Taiwan is leaving room for Chinese-made components in parts of its commercial drone supply chain, with non-critical items such as passive components, magnets, and optical lenses not required to be sourced entirely outside China even as the government pushes for non-China sourcing of critical technologies.

Following the Legislative Yuan's passage of the Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry and its subsequent countersignature by the Executive Yuan, Taiwan's drone industry is preparing for a potential new wave of government procurement, with tenders possibly emerging by the end of 2026. While the expected domestic orders could provide a boost, Taiwanese drone manufacturers are also accelerating overseas expansion to diversify their customer base and reduce reliance on local procurement.