Amid growing military threats from China, Taiwan has increasingly looked to the lessons of Ukraine to guide the development of its domestic drone industry. This emerging sector has become a critical component of Taiwan’s national defense strategy. Spanish media outlet El Obrero recently published a feature on Taiwan’s drone industry, including interviews with Tiunn Hong-lun, Deputy Director of the National Security Program at the Research Institute for Democracy, Society, and Emerging Technology (DSET), and Policy Analyst Cathy Fang. The discussion focused on the strategic role of drones in Taiwan’s national security, comparisons with Ukraine’s wartime experience, and the current challenges faced by the local drone sector.
According to El Obrero, the Taiwanese government regards domestic drone production as a “strategic industry,” with plans to increase its market value to over USD 1.38 billion by 2030 and to achieve an annual production target of 180,000 civilian drones by 2028. Tiunn Hong-lun emphasized, “Drones are an essential component of Taiwan’s defense, particularly well-suited for intelligence gathering, rapid strikes, and coastal defense.”
Since the onset of the war in Ukraine, Taiwan has closely studied Ukraine’s use of asymmetric warfare. Cathy Fang noted that Taiwan is currently prioritizing UAVs for intelligence, surveillance, and reconnaissance missions. She also stressed the need for Taiwan to expand procurement of combat-capable unmanned systems, including both aerial and maritime platforms.
However, Taiwan’s drone industry remains in its early stages. Current annual production stands at just 8,000 to 10,000 units—far short of the government’s 180,000-unit annual
goal and Ukraine’s current 4 million drone production in a year. Tiunn Hong-Lun pointed out, “We have the capability to manufacture all the necessary components, but we lack experience and technical know-how in assembling complete drones.” Cathy Fang added, “With more domestic and international procurement, Taiwan could invest further in this industry. Greater demand would allow for production scale-up.”
The news report concluded that if Beijing were to launch an invasion, unmanned systems could help Taiwan buy crucial time. Taiwan’s geographic characteristics also present strategic advantages, as swarms of drones could complicate any coastal assault on the island.
In June 2025, DSET published Drones for Democracy: U.S.-Taiwan Cooperation in Building a Resilient and China-Free UAV Supply Chain, the policy report on U.S.-Taiwan UAV cooperation. The report draws on interviews with key stakeholders across Taiwan’s drone ecosystem—including major manufacturers, government agencies, and academia—to assess the current state of the industry and identify key challenges. It offers concrete policy recommendations, including encouraging international and domestic governments to procure more drones from Taiwan, thereby expanding the island’s production capacity and enhancing the autonomy of its unmanned systems supply chain.
