Taiwan: Industrial Development Administration (IDA) Deputy Director-General Tsou Yu-hsin stated that Taiwan will build a sizable uncrewed aerial vehicle (UAV) testing facility in Chiayi County in order to increase its drone manufacturing capacity and forge a more robust international market presence, according to Taipei Times. It is anticipated that the new facility would significantly contribute to Taiwan’s expanding drone ecology.

At the end of 2023, the Ministry of Economic Affairs (MOEA) of the Taiwanese government initiated a program in Chiayi to develop uncrewed aircraft systems. The program’s objective is to establish a center for the drone sector, promoting the expansion of companies involved in drones.

The Asia UAV AI Innovation Application R&D Centre, which supports businesses in the drone industry, has an office as part of this effort. The drone research and development center now houses around 50 enterprises, and a modest testing facility enables these companies to test their products right away.

Tsou emphasized that Chiayi is well situated for a significant drone center because of its current infrastructure, which offers a solid basis for production. “Chiayi is ready to act as a hub for the drone industry as it has a good foundation for manufacturing,” Tsou said. However, a bigger testing facility is required to adequately support the expansion of the sector. “Now, we need a huge facility with larger runways for testing,” he said. To assist in scaling up Taiwan’s drone manufacturing capability, plans are in the works to construct a bigger testing facility.

The MOEA is constructing an aerospace and drone industrial park that will accommodate around 100 businesses in addition to the new testing center. By 2028, the industrial park should be finished. According to Taipei Times, the breakthrough coincides with a surge in interest in drone technology throughout the world, particularly in light of the growing military usage of drones in the wake of Russia’s invasion of Ukraine.

China is now the industry leader for drones, with DJI, a company located in Shenzhen, controlling a commanding 74% of the worldwide consumer drone market. Tsou recognized this hegemony and the rising apprehension of democratic countries over China’s control over the supply chain for drones. This has given Taiwan the chance to set up a “non-red drone supply chain,” which would enable Taiwan to capture a sizeable portion of the world market.

In September, the MOEA formed the Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA) to further solidify Taiwan’s place in the global drone industry. The alliance, which is headed by Aerospace Industrial Development Corp., consists of over 120 members with expertise in fields including crucial component development and drone system integration. “The move to form the TEDIBOA is the most efficient way to help Taiwanese drone developers seize on global business opportunities,” Tsou said.

The Taiwanese government is actively assisting the local drone sector in addition to corporate growth. Four Taiwanese companies—Taiwan UAV, Evergreen Aviation Technologies Corp, MiTAC Information Technology Corp, and Coretronic Intelligent Robotics Corp—were recently given contracts by the Ministry of National Defense to provide 3,422 drones to the military over the course of the next five years. Additionally, according to Taipei Times, the MOEA has set aside NTD 110 million (USD 3.36 million) in funds to assist the development of low-cost flight control dashboards and drone AI imaging. The Legislative Yuan has yet to approve the budget.

It is anticipated that Taiwan’s drone industry would generate NTD 5 billion in output this year, and by 2030, it will have grown to NTD 40 billion.