TAIPEI, Taiwan – Taiwan is taking significant steps to enhance its position in the global drone industry, with plans to build a large unmanned aerial vehicle (UAV) testing facility in Chiayi County. This move is part of Taiwan’s broader strategy to establish a robust drone supply chain and capture a larger share of the global drone market.
Building a Drone Industry Hub in Chiayi
In a recent interview, Tsou Yu-hsin (鄒宇新), Deputy Director-General of the Industrial Development Administration (IDA), revealed that the Ministry of Economic Affairs (MOEA) established a dedicated unmanned aircraft system (UAS) development program in Chiayi in late 2023. The initiative aims to turn the southern county into a hub for drone-related businesses, which includes aerospace technology and drone manufacturing.
The region already boasts a foundation for manufacturing, with approximately 50 companies operating in the Asia UAV AI Innovation Application R&D Center. This center includes a small-scale testing facility where drones are tested shortly after development.
According to Tsou, while Chiayi is well-prepared to support the drone sector, it lacks the large-scale infrastructure needed for extensive drone testing. The new facility will include larger runways and state-of-the-art testing equipment.
Strategic Plans for the Future
In addition to the UAV testing facility, Taiwan is planning to develop a aerospace and drone industrial park designed to accommodate around 100 companies. The park is expected to be completed by 2028, positioning Taiwan as a major player in the global drone and aerospace market.
This growth follows the global rise in drone utilization, particularly in military contexts. Tsou noted that the Russian invasion of Ukraine has heightened international attention on how drones are used in combat, prompting discussions about reducing reliance on Chinese drone manufacturers like DJI, which holds around 74% of the global consumer drone market.
Taiwan’s Competitive Edge in the Drone Market
As China continues to dominate the global drone market, Taiwan’s government is keen to reduce dependence on Chinese drone supply chains by creating a “non-red” alternative for democratic nations. This shift has opened new business opportunities for Taiwan.
To support this push, the MOEA launched the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) in September 2024. Led by Aerospace Industrial Development Corp. (AIDC), the alliance includes over 120 members, including companies specializing in drone system integration, component development, and drone software solutions. Tsou emphasized that the formation of Tediboa was a strategic effort to position Taiwan’s drone industry for international success.
Collaboration with the Ministry of National Defense
Taiwan is also securing military contracts for drone production. The Ministry of National Defense (MND) recently awarded contracts for the supply of 3,422 drones over the next five years to four Taiwanese companies: Taiwan UAV, Evergreen Aviation Technologies Corp., MiTAC Information Technology Corp., and Coretronic Intelligent Robotics Corp.. These drones will be used for various defense applications.
The government is investing heavily in advancing drone technology, including a budget of NT$110 million (US$3.36 million) for drone AI imaging and low-cost flight control dashboard systems. This budget is awaiting approval from Taiwan’s Legislative Yuan and the MOEA’s Department of Industrial Technology.
Projected Growth of Taiwan’s Drone Industry
Taiwan’s local drone industry has been growing rapidly. According to the government, the production value of the industry is expected to reach NT$5 billion in 2024. Looking ahead, the sector is projected to hit NT$40 billion by 2030, bolstered by increased demand for both commercial and military drones.
Table: Key Milestones for Taiwan’s Drone Industry
| Milestone | Details | Timeline |
|---|---|---|
| Drone Testing Facility | Construction of large UAV testing venue | Planned by 2028 |
| Aerospace & Drone Industrial Park | Development of a park for 100 companies | Planned by 2028 |
| Tediboa Alliance | Establishment of the Taiwan Excellence Drone Alliance | September 2024 |
| Military Drone Contracts | 3,422 drones supplied to the MND | Over the next 5 years |
| Projected Industry Growth | Drone industry expected value | NT$40 billion by 2030 |
FAQs:
Q1: Why is Taiwan building a drone testing facility in Chiayi?
A1: Taiwan aims to establish a drone industry hub in Chiayi to boost its UAV supply chain, with larger facilities for comprehensive testing, supporting both civilian and military drone production.
Q2: How will Taiwan compete with China in the global drone market?
A2: Taiwan is focusing on creating a “non-red” supply chain for democratic nations, offering alternative drone technologies that are not dependent on China’s dominance in the global market.
Q3: What is Tediboa, and how does it support Taiwan’s drone industry?
A3: The Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa), launched by the Aerospace Industrial Development Corp., connects over 120 companies to seize global business opportunities in the drone sector.
Q4: What role will military contracts play in Taiwan’s drone industry?
A4: The Taiwanese Ministry of National Defense has awarded contracts for 3,422 drones to four local companies, which will significantly boost Taiwan’s defense sector and drone technology development.
Q5: What is the future outlook for Taiwan’s drone industry?
A5: Taiwan’s drone industry is projected to reach NT$40 billion by 2030, driven by both commercial and military applications, along with support from government investments in research and development.
