPI), a supplier of epitaxial wafers, is positioned for strong performance in 2025, driven by increasing demand in the artificial intelligence and defense sectors. The company's chairman, Yung-Chung Kao, anticipates moderate operational growth in the second quarter of 2025, supported by a positive outlook for orders. However, the supply of indium phosphide (InP) substrates remains a critical variable, with shipments expected to remain balanced. The company's overarching goal is to achieve an all-time revenue peak for the year.

Palmer Luckey, once celebrated as the prodigy behind Oculus and virtual reality's mainstream breakthrough, found himself abruptly cast out of Silicon Valley's inner circle following his political donations during the 2016 US presidential election. After leaving Facebook (now Meta), Luckey established Anduril Industries, a defense technology company that quickly emerged as a major force in advancing military innovation.

In a recent speech, Palmer Luckey, the innovative force behind defense technology firm Anduril Industries, invoked a hypothetical Taiwan Strait conflict to underscore the pivotal role of artificial intelligence (AI) in modern warfare.

The US is charting a new course for defense spending, with President Donald Trump's administration proposing a 13% increase that would push the Pentagon's 2026 budget to an unprecedented US$1.01 trillion. While funding for medical research and education faces deep cuts, the White House is prioritizing investments to strengthen national security, deter Chinese aggression in the Indo-Pacific, and revitalize America's defense industrial base. The move aligns with a global trend of escalating military budgets, as nations respond to heightened geopolitical tensions.

As China imposed export controls on seven critical medium and heavy rare earth elements in early April, a buying frenzy has gripped the international rare earth market. Within a month, prices for terbium and dysprosium have more than doubled, marking the steepest monthly surge in nearly a decade. The fallout is global. Analysts say the price spike is adding new fuel to US-China trade tensions and raising alarms for manufacturers of electric vehicles, robotics, and military equipment. Industry experts warn that the long-term stability of these supply chains is now at risk, as companies scramble to secure the raw materials critical for next-generation technology.