The aviation supply chain has seen some relief from bottlenecks, but new aircraft orders continue to outpace production capacity, keeping pressure on deliveries. In response, airlines are extending leases on older jets to mitigate fleet shortages, driving up demand for after-sales services and maintenance capacity.
The EU convened a non-official defense summit on February 3, 2025, focusing on strengthening Europe's military capabilities against Russia and other threats. Given the pressing need for autonomous defense systems, the EU plans to invest EUR500 billion (US$516.33 billion) over the next decade to bolster its military industry. Following the prominent role of drones in Russia's invasion of Ukraine in 2022, market observers anticipate substantial growth in Europe's drone market as conventional warfare becomes increasingly technology-driven, with small unmanned aircraft emerging as a crucial segment.
Submarine technology has evolved dramatically with the advancement of technology, transforming naval tactics and global maritime security. From the first US Navy submarine, the USS Holland (SS-1), commissioned in 1900, to modern nuclear-powered submarines equipped with artificial intelligence (AI), the development of submarines has reshaped military operations and strategic maritime initiatives worldwide.
Amid the rapid development of dual-use technologies, the Japanese government has announced intensified regulatory measures on critical technology exports. On January 31, 2025, Japan's Ministry of Economy, Trade, and Industry (METI) revealed a revision to the Foreign Exchange and Foreign Trade Law (FEFTA) to prevent essential technologies from being diverted for military use. This regulatory overhaul targets 21 products, including advanced semiconductors and quantum computers, requiring businesses to obtain prior authorization before export.
As global defense priorities shift in 2025, Taiwan's Aerospace Industrial Development Corp. (AIDC) is positioning drones as strategic assets, leveraging the nation's technological strengths amid heightened regional tensions and evolving military dynamics.
While China implements export bans on key drone components in retaliation, the market has become increasingly volatile. Industry observers note that the drone industry's readiness has not kept pace with the rapid emergence of new competitors. Despite Taiwanese companies actively preparing for market expansion, the timing for significant growth may still be uncertain.
Since assuming office, Donald Trump has drawn global attention with tariff policies and defense strategy influence through protectionism. Dissatisfied with NATO allies' defense spending, Trump has demanded increased budgets, likened by some to a "protection fee." Now, with tariffs largely in place, defense policy appears next on his agenda.
Taiwan's digital infrastructure faced challenges again as two submarine cables connecting Taiwan and the Matsu Islands were completely severed on January 22, marking the latest in a series of disruptions that highlight the vulnerability of critical communication networks in the region.
China is broadening its ambitions from drone supremacy to the aerospace sector, aiming to challenge the dominance of European and American firms. Experts suggest that this endeavor is part of a larger geopolitical strategy where aerospace capabilities are intertwined with national security considerations.
Taiwan's military has awarded a contract to Tron Future Tech for 26 anti-drone systems, marking a significant step in the island's efforts to counter unmanned aerial threats amid rising regional tensions.
Upon Donald Trump's return to the presidency, Taiwan's overseas expansion strategies are attracting significant attention. Jyh-Huei Kuo, Taiwan's Minister of Economic Affairs (MOEA), recently highlighted the opportunities for collaboration between Taiwan and the US in aerospace technology. It will be the top priority for both Taiwan and the US in the future to strengthen partnerships in the aerospace sector.
Intel Foundry has announced the addition of two new defense industrial base (DIB) customers, Trusted Semiconductor Solutions and Reliable MicroSystems, as part of the third phase of the Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) efforts under the Trusted & Assured Microelectronics (T&AM) Program in the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)).
As the Legislative Yuan nears the end of its current session, opposition parties have proposed significant cuts and freezes to the 2025 central government budget. At a press conference on January 16, Premier Jung-tai Cho warned that these reductions would weaken Taiwan in five critical areas: technological development, national security, civil service performance, government communications, and overall national competitiveness.
As Donald Trump prepares to be inaugurated as President of the US on January 20, his controversial campaign statements and post-election remarks have raised alarm among allies in Europe and Asia. Proposals such as imposing higher import tariffs, demanding increased military spending from allies, withdrawing from the World Health Organization (WHO), and even attempting to purchase or annex Greenland have left countries scrambling to assess potential impacts and countermeasures.
Transcom, a provider of military-grade power amplifiers (PA), has disclosed that its revenue for 2024 reached an all-time high. The company's strong sales performance last year was primarily driven by government contracts, satellite communication-related products, and an increase in military drone shipments.
The US Department of Defense (DoD) has added Tencent Holdings, Contemporary Amperex Technology Co., Limited (CATL), and ChangXin Memory Technologies (CXMT) to its blacklist of entities allegedly tied to the Chinese military. This annual update to the Section 1260H list now includes 134 companies, as published on the Federal Register's website.
While the US semiconductor revival extends beyond Intel's prominent efforts, it critically depends on Micron, the country's sole memory chip manufacturer, expanding its domestic production capacity.
Global conflicts have accelerated the integration of emerging technologies into defense strategies, with countries prioritizing supply chain resilience. In Taiwan, President Lai Ching-te's administration's proposal of "five trusted industries" highlights military innovation, strengthening the defense supply chain.
China has added 28 US entities, including Lockheed Martin and General Dynamics, to its export control list, banning dual-use item exports amid the upcoming Trump 2.0 administration and ongoing US-Taiwan arms sales.
A Taiwanese shipbuilder is gaining international attention for its stealth unmanned surface vessel (USV), highlighting the growing market for autonomous naval technology as countries seek to bolster their maritime defense capabilities.
SpaceX and Tesla CEO Elon Musk raised concerns about chip shortages during a discussion with TSMC Chairman C.C. Wei, emphasizing the transformative potential of drones and multifunctional robots. Taiwan's academic sector is spearheading at least 10 humanoid robot projects, with plans for continued expansion.
The US government has launched a national- security investigation into TP-Link, the China-founded router maker whose equipment now dominates the American market and has been targeted in repeated Chinese cyber attacks, people familiar with the matter said.
On December 17, 2024, the US Department of Defense (DoD) confirmed the removal of Advanced Micro-Fabrication Equipment Inc. (AMEC) and IDG Capital from its Chinese Military Companies (CMC) list, effective December 13.
Aegiverse is betting big on fiber-optic gyroscopes (FOG) as military demand for resilient navigation systems surges amid growing drone and satellite deployments. The National Central University spinoff, founded in 2022, is pushing into US and Indian markets while deepening ties with Taiwanese defense contractors.
