National Aerospace Fasteners Corporation (NAFCO) is positioned for robust performance in 2025, benefiting from Boeing's order rebound and supply chain disruptions affecting competitors, according to General Manager Alvin Lin.

Boeing landed its largest-ever single order as Qatar Airways agreed to purchase 210 wide-body aircraft during US President Donald Trump's recent Middle East visit. The deal, announced on April 14, includes 130 Dreamliners and 30 777X jets, with options for 50 additional aircraft, alongside an agreement with GE Aerospace for over 400 engines.

Taiwan's industrial PC specialist Parpro reported a sharp year-over-year profit recovery for the first quarter of 2025, citing effective operational restructuring and a revamped product strategy. The company began a turnaround program in 2024, focusing on cost efficiency and portfolio realignment, helping revenue and profit rebound from pandemic-era lows.

Recent escalations in the India-Pakistan conflict have ignited intense aerial skirmishes, marked not only by modern fighter jets but also by sustained drone assaults. Contrary to earlier industry forecasts anticipating a cooling drone market as conflicts in Ukraine and the Middle East wane, the emergence of this new frontline has sustained strong demand for drones, especially attack models.

Intelligent Epitaxy Technology (IntelliEPI), a supplier of epitaxial wafers, is positioned for strong performance in 2025, driven by increasing demand in the artificial intelligence and defense sectors. The company's chairman, Yung-Chung Kao, anticipates moderate operational growth in the second quarter of 2025, supported by a positive outlook for orders. However, the supply of indium phosphide (InP) substrates remains a critical variable, with shipments expected to remain balanced. The company's overarching goal is to achieve an all-time revenue peak for the year.

Palmer Luckey, once celebrated as the prodigy behind Oculus and virtual reality's mainstream breakthrough, found himself abruptly cast out of Silicon Valley's inner circle following his political donations during the 2016 US presidential election. After leaving Facebook (now Meta), Luckey established Anduril Industries, a defense technology company that quickly emerged as a major force in advancing military innovation.

In a recent speech, Palmer Luckey, the innovative force behind defense technology firm Anduril Industries, invoked a hypothetical Taiwan Strait conflict to underscore the pivotal role of artificial intelligence (AI) in modern warfare.

The US is charting a new course for defense spending, with President Donald Trump's administration proposing a 13% increase that would push the Pentagon's 2026 budget to an unprecedented US$1.01 trillion. While funding for medical research and education faces deep cuts, the White House is prioritizing investments to strengthen national security, deter Chinese aggression in the Indo-Pacific, and revitalize America's defense industrial base. The move aligns with a global trend of escalating military budgets, as nations respond to heightened geopolitical tensions.

As China imposed export controls on seven critical medium and heavy rare earth elements in early April, a buying frenzy has gripped the international rare earth market. Within a month, prices for terbium and dysprosium have more than doubled, marking the steepest monthly surge in nearly a decade. The fallout is global. Analysts say the price spike is adding new fuel to US-China trade tensions and raising alarms for manufacturers of electric vehicles, robotics, and military equipment. Industry experts warn that the long-term stability of these supply chains is now at risk, as companies scramble to secure the raw materials critical for next-generation technology.

Coretronic Intelligent Robotics Corporation (CIRC), a subsidiary of Taiwan's Coretronic Group, is carving a niche in the global drone market, capitalizing on its non-red supply chain status to secure a competitive edge over the Chinese giant DJI. Despite acknowledging technological gaps, CIRC's strategic positioning and robust contract wins signal a promising trajectory, particularly in defense and commercial applications.

Thunder Tiger Technology is broadening its unmanned vehicle portfolio from aerial drones to maritime vessels with its new flagship unmanned surface vessel (USV), the SeaShark800. The company announced that the vessel will participate in Taiwan's military research institute NCSIST's "Kuachi Project" performance tests in June 2025.

Following US President Donald Trump's executive orders implementing reciprocal tariff measures, the China-US trade war has escalated rapidly. China's response now extends beyond traditional trade items to impact the civil aviation industry, showing a more forceful stance than in previous disputes.

Since US President Donald Trump took office, trade tensions between the US and China have escalated, although a recent easing of tariffs announced on April 23 suggests a more calibrated approach. Nevertheless, the overall competition between the two nations continues, with maritime issues becoming a significant area of focus.

Taiwan is strengthening its asymmetric warfare capabilities through unmanned surface vessels (USVs), with both government and private sector companies developing technologies that could reshape the island's maritime defense posture.

As global trade grapples with the turbulence of tariff disputes, defense and military demands remain undeterred, emerging as pivotal bargaining chips in negotiations over reciprocal tariffs with the US. Unmanned vehicles have surged to the forefront of strategic priorities, with Taiwan's drone industry already coalescing into a nascent national team.

China has positioned the low-altitude economy as a cornerstone of its future industrial strategy, with drones serving as the linchpin of this burgeoning sector. Leveraging its early entry into the drone industry, China has secured a dominant global market share, accounting for 70% of commercial drone sales worldwide. This leadership stems from a combination of state-backed technological advancements and cost-effective manufacturing, enabling Chinese firms to outpace international competitors.

Taiwan's aerospace industry is positioning itself to compete globally through investments in advanced manufacturing technologies, particularly in high-end processing of aviation materials. This development occurs as Taiwan's aerospace supply chain remains unaffected by equivalent tariffs for now, though the industry is focused on long-term readiness for global supply chain shifts.

Taiwan's Aerospace Industrial Development Corp. (AIDC) is approaching the final stages of its current domestic aircraft development initiatives, with its chairman, Hu Kai-Hung, noting that 2026 is anticipated to be a particularly challenging year. Despite this, AIDC's recent operational forecast indicates strong performance in its military sector. This includes a surge in aircraft maintenance contracts and substantial investments in drone countermeasure technologies, which are scheduled for launch in June.

The uncertainties regarding the since paused reciprocal tariffs under the Trump administration continue to sweep across global industries, with varying impacts on different sectors. While Taiwan's information technology industry has suffered significant blows, the island's aerospace suppliers appear largely insulated from immediate effects, according to industry executives.

Taiwan-based Aerospace Industrial Development Corporation (AIDC) is actively expanding in the civilian aviation market, having secured more than NT$8.5 billion (US$257.9 million) in new orders in the first quarter of 2025.

Vietnam faces a 46% US tariff, prompting urgent negotiations and a 45-day delay request. The government seeks balanced trade, boosting US imports and reducing duties on key American goods while diversifying its export markets to mitigate economic impact, according to The Investor, Reuters, and Camodianess.

China has imposed new export restrictions on seven medium and heavy rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—through a joint directive from the Ministry of Commerce and the General Administration of Customs. Although intended to curb US access, the move could have far-reaching consequences, with potential disruptions across the robotics sector and its broader supply chain.

Taiwan's Thunder Tiger Corp. is deepening partnerships with major European drone companies amid rising cross-strait tensions following China's surprise military exercises near Taiwan on April 1, 2025.

Taiwan's drone industry, acknowledging limited domestic opportunities, is increasingly focusing on international markets by promoting non-Chinese supply chains. Industry leaders expect significant developments by mid-May, according to the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) chairman from Aerospace Industrial Development Corp. (AIDC), amid emerging shifts in regional market preferences.