October 14, 2025
Data Cutoff: October 2, 2025

About DSET Drone Newsletter:

Policy analysts from DSET’s National Security Group will publish a biweekly drone newsletter. It reviews a curated selection of the most noteworthy domestic Taiwanese and international sources, providing insights into the development of Taiwan’s drone industry and the implications of global UAV trends for Taiwan. 


This pilot newsletter focuses on Taipei’s Aerospace & Defense Technology Exhibition (TADTE), Thunder Tiger’s debut into the Blue UnCrewed Aerial System (UAS) Cleared List, Taiwan’s new military tender, Russian drone incursions, NATO’s response, and Ukraine’s lifting of export restrictions.

Taipei Aerospace & Defense Technology Exhibition (TADTE)

TADTE, Taiwan’s government-supported defense exhibition, recently concluded its 2025 edition—hailed as the largest in its history. Held from September 18 to 20, the event showcased cutting-edge innovations in defense, aerospace, unmanned systems, military technology, and advanced manufacturing. With 490 exhibitors across 1,500 booths—including 85 international companies—it served as a key platform for industry leaders to connect and highlight emerging technology trends. The strong presence of UAV and USV manufacturers, in particular, drew significant attention from observers.

(Source: TATDE website, compiled by DSET)

Here’s 10 Drone Highlights We Think You Should Know

  1. Taiwan’s Principle Industry Players Participated. From the UAV sector, companies like Thunder Tiger, Coretronic, Aerospace Industrial Development Corporation (AIDC), Tron Future, 7A Drones CO., LTD. and so many more, joined the exposition.
  2. Major Global Defense Contractors Participated. Lockheed Martin (US), Northrop Grumman (US), BAE Systems (UK), L3Harris (US), and Anduril (US) among others set up booths, highlighting the growing international interest in Taiwan. Most of which develop and manufacture their own autonomous vehicles. 
  3. A Significant Forum for International Unmanned Vehicles was held. Speakers included Michael Robbins, President & CEO of AUVSI; Robert Fintak, President of the Polish Chamber of Unmanned Systems; Kakuya Iwata of JUIDA; and Pavel Diviš, Chairman of the Czech-Taiwanese Business Chamber. 
  4. Taiwan External Trade Development Council (TAITRA) organized one-on-one procurement meetings with 140 international buyers from the United States, India, Japan, Mexico, Poland, and Italy. With more and more global appeal towards a China free supply chain, Taiwan is situating itself as a top alternative.  
  5. In total, 23 Noteworthy Memorandums of Understanding (MOUs) Were Signed during the TADTE period. Out of these, newfound TW-US partnerships dominated the majority and most agreements were in relation to product distribution. [See Charts Below. See the complete breakdown of which companies, what countries, and type of MOUs signed in the table at the end of the newsletter.] Albeit some MOUs may not yet have been announced.
  1. The National Chung-Shan Institute of Science & Technology (NCSIST) Signed 5 Unmanned Vehicle Related Defense Deals with Foreign Partners. Namely, with Aerovironment (US), Anduril (US), MARTAC (US), Airshare (Canada), and Northrop Grumman (US). 
  2. The Asia UAV AI Innovation Application R&D Center Showcased 21 Unmanned Vehicle Suppliers. Some memorable exhibitions of theirs include: Tianwu Technology’s  (田屋科技展) rotary-wing unmanned vehicle, Fulandeng Technology’s (富蘭登科技) medium-to-large long-flight solution, Hangjian Technology’s (航見科技展) long-range Needle 2500 FPV drone, and Taishi Technology’s (新樂飛無人機展) fixed-wing models.
  3. The Aerospace Industry Pavilion Presented All-Electric Fixed-Wing Counter-drones and High-Speed Interception Systems. These new systems integrate varying equipment such as active and passive radars, lasers, and jammers for monitoring and attack purposes. This was spearheaded by Hanxiang Aviation (AIDC) and 19 of its member companies. 
  4. NCSIST Unveiled New US-Co-Produced Unmanned Vehicles. For example, a low-cost autonomous cruise missile was recently co-developed with Anduril Industries and the Mighty Hornet IV multipurpose drone was repurposed from their partner Kratos’ MQM-178 target drone.
  5. Overall, NCSIST Displayed 19 New Unmanned-Vehicles To Pay Attention To. These ranged from the “Mighty Hornet (Chien Feng) I–IV” attack drones to unmanned ground vehicles (UGVs), unmanned surface vessels (USVs), unmanned underwater vehicles (UUVs), and hard-kill counter-drone technology.

Let’s Break That Last Point Down. Models Displayed at NCSIST Include: 

Low-cost autonomous cruise missile (NCSIST × Anduril)

A joint development between Taiwan’s NCSIST and Anduril. Built around Anduril’s Barracuda-500 concept, it’s a turbojet-powered, medium-range cruise weapon designed for low unit cost and mass production. It can operate in coordinated swarms and be adapted for different roles by swapping its sensors. Taiwan aims to locally produce a ground-launched version for the armed forces.

(Photo credit: Samara Duerr, DSET)

Hard-kill interceptor to protect critical infrastructure (NCSIST × AirShare)

NCSIST has signed an integration agreement with Canada’s AirShare to field the Interceptor UX as part of its counter-unmanned aerial system (C-UAS), a hard-kill interception that physically disables incoming drones rather than jamming or spoofing them. The system uses a rocket-launched ribbon payload that entangles a hostile drone’s propellers, and an attached parachute that then slows the device so it descends intact.

(Photo credit: Samara Duerr, DSET)

Mighty Hornet series

Mighty Hornet I — loitering munitions one can carry

A small loitering munition portable in a backpack, uses onboard cameras and tracking to strike beyond visual range, stays aloft for 15+ minutes, and has a guidance range over 8 km. It can be launched by a single soldier or mounted on the unmanned systems developed by NCSIST, such as larger UAVs “Albatross II (銳鳶二型)“, UGVs, and “Kuai Chi USVs (快奇無人艇)“.

Mighty Hornet II — an anti-radiation, seeker-guided variant

An anti-radiation drone built on a design similar to Harpy or Iran’s “Shahed” loiterer, this model is optimized to find and home in on specific target signatures. It can loiter for long periods and operate in swarms, fitted with domestically developed jamming/location tools and high-explosive warheads while remaining compatible with existing launcher systems.

Mighty Hornet III — VTOL + X-tail, rapid development

A vertical-takeoff-and-landing (VTOL) drone features an X-tail and is similar to the US VTOL system V-Bat. It’s 3D-printed for fast prototyping and can carry anti-armor payloads against vehicles or landing craft. Its endurance is >40 minutes and range >50 km. The X-tail and wing design allow horizontal turns in flight, improving accuracy and tactical flexibility.

(Photo credit: Samara Duerr, DSET)

Mighty Hornet IV — high-speed attack variant (NCSIST × Kratos)

A high-speed, low-cost attack drone adapted from Kratos’ MQM-178 target drone. It supports both human-in-the-loop and autonomous modes and is designed for long range (up to ~1,000 km). Paired with heavier anti-ship missiles in a “high-low” attack mix, its modular design allows operators to swap payloads for different missions and hit high-value tactical targets such as enemy helicopters and landing craft to disrupt or delay amphibious operations.

(Photo credit: Samara Duerr, DSET)

To Sum It Up

The new military-grade models showcased by NCSIST reflect Taiwan’s deepening collaboration with international drone partners. In March 2025, Minister of National Defense Koo stated that Taiwan-US technology cooperation would “soon yield positive results”. A report quoted sources indicating that the Ministry of National Defense (MND) is working with US counterparts through NCSIST to advance joint technology efforts. TADTE marked the outcome of this collaboration. The next key area to watch is how NCSIST will move forward—either independently or in partnership with private industry—to scale up production of these UAVs.

On the “commercial-grade, military-use” front, the numerous B2B collaborations at TADTE between domestic and international companies underscore the growth of Taiwan’s commercial drone supply chain.  

US-China technology decoupling has prompted global companies striving to enter US and allied defense markets increasingly wary of sourcing from China. This creates a business opportunity for Taiwan, which embodies the notion of a secure and resilient non-red supply chain. Attesting to this, the latest CommonWealth Magazine report ascertained from Taiwan Defense Industry Development Association’s president Tony S.C. Hsu (徐綬章) that over 100 international companies have attempted to integrate Taiwan into their supply chain within the last 2 years. As the report points out, this trend has ignited a ‘Taiwan Drone Boom’ with exports growing 750% compared to the same period in 2024.

Based on interviews DSET conducted with foreign companies at TADTE, countries have varying visions of what utilizing Taiwan’s non-red supply chain looks like. For the US, co-development and co-production are viable options. US companies seem interested in both working with Taiwan on new technology and partnering with Taiwanese companies to join the latest Taiwan military tender. European countries, on the other hand, seem to be primarily interested in sourcing components from Taiwan to then take home and manufacture their own drones.

Notably, TADTE also hosted two Ukrainian companies: Skyeton and Terminal Autonomy. Upon conversation, a clear piece of advice came through: while localization is important, Taiwan should also seek to integrate the ‘best of the best’ foreign technology. In other words, Taiwan needs to build a strong domestic drone foundation, but ensure that it is flexible enough to interoperate and co-develop with international advanced systems. 

To that end, after 3 days, over 38,000 visitors, and 23 MOUs signed later, TADTE’s achievements of amplifying brand visibility and fostering cross-border partnerships testify to the success of Taiwan’s efforts to create a self-reliant, yet globally connected defense ecosystem. 

Beyond TADTE: Updates on Taiwan’s NT$50 Billion Drone Tender and Thunder Tiger’s Blue UAS Debut

Ukraine has demonstrated the power gained through the mass production of drones. Emulating this, Taiwan aims to leverage its strengths in semiconductors, ICT, and precision manufacturing to get a foothold into drone manufacturing. 

In line with this vision, the Ministry of Defense has initiated the largest drone procurement plan in Taiwan’s history. 

Specifically, Taiwan’s Defense Ministry plans to acquire 48,750 units of five drone types by 2027, equaling around $50 Billion NTD (1.56 billion USD). Compared to the 3,422 units procured in 2024, this round represents nearly a 17-fold increase. The MND is planning to acquire five types of drones, with Type A (Group 1 FPV) making up the majority—approximately 34,000 units. The procurement requires that all drones be assembled domestically, with components preferably sourced locally. Chinese-made parts and brands are strictly prohibited, and companies from China or those with Chinese investment, including through third-party countries, are not allowed to participate.

In addition to the growth in procurement volume, Taiwan’s drone industry has also reached a new milestone in the US market—- Thunder Tiger’s “Overkill” FPV suicide drone became the first Taiwanese system approved for the Pentagon’s Blue UAS list in September.

According to the analysts from Research Institute for Democracy, Society, and Emerging Technology (DSET), there has been a recent surge in US-Taiwan cooperation, with exports to the US rising from 278 units in 2023 to 874 units in 2024, and then increasing suddenly to 5,017 units in 2025. Adding to this, Thunder Tiger Group’s debut onto the Blue UAS Cleared List makes US federal purchases from Taiwan more easily attainable. We expect Taiwanese exports to the US to have another imminent upsurge. 

Europe proposes “drone wall” to counter airspace incursions and Ukraine’s drone diplomacy

As Taiwan deepens cooperation with international partners, similar momentum—and tensions—are unfolding abroad. Across Europe, the surge of Russian drone incursions and Ukraine’s shifting drone policy are pushing NATO and the EU to rethink how they build defenses.

At least ten European countries including Poland, Estonia, and Denmark have reported drone incursions since early September. While Russia has denied responsibility for these incidents, NATO has launched Operation Eastern Sentry to reinforce its eastern defenses.

EU leaders, however, remain divided over the European Commission’s proposed “drone wall” along the bloc’s eastern border. Despite this impasse, Ukraine has offered to share its battlefield-tested expertise in drone detection and interception, with Ukrainian specialists already training alongside EU partners in Denmark. 

Meanwhile, as Ukraine steps up efforts to lighten export restrictions, Kyiv is pushing a delicate balance: European governments see opportunity in buying surplus Ukrainian arms, but Ukraine insists that frontline stockpiles come first and has unveiled plans for “managed exports” that only sell weapons beyond domestic needs. 

What It Means for Taiwan

The geopolitical traction driving Europe’s “drone wall” and Ukraine’s change in export policy offers both opportunity and caution for Taiwan. Global demand for reliable, non-Chinese drone supply chains is rising, but so is competition among allied producers. Taiwan’s challenge is to translate its niche strengths in semiconductors, electronics, and systems integration into sustained production at scale. To stay relevant, Taiwan will need not only domestic resilience but also interoperability with partners like the US and Europe, ensuring its drone ecosystem fits into allied defense architectures.


About the Authors

Samara Duerr

Samara Duerr serves as a policy analyst for the National Security and Dual-use Technology (NSDT) taskforce at DSET. Samara earned a Master’s degree in Asia Pacific Studies at National Chengchi University in Taiwan, a Bachelor’s degree in International Relations and Chinese Studies at Emory University in the US, and has also studied at Yonsei University in Seoul and the School of Oriental and African Studies (SOAS) in London. Her research focuses on dual use technology in relation to Taiwan-US and Taiwan-EU cooperation. With an emphasis on techno-geopolitics, her work specializes in the drone supply chain, emerging technology, and US-Taiwan relations.

Ting-Wei Lin

Ting-Wei Lin is a journalist and researcher, serving as a Non-Resident Fellow at DSET’s National Security Program. Her research focuses on defense technology and supply chain resilience. Lin specializes in the intersection of technology and geopolitics, cross-strait relations, and Taiwan’s public policy. Her work has appeared in Agence France-Presse, Initium Media, The Reporter, and other publications. She holds a B.A. in Anthropology from National Taiwan University.