Cabinet approves NT$44.2 billion plan to boost Taiwan's drone industry

Taipei, Oct. 16 (CNA) The Executive Yuan approved a plan on Thursday to develop Taiwan's drone industry, pledging NT$44.2 billion (US$1.43 billion) in funding through 2030.

The plan, proposed by the Ministry of Economic Affairs (MOEA), focuses on expanding market demand, advancing technology, refining regulations and building a strong ecosystem of industry clusters.

The government aims to position Taiwan as Asia's center for a "democratic drone supply chain," targeting an annual industry output of NT$40 billion by 2030.

Deputy Economics Minister Ho Chin-tsang (何晉滄) told a news conference that domestic procurement is estimated to reach 100,000 drones over the next three years, with significant demand expected from the Ministry of National Defense and other agencies.

Internationally, he said as companies seek to build "non-red" supply chains, referring to those without Chinese involvement, the MOEA's Taiwan Excellence Drone International Business Opportunities Alliance -- comprising over 250 Taiwanese firms -- plans to tap into global markets.

Technological investments will focus on domestic drone chips and software development through collaboration between research institutes and industry, alongside pursuing international technology transfers, Ho said.

He added that Taiwan has signed memorandums of understanding with eight countries, including the United States, Japan, Czech and Poland to facilitate access to "cutting-edge" technology.

The initiative also includes unmanned surface and underwater vehicles, which Ho said are vital both for military use and for collecting subsea data to aid the development of offshore wind power.

He said that new regulations will be introduced to manage their use and set cybersecurity standards across the unmanned systems industry.