US drone maker AeroVironment has worked closely with Taiwan-based supply chain partners over the past three years, with the company noting that many of its product components are now co-developed and manufactured by both sides. Moreover, the defense tech company has also established a direct communication channel in Taiwan in recent years to support Taiwan's national defense resilience program.
AeroVironment is known for producing the "Switchblade" loitering munition, one of the key weapons Ukraine uses against Russian forces. The US has approved the sale of 974 Switchblade 300 units to Taiwan, with full delivery expected by 2029.
In addition to being a market for AeroVironment, Taiwan has also increasingly become part of its defense-related supply chain system. The company has followed the lead of other US defense tech firms, including Anduril and Shield AI, by setting up a direct presence in Taiwan to strengthen ties and keep track of Taiwan's drone development policies.
Speaking on July 2 about the company's Taiwan expansion, AeroVironment director of overseas business development Celine Fahn highlighted the company's efforts to deepen its footprint in Taiwan over the past three years, with support from the American Institute in Taiwan (AIT) and Taiwan's Ministry of National Defense. She added that multiple product components are now developed and manufactured in conjunction with Taiwanese suppliers.
While Fahn did not specifically name local partners, she said the company has spent the past year working with a Taiwan-based partner to develop a common ground control system (GCS) that can support different types of drone operations. The product uses AeroVironment's software technology on 100% made-in-Taiwan hardware, in a concrete example of US-Taiwan defense tech cooperation shifting from component supply toward system integration. Earlier public disclosures identified the partner as rugged computer maker Ubiqconn Technology.
In addition to selling attack drones to Taiwan, AeroVironment is also gradually incorporating Taiwan into its global defense technology supply chain, according to Fahn. The company will continue to support Taiwan's defense resilience program and strengthen its indigenous defense technology capabilities through technological cooperation, localized manufacturing, and supply chain integration.
AeroVironment has recently reported strong results for the fourth quarter of fiscal 2026, with full-year revenue and profit both far exceeding market expectations. Revenue reached US$641.6 million, up 133% from the same period in 2025.
CEO Wahid Nawabi also expressed optimism as global demand for drones, counter-drone systems, and space technology continues to rise. In particular, he highlighted that the US Department of Defense's annual drone budget could top US$75 billion by 2027, which would significantly boost momentum in relevant supply chains.
Article translated by Kevin Wang and edited by Jack Wu
