Nikkei Asia reported this week that Taiwan and Japan are accelerating cooperation in the drone sector amid China’s expanding military posture and tightening export controls. The report cited comments from the Research Institute for Democracy, Society and Emerging Technology (DSET) policy analyst Hung-Yuan Teng and former Japan Maritime Self-Defense Force commander Katsuya Yamamoto on the current state and future prospects of Taiwan–Japan drone industry collaboration.
In the interview with Nikkei Asia, Teng noted that China’s recent export controls on dual-use goods targeting Japan — including restrictions affecting major firms such as Mitsubishi Heavy Industries and Kawasaki Heavy Industries — could pose challenges for Japan’s drone industry, particularly in key components such as batteries and motors that rely heavily on Chinese rare-earth materials.
However, citing Japanese customs statistics, Teng pointed out that China remains the dominant supplier for Japan’s civilian drone market. Last year alone, Japan imported 124,936 drones from China, accounting for more than 90 percent of the market. The report further noted that, in an effort to reduce supply chain dependence and strengthen industrial resilience, Japan’s Ministry of Economy, Trade and Industry announced a plan in September last year aiming to achieve annual domestic production of 80,000 drones by 2030. The initiative also emphasized cooperation with “like-minded countries” in critical components including motors, batteries, communication modules, and flight controllers.
According to DSET statistics, Taiwan–Japan drone cooperation has thus far been primarily industry-driven. Since 2020, Taiwanese and Japanese companies, industry associations, and research institutions have signed 15 cooperation agreements. These include partnerships involving Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa), the government-backed Industrial Technology Research Institute and Japan’s two major drone alliances: the Japan UAS Industry Development Association and Japan Drone Consortium. Areas of cooperation have included supply chain and technology development, disaster prevention, emergency response, autonomous flight testing, and operational deployment.
Nevertheless, there remains significant room for further development in Taiwan–Japan cooperation. DSET estimates that Taiwan exported only 45 drones to Japan last year, while Japan exported just three drones to Taiwan. By comparison, Taiwan’s drone exports to countries such as Poland, the Czech Republic, and the United States exceeded 120,000 units.
Teng further explained that Taiwan’s current drone cooperation model mainly involves exporting low-cost small drones to Central and Eastern Europe in support of Ukraine’s defense needs, supplying components to Europe and the United States as alternatives to Chinese sources, participating in U.S. federal and local government procurement projects, and jointly bidding on Taiwanese government procurement projects with international companies. Compared with Taiwan’s other partner countries, he argued that Japan’s drone industry has yet to develop large-scale production capacity or a mature domestic ecosystem, making it difficult for Taiwanese companies to identify suitable Japanese partners.
Yamamoto, now Director of the Strategy and Deterrence Program at the Tokyo-based Sasakawa Peace Foundation think tank, also noted that Japan’s easing of export regulations is unlikely to immediately lead to deeper Taiwan–Japan cooperation in weapons or defense equipment. Both sides, he argued, would still need additional time to establish agreements similar to those Japan has signed with the United Kingdom, Australia, or the Philippines.
At the same time, Teng emphasized that Taiwan has already demonstrated stable supply capabilities and manufacturing strength in drone motors and batteries through its engagement with Ukraine and Eastern European markets. Combined with Taiwan’s cost competitiveness within a “non-red supply chain,” he argued that Taiwan has the potential to become a key partner in helping Japan secure stable supplies of critical drone components.
The Nikkei Asia report also noted that Taiwan’s Legislative Yuan passed a special defense budget on May 8, but approved only one-third of the Executive Yuan’s original proposal. The largest cuts were concentrated in drone localization programs, adding uncertainty to the future development of Taiwan’s unmanned systems industry. DSET’s National Security Program will continue to monitor developments in Taiwan–Japan drone supply chain cooperation and is expected to release a related policy report in the near future for industry and policymaking reference.
