Taiwan plans to set up drone testing facility in Chiayi

Taipei, Dec. 21 (CNA) Taiwan will set up a large unmanned aerial vehicle (UAV) testing facility in Chiayi County to help establish its drone supply chain and a higher share of the global market, Industrial Development Administration (IDA) Deputy Director-General Tsou Yu-hsin (鄒宇新) told CNA in a recent interview.

Tsou said that the Ministry of Economic Affairs (MOEA) established an unmanned aircraft system development program in the southern county at the end of 2023 and that the aim was to establish a hub for drone-related businesses.

As part of the program, an office, located in the Asia UAV AI Innovation Application R&D Center, assists companies working in the drone business.

Around 50 companies are based in the drone R&D center, and a nearby small testing facility allows products to be tested as soon as they are developed, Tsou said.

"Chiayi is ready to act as a hub for the drone industry as it has a good foundation for manufacturing," he said.

"Now, we need a huge facility with larger runways for testing," Tsou said. "So, we are planning to build a bigger testing venue to boost drone production."

Tsou said that in addition to the large drone testing facility, an aerospace and drone industrial park big enough for around 100 companies is also being planned. Construction is scheduled to be completed in 2028.

Tsou said after the Russian invasion of Ukraine, more attention globally has been paid to how drones are used in military scenarios.

China currently dominates the drone market, with Shenzhen-based DJI leading the way with about a 74 percent share of the global consumer drone market, Tsou said.

Tsou explained that China's dominant role has sparked concerns among many democratic countries and led to discussions about establishing a "non-red drone supply chain," which could create a lot of opportunities for Taiwan.

In September, the MOEA established the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa), led by Aerospace Industrial Development Corp. (AIDC). The alliance currently has more than 120 members with a range of specialties, including drone system integration and critical component development.

"The move to form the Tediboa is the most efficient way to help Taiwanese drone developers seize on global business opportunities," Tsou said. "The government is working to help the private sector forge business ties with potential foreign buyers through a G2G (government to government) channel."

To provide further support to the local drone supply chain, Tsou said, the Ministry of National Defense (MND) recently sought suppliers of drones for military use.

He said four companies -- Taiwan UAV, Evergreen Aviation Technologies Corp., MiTAC Information Technology Corp. and Coretronic Intelligent Robotics Corp. -- were awarded the contract. They will supply the MND with 3,422 drones over five years.

In addition, the MOEA has a budget of NT$110 million (US$3.36 million) to provide funding for drone AI imaging and low-cost flight control dashboard use.

The budget is pending approval from the Legislative Yuan and the MOEA's Department of Industrial Technology.

According to the government, the production value of the local drone industry is expected to hit NT$5 billion this year and the figure is expected to rise to NT$40 billion in 2030.