Taiwan must deepen cooperation with democratic partners on drone development as unmanned systems become increasingly important to modern warfare, President Lai Ching-te said on Monday, as the island steps up efforts to strengthen its domestic defence industry.
Speaking in Chiayi in southern Taiwan at the groundbreaking ceremony for a new drone development centre, Lai said the changing international security environment had increased the importance of the facility.“From the Ukrainian battlefield to Indo-Pacific regional security, unmanned systems have become important combat strength in modern defence,” Lai said.
He said Taiwan should work more closely with democratic partners to build a safer and more resilient supply chain for unmanned aircraft, linking the development of the industry to broader efforts to strengthen security in the Indo-Pacific.
Background
Taiwan has been accelerating defence modernisation as military pressure from China has increased. Beijing claims sovereignty over Taiwan, while Lai and his government reject Beijing’s claims and say the island’s future should be decided by its people.
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Drones have become an increasingly important part of Taiwan’s military planning. In July, Lai described unmanned systems as a key weapon for asymmetric warfare and called for the development of a national drone offensive and defensive system. Taiwan’s defence ministry has also been developing a broader blueprint for drone operations.
Taiwan has sought to combine its defence needs with its existing strengths in semiconductors, information and communications technology and precision manufacturing.
The push has also received legislative backing. In September, Taiwan promulgated legislation providing for NT$240 billion ($7.56 billion) over six years for the development and procurement of unmanned vehicles. The legislation directs the defence ministry to prioritise domestically produced unmanned systems.
Why it matters
The latest move comes as Taiwan seeks to expand its ability to produce drones domestically while reducing vulnerabilities in the supply chains for critical defence equipment.
Taiwan’s cabinet earlier this month proposed an additional NT$145.7 billion ($4.59 billion) in defence spending for 2026. The proposed spending includes more than 600 coastal surveillance and reconnaissance drones, over 40,000 coastal attack drones and an initial batch of more than 100 small drone boats.
The focus on international cooperation also reflects the growing effort among governments and companies to develop drone supply chains that are less dependent on China. Taiwan has already begun seeking overseas markets for its unmanned systems. A Taiwanese drone company and an industry association signed an agreement this month aimed at promoting Taiwanese drones in North America, where efforts are under way to develop non-Chinese drone supply chains.
For Taiwan, cooperation with foreign partners could therefore serve both military and industrial objectives, supporting domestic production while creating links with overseas governments, manufacturers and investors.
What’s next
Taiwan is expected to continue expanding its domestic drone production and procurement programmes as the new funding and legislation take effect.
The government will also need to translate the planned spending into actual production and deployment. That includes expanding manufacturing capacity, securing critical components and integrating drones into Taiwan’s wider military systems.
International cooperation is likely to remain another priority. Taiwan has been seeking partnerships that can connect its drone industry with foreign markets and supply chains, particularly as governments seek alternatives to Chinese-made unmanned systems.
The development of the new drone centre in Chiayi is therefore part of a wider effort by Taiwan to build an indigenous unmanned-systems industry while strengthening its defence ties with partners abroad.
With information from Reuters.
