In July 2025, Taiwan’s Ministry of National Defense (MND) announced its latest round of drone procurement, with plans to acquire up to 48,750 drones from domestic manufacturers over the next two years. This marks the largest such acquisition in Taiwan’s history, far surpassing the 3,400 units purchased in 2023. Aviation Week recently published a detailed report on the procurement plan, citing commentary from Cathy Fang, a policy analyst with the National Security Program of DSET.
According to the report, the procurement covers five drone models, including vertical takeoff and landing (VTOL) fixed-wing drones, reflecting Taiwan’s growing emphasis on drones as a key asymmetric capability to counter Chinese military threats and potential amphibious invasion scenarios.
“Taiwan has the capacity for mass production, but it first needs firm orders,” said Fang. “This policy move sends a very positive signal—it provides companies with more stable revenue through government contracts.”
Fang also noted that the four Taiwanese drone manufacturers that received contracts in the 2023 procurement round—including export-capable firms Coretronic and Thunder Tiger—are expected to be strong contenders in the current tender process.
Taiwan’s current annual drone production capacity is estimated at 8,000 to 10,000 units. Aviation Week reports that, in order to meet the nearly 50,000-unit delivery target by 2027, the industry will need to rapidly expand production lines and strengthen supply chain coordination.
Nonetheless, since April 2025, Beijing has tightened export controls on rare earth permanent magnets, causing delays in export license approvals for several manufacturers. These disruptions have already begun to affect delivery timelines and may pose a risk of supply chain interruptions. Fang emphasized that this remains one of the most urgent challenges facing Taiwan’s domestic drone supply chain.