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Taiwan's drone maker eyes DJI throne as US$1.6 billion military contract looms

Rebecca Kuo, Tainan; Elaine Chen, DIGITIMES Asia 0

Credit: DIGITIMES

Sun Yad Group's subsidiary, Myson Century, is positioning itself as a rising star in the drone industry with its vertically integrated approach—from IC design to full drone manufacturing. Proudly designed and made in Taiwan, its drones target industrial inspection, logistics, and disaster relief applications. Over 70% of the components are self-produced, underscoring the company's commitment to domestic innovation. With plans to launch on Amazon globally in the fourth quarter of 2025, Myson Century boldly aims to become the "Taiwanese DJI," challenging the market leader in drones.

Military procurement creates opportunity

The timing aligns with Taiwan's Ministry of National Defense initiating its largest-ever public procurement of military-grade commercial drones. Between 2026 and 2027, the government plans to invest roughly NT$50 billion (approx. US$1.6 billion) to purchase nearly 50,000 drones spanning five different models.

Myson Century is actively preparing its bids, noting that one or two of the five models are already in production and require only minor tweaks to meet military specifications. The company will submit separate bids for these models.

Vertical integration drives domestic innovation

Chairman Yu-Ming Chang emphasizes the company's comprehensive manufacturing capabilities, covering everything from mainboards, GPS, flight control modules, power management, batteries, and motors to software systems. It's more than 70% self-manufactured component rate reflects its full-cycle drone design and assembly prowess.

Innovation is also on the horizon with Myson Century's newest development: AI-powered drones. These autonomous machines will be capable of self-planning flight paths and executing missions independently, reducing reliance on human operators.

Geopolitical tensions fuel global demand

The soaring demand for drones is fueled largely by escalating geopolitical tensions, including the US-China rivalry and the Russia-Ukraine conflict. Chang notes a rising number of inquiries from Ukraine, a country that currently lacks drone manufacturing capabilities and relies heavily on Chinese components—raising concerns about security and supply chain trust. Ukrainian customers are actively seeking to replace over half of their drone fleet with non-Chinese models.

Globally, many nations, including those in Europe, the US, and Japan, are also shifting away from Chinese-made drones, as DJI dominates more than 80% of the global market share. This shift creates a significant opportunity for Taiwan's drone industry, drawing interest from numerous high-tech firms. Chang foresees explosive growth for Taiwan's drone supply chain in 2026 and 2027.

Cost challenges remain despite opportunity

However, he acknowledges challenges: Taiwanese drones are currently priced three to four times higher than Chinese alternatives, primarily due to higher costs and the lack of economies of scale. "Taiwan has the manufacturing and integration capabilities, but without volume, costs remain high and certain technical breakthroughs are difficult to achieve," Chang explains. "The government's planned NT$50 billion procurement presents a rare opportunity to cultivate the domestic drone industry, which is why many companies are stepping up."

Future plans include underwater vehicles

Looking ahead, Myson Century is planning to develop underwater drones—shallow-water unmanned submersibles measuring 2 to 4 meters. These vehicles are expected to be more cost-effective and safer than manned submarines.

Potential applications include seabed inspection, rescue and salvage operations, geological surveying, and military reconnaissance, highlighting Taiwan's expanding footprint in cutting-edge unmanned technology.

Article edited by Jerry Chen