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As China looms, Taiwan makes more drones for defense and the US military

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Why This Matters

Taiwan's increased investment in domestic military drone production is a strategic move to bolster its defense capabilities amid rising tensions with China. This initiative not only enhances Taiwan's self-defense but also positions Taiwanese drone manufacturers as key suppliers to the US and global markets, potentially reshaping the drone industry landscape. The focus on local production and international partnerships underscores the growing importance of drone technology in modern military and geopolitical strategies.

Key Takeaways

Taiwan’s existence as a self-governing democracy may depend heavily on having enough military drones to discourage any attempted invasion by China’s military. As the Taiwanese government aims to boost domestic production of military drones and Taiwanese citizens sign up for drone flight training, Taiwanese companies are forming international partnerships to sell more drones to the US military and other overseas buyers.

Taiwan’s Ministry of National Defense proposed a special budget that would spend $6.6 billion over six years on buying drones made in Taiwan, according to the Central News Agency that represents the national news service of Taiwan. Presented on June 18, the budget proposal would allow the government to buy more than 208,000 coastal attack drones, along with more than 1,400 coastal reconnaissance drones and 1,320 uncrewed surface vessels, between 2026 and 2031.

That would be a significant boost to the Taiwanese military arsenal that currently includes just 5,000 US-made attack drones and domestically produced drones, according to Resilience Media. During military exercises in early June, Taiwanese soldiers fired Altius-600 loitering munition drones—made by a subsidiary of the US military technology company Anduril Industries—from towed flatbed launchers to strike offshore targets, according to USNI News. In another exercise earlier this year, Taiwanese Marines used Taiwan-made drones to similarly strike targets at sea.

Beyond bolstering Taiwan’s national defense, Taiwanese government spending on domestically produced drones could provide a critical boost to Taiwanese drone manufacturers. Some Taiwanese companies, notably Thunder Tiger, have pitched their drone technology and components to the US military and European buyers as alternatives to drones made in China, while also establishing international technology and manufacturing partnerships to pave the way for more exports.

Taiwan has already exported $115 million of fully assembled drones between January and March 2026, exceeding the $93 million in total drone exports for the entire year of 2025, according to Taiwan Premier Cho Jung-tai in an announcement on April 30. The premier is an appointed principal advisor to Taiwan’s president and leads the executive branch of the Taiwanese government.