Taiwan increases drone production capacity target to 50 billion yuan output value by 2030

A drone was exhibited by Guanqun Intelligent Robot Company at the 2025 Taipei Aviation and Defense Technology Exhibition. Photo: AFP

Long-term outlook: Taiwan plans to enhance its manufacturing capabilities to produce an increasing proportion of large, medium and small drones every year

By Meryl Kao/Staff Reporter

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The Ministry of Economic Affairs has raised its forecast for the output of Taiwan's drone industry to approximately 50 billion yuan (approximately US$1.57 billion) in 2030 from the previous 40 billion yuan, thanks to rapid growth in demand.

Drones are becoming an important tool in modern warfare and reshaping traditional weapons production, highlighted by conflicts such as Russia's invasion of Ukraine, showing the changing nature of war, Economy Minister Gong Mingxin said in an interview on Tuesday.

Taiwan has advantages in production efficiency and has a complete supply chain, and the growth of international demand for non-Chinese supply chains provides Taiwan with the opportunity to play an important role as a democratic partner, Gong Mingxin said.

Taiwan's exports of drones and related components showed rapid growth from 2023 to last year, Gong Mingxin said.

The government is promoting the development of the drone industry through the public sector and defense needs, Gong Mingxin said. The Ministry of Economic Affairs is supporting the industry through its unmanned vehicle industry development plan, which covers market development, technology, test sites and regulations, Gong Mingxin said.

Taiwan's Excellence in Drone International Business Opportunities Alliance has brought together more than 200 domestic companies to connect with overseas markets, Gong Mingxin said.

Defense demand can provide more stable orders, allowing small and medium-sized companies in the industry to invest in capacity expansion, Gong Mingxin said.

Taiwan needs to expand its capabilities in certain components to strengthen its self-sufficiency, including thermal imaging, satellite positioning and communications, Gong Ming-xin said.

The Ministry of Economic Affairs encourages local companies to pursue international cooperation and business opportunities, Gong Mingxin said.

The first priority is to ensure a "non-red" supply chain, while the long-term goal is to enable Taiwan to manufacture key components domestically, regardless of whether it is mass production, Gong said.

The government plans to increase Taiwan's domestic manufacturing capacity of key drone technologies and components from the current about 70% of small drones, about 60% of medium drones, and about 30% of large drones to 90% by 2030, Gong Mingxin said.

Taiwan will continue to expand its drone supply chain through industrial alliances, expanded production capacity, testing sites and international cooperation, Gong Mingxin said.

The goal is for Taiwan to play a key role in the supply chain of democracies and become "the center of the drone supply chain for Asian democracies," Gong said.

News source: Taipei Times

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