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.
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.
TiSPACE, a private-sector Taiwanese rocket manufacturer and launch service provider, is scheduled to launch a suborbital rocket on July 6 at Taiki in Japan's Hokkaido Prefecture, via its Japanese subsidiary Jtspace. The choice of location is due to Taiwan's current lack of commercial launch facilities.
Taiwan's drone industry continues to capitalize on its well-established semiconductor supply chain, offering distinct advantages in integration and testing speed. However, despite these strengths, order volumes for drones remain limited, and the sector would benefit from increased policy and financial support to unlock its full potential.
US President Donald Trump has signed two executive orders aimed at reshaping the country's drone ecosystem, marking a strategic pivot to bolster domestic manufacturing and tighten airspace controls. The directives—"Unleashing American Drone Dominance" and "Restoring American Airspace Sovereignty"—are designed to strengthen the industrial base, enhance national security, and accelerate the adoption of next-generation aviation technologies.
Taiwan is accelerating efforts to build asymmetric drone warfare capabilities by fostering a self-reliant domestic drone supply chain. Alongside military procurement, the government is backing industrial development to localize production.
China has showcased a prototype micro-drone no larger than a mosquito, drawing international attention for its potential military applications but raising questions about its operational readiness and real-world performance.
Taiwan's Aerospace Industrial Development Corporation (AIDC) announced that its anti-drone system is progressing as planned and may be launched by the third quarter of 2025. Additionally, the company's civilian aircraft orders have exceeded NT$50 billion (approx. US$1.72 billion), driven by strong demand from major international aviation firms.
Despite ongoing uncertainties in the market, such as exchange rates and tariffs, cable manufacturer Well Shin Technology is optimistic it will be able to maintain overall growth in 2025, thanks to an increase in pull-ins from electric vehicle (EV) customers and the continued growth of low Earth orbit (LEO) satellites and refrigerated containers.
Qualcomm has backed nearly 70 Taiwan startups since 2019 and is now focusing on drone, space technology, and cybersecurity companies as artificial intelligence processing moves from cloud to edge devices.
Taiwan's Thunder Tiger Technology has partnered with American defense technology company Auterion to integrate advanced artificial intelligence and autonomous systems into its comprehensive lineup of unmanned vehicles operating in air, land, and sea domains.
More coverage
