Taiwan's drone supply chain is notching fresh wins, with downstream players such as Thunder Tiger and Taiwan's Aerospace Industrial Development Corporation (AIDC) continuing to secure orders while upstream suppliers, especially chipmakers, are quietly expanding their deployments and market share. For military and commercial drones in particular, Taiwanese chip vendors are now working closely with local customers as well as customers in Europe and the US to integrate a range of on-board image-processing and AI recognition modules, plus applications such as flight control and ground control stations.

Anduril Industries has sharply expanded its Taiwan supply chain, increasing direct purchases from local suppliers 15-fold in 2025 as the US defense technology company deepens cooperation with Taiwanese partners on drones and other autonomous defense systems.

China Airlines said demand tied to artificial intelligence (AI) infrastructure and semiconductor shipments is helping fuel a strong rebound in air cargo, underscoring Taiwan's growing importance at the center of the global technology supply chain.

China is building a more formal safety and regulatory framework for its low-altitude economy, as drones, electric vertical takeoff and landing aircraft, and other aerial services move closer to commercial use.

Thunder Tiger said on May 26 that it has signed a memorandum of understanding (MoU) with Elan Microelectronics to jointly develop AI guidance, image-recognition, and communications technologies for drones, marking a step in the drone maker's shift beyond unmanned vehicle system integration.