Nearly 60 space companies are showcasing their latest innovations at TASTI Expo 2024, demonstrating Taiwan's growing aerospace capabilities. The Taiwan Space Agency (TASA) leads the exhibition with Formosat-8, featuring locally developed components including optical payload, GPSR, satellite computer, power systems, and communication modules.
The largest US drone maker struggles with supply chain disruption after selling drones to Taiwan's fire departments, with current inventory projected to last until spring 2025.
Taiwan is making a determined push into aerospace as part of its "Five Trusted Industry Sectors" initiative, with the sector reaching NT$133.6 billion (US$4.2 billion) in output, returning to pre-pandemic levels. This industry, deemed critical for national defense and technological advancement, is experiencing a renaissance after the severe disruption of 2020-2022.
Jensen Huang recently identified drones as one of three types of robots suitable for mass production, marking his first public statement classifying drones within the robotics ecosystem. This observation follows his earlier assertion that "AI in its most general form is robotic."
Taiwan is making an aggressive push into the global drone market, leveraging its manufacturing prowess and "non-red" supply chain status as Western nations seek alternatives to Chinese providers, according to government officials and industry executives.
Thunder Tiger Technology, a leading drone manufacturer in Taiwan, has revealed impressive achievements at this year's AUSA (Association of the United States Army) Convention and has secured interest from many clients. Additionally, the company is collaborating with Israeli drone optics giant NextVision to expand production.
The Taiwan Drone Excellence Overseas Business Alliance, established in late 2024, has secured Poland as its second "ally" after Oklahoma, US. The partnership aims to advance international drone sales, technology development, supply chain integration, and global competitiveness.
US defense technology companies are increasingly looking to Taiwan as a critical manufacturing base and supply chain partner, as revealed during a recent Arizona-led trade delegation to Taipei. The mission, which included four emerging defense tech firms, highlights growing bilateral cooperation in aerospace and defense amid rising regional tensions.
With heightened US-China tech competition looming ahead of the US presidential election, one outcome seems certain: the rivalry—especially in drones—will only accelerate efforts to reduce dependency on Chinese suppliers. The commercial drone market, in particular, is garnering strong interest as firms eye the gaps left by DJI, the leading player now facing tougher restrictions. Industry analysts predict DJI may face challenges in the commercial and specialized markets, though its consumer base likely won't be affected.
Taiwan's drone industry is second in the world, behind only China's, according to Andrew Ng, general partner at AI Fund, which is aiming to advance AI applications in drones. Speaking on the eve of the US presidential election, Ng reflected on the significance of democracy and expressed hope that AI development can flourish in a democratic Taiwan.
Carbon-Based Technology recently delivered its "Albatross II" drone to Taiwan's Chung-Shan Institute of Science and Technology (NCSIST) alongside Air Asia Company Limited (AACL). However, due to budget constraints for next year that have halted production, the company's plans for scaling up the advanced drone are temporarily on hold. Despite the setback, Carbon-Based Technology states it has readied production capacity and will now target high-demand commercial markets in Northeast and Southeast Asia.
As the only Taiwanese exhibitor at the 2024 Association of the United States Army (AUSA) show, Thunder Tiger is strengthening its presence for the second consecutive year, demonstrating notable evolution in its offerings.
Interest in the drone industry has surged to new heights. Following the 2024 Taipei International Electronics Show (TAITRONICS) and AIoT Taiwan, which debuted the "Drone Taiwan" pavilion, Computex 2025 is set to introduce a dedicated drone section. 24 local companies, spanning the drone and key components supply chain, will showcase Taiwan's research and manufacturing capabilities.
Aiseed, a burgeoning startup in the drone sector, is leveraging edge AI technology to carve out its niche in the market. The team recently stated that integrating edge AI into drones will become as indispensable as Full Self-Driving (FSD) systems are for smart vehicles. The surge in military procurement contracts has significantly boosted demand for commercial drones, prompting numerous startups to seize the opportunity to establish a foothold in the global non-restricted supply chain through domestic orders.
US-Taiwan cooperation on developing an autonomous defense supply chain in the drone sector is accelerating, as two delegations of American drone industry representatives visited Taiwan in late September and early October.
Following the visit of 26 US drone organizations at the end of September, Taiwan-US collaboration has taken another step forward. The newly established "Taiwan Drone Excellence Overseas Business Alliance" has welcomed its first cooperative partner.
Amid the rise of generative AI and global supply chain restructuring, Taiwan's exports to the United States and ASEAN have surged to unprecedented levels. In August 2024, Taiwan's exports to the US reached a record US$11.89 billion, with cumulative exports for January to August hitting all-time highs of US$75.45 billion to the US and US$56.33 billion to ASEAN. Premier Jung-Tai Cho emphasized the need for Taiwan to enhance supply chain resilience in light of these developments.
In a significant move to strengthen defense ties, a US drone and counter-drone delegation recently visited Taipei, exploring supply chain collaboration with Taiwan's burgeoning unmanned aerial systems (UAS) sector. Simultaneously, Taiwan launched the "Taiwan Excellence UAS Global Business Alliance," bringing together 50 companies to expand its drone industry's international footprint.
Many Taiwan-based industrial computer (IPC) manufacturers, including Advantech, Aaeon Technology, Adlink Technology, Axiomtek, Winmate, and Sintrones, are expanding into the growing markets for unmanned vehicles, which are increasingly used across various industries, according to industry sources.
Taiwan is actively positioning itself as a democratic drone supply hub in Asia, with the first dedicated drone exhibit scheduled for mid-October as part of the Taiwan International AIoT Show, which will be expanded into its own independent exhibition in the future. Furthermore, Taiwan's Ministry of Economic Affairs (MOEA) has recently announced a drone industry alliance aimed at expanding international collaboration.
As Taiwan's drone industry garners increasing attention, the country is set to host its first dedicated drone exhibit at the "AIoT Taiwan" event. Industry insiders report that 24 companies, including key players like Thunder Tiger and Coretronic Corporation, will participate.
Low Earth Orbit (LEO) satellites are emerging as a hotbed of innovation, attracting significant industry interest. Ubiqconn Chairman Leo Chien sees LEO satellites as poised to become a major catalyst for global satellite market expansion over the next decade.
Taiwan, with its critical geopolitical position, has an opportunity to secure key positions in the global drone supply chain not dominated by Chinese businesses. Thunder Tiger (TT), a major drone manufacturer, supports Taiwan-based producers but acknowledges China's long-standing dominance in the drone market due to government support. China still holds two key module technologies, presenting challenges for other countries to quickly detach from Chinese suppliers.
