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.

The Industrial Technology Research Institute (ITRI) held its ITRI Innovation Day on September 15 in Tainan, Taiwan, bringing together research groups and startup teams to highlight 25 cross-disciplinary technologies in AI, smart robotics, and unmanned vehicles. The event was designed to move more research and development results into industrial use through demonstrations, business matchmaking, and an innovation market.

Shinkong Synthetic Fibers Corporation (SSFC) is working with Swiss drone company Jedsy through its investment in Earthbook, bringing in a medical logistics service that has won approval from Taiwan's Civil Aviation Administration and the Ministry of Health and Welfare. Jedsy also plans to increase investment in Taiwan and is reportedly preparing to move its main production base from Europe to Taiwan.

Foreign drone makers are increasingly turning to Taiwan as a hub for non-China drone supply chains, drawn by the island's component strengths and the global push to build alternative sourcing networks. US drone companies have stepped up their presence in Taiwan, while a Swiss drone maker is now considering relocating production there.