Mitsubishi Heavy Industries (MHI) is advancing the development of a multirotor drone designed to carry a maximum payload of 200 kilograms and achieve a flight range of 200 kilometers. While this payload capacity remains below that of a typical light-duty truck, which averages around 350 kilograms, the prototype already surpasses industry norms, where multirotor drones commonly carry only a few to several dozen kilograms.
The test launch of the VP01 suborbital rocket by private Taiwanese rocket manufacturer and launch service provider Taiwan Innovative Space (TiSPACE) scheduled for July 6, 2025, at the Hokkaido Spaceport (HOSPO) has been postponed until July 12, 2025, due to the impact of Typhoon Mun.
Neros Technologies, a drone startup founded in 2023, has transformed battlefield insights from Ukraine into a strategic advantage for securing US military contracts, positioning itself as a key supplier for the Pentagon's future low-cost drone arsenal.
Taiwan is intensifying its focus on unmanned warfare capabilities, shifting increasing attention from aerial drones to unmanned surface vessels (USVs). Established shipbuilding companies are applying their traditional skills to this emerging field, while a new wave of entrants—comprising drone manufacturers and software-driven startups—are beginning to transform maritime combat.
As global aerospace demand strengthens, Taiwanese manufacturers are expanding beyond traditional electronics and into high-value aviation components. Jinpao and Nafco, two leading industrial players, are securing major contracts with global aerospace leaders as part of a broader strategy to diversify revenue streams and enhance long-term growth stability.
Taiwan's defense companies face funding volatility and bureaucratic delays that undermine business confidence despite government pledges to boost military spending in response to regional tensions.
Aerospace components manufacturer Nafco reported a notable rebound in revenue for June, with monthly sales reaching NT$339 million (approx. US$11.7 million), marking a 13% increase from May and a year-over-year rise of 22.2%. For the first half of 2025, the company posted cumulative revenue of NT$1.923 billion, up 13.04% from the same period last year.
Myson Century aims to capture 30% of the heavy-lift drone market as geopolitical tensions and supply chain concerns create opportunities for trusted manufacturers outside China, according to Chairman Youming Chang.
As growth in the PC, notebook, and home appliance markets slows, Taiwan Line Tek Electronic, a connector and cable manufacturer, is shifting its focus to emerging niche sectors such as low-earth orbit (LEO) satellites, artificial intelligence (AI), and cloud computing. The company has identified the LEO satellite industry as its primary area of development, with several ongoing collaborations and a projected increase in related product proportions from the second half of 2025.
AI cybersecurity leader CyCraft announced a strategic partnership with APMIC, a provider of model-as-a-service solutions, to launch the industry's first AI model designed specifically for defense: XecGuard. Paired with a model security evaluation service, this initiative leverages a 3-billion (3B) parameter open-source model developed by APMIC and the Twinkle AI community.
Taiwan's National Chung-Shan Institute of Science and Technology (NCSIST) held its first major unmanned boat demonstration in June 2025, drawing attention from US officials and companies amid speculation about expanded defense cooperation beyond drones.
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