Taiwanese AI vision solution provider Altek announced on September 4 that it has obtained AS9100 certification for quality management systems in the aerospace and defense industries. This achievement marks the company's successful entry into the global drone and aerospace supply chain and demonstrates its capabilities in high-reliability and high-safety manufacturing, as well as highlights the international competitiveness of its research and design abilities.

Japan’s Ministry of Defense announced in late August its defense budget proposal for fiscal year 2026 (April 2026 to March 2027), reaching a record high of JPY 8.8454 trillion (roughly US$60.2 billion), of which the JPY 312.8 billion (roughly US$2.13 billion) allocated for drones also marks a new peak, at roughly three times the amount allocated in fiscal year 2025.

Taiwan-based Rexon Technology is making significant strides in the unmanned aerial vehicle (UAV) market by leveraging its expertise in motors and power systems. At a recent earnings call, the company revealed it has successfully delivered product samples to manufacturers across Taiwan, the US, Europe, Japan, and India. Domestically, Rexon is expanding collaborations with local drone assembly companies such as Coretronic Corporation and Evergreen Aviation Technologies Corporation (EGAT).

The US defense procurement system has increasingly emphasized technological breakthroughs and industrial innovation at defense startups. Yet at this critical juncture, the Trump administration has unexpectedly dismissed Doug Beck, director of the Defense Innovation Unit (DIU), who has played a key role in acquisition reform.

A surprising new alliance is disrupting Taiwan's robotics and unmanned vehicle industry. A veteran food manufacturer, a key supplier to TSMC, and a leading machinery firm have joined forces in a partnership that is drawing widespread attention across the sector.

The growing demand for unmanned vehicles, especially amid the current wave of AI upgrades, heavily relies on advanced image processing capabilities. For drones, various image processing technologies enable rapid switching between commercial and military applications, serving as core modules for dual-use technology in both sectors. This trend has prompted related supply chains to view drone imaging systems as emerging business opportunities following smartphones and automotive markets.

Taiwan's new economics minister, Ming-Hsin Kung, emphasized on the first day in office that state-supported organizations under the Ministry of Economic Affairs (MOEA) should actively participate in research and development tasks related to the military industry and unmanned aerial vehicles (UAVs), contributing their part to national security.

Taiwan's 2026 defense budget is set to approach NT$1 trillion amid increases in military spending and heightened defense policies. This will lead to a major boost in maritime and aerial contracts in the short term, including the largest-ever procurement of drones at 50,000 units. Additionally, the National Chung-Shan Institute of Science and Technology's (NCSIST) "Kuachi" attack-type unmanned boats have recently passed operational evaluations, with mass production expected to begin in 2026, and orders for more than 1,000 units are expected.

The drone industry is growing beyond its earlier focus on military applications into other industrial sectors and public safety. As an example, the South Korean government is accelerating the development of next-generation drone technologies as vital tools for addressing public safety and disaster response.

As geopolitical factors and the demand for technological sovereignty shake up the global drone industry, South Korean drone companies are now emerging as alternatives to Chinese manufacturers, particularly with the US aiming to exclude DJI and other China-based firms.

As the consumer electronics market matures, leading companies are exploring new growth by entering each other's sectors. Recently, DJI Technology, Insta360, and Dreametech have expanded beyond drones, imaging devices, and cleaning appliances, hinting at a possible shake-up in the industry.

Taiwan's National Science and Technology Council (NSTC) has projected that the island's satellite industry could reach a total output value of NT$1 trillion (US$32 billion) by 2029. But with the sector's current value hovering around NT$300 billion, that target would require a compound annual growth rate of 28.21% — nearly triple the 9% seen in recent years.

Sun Yad Industry has recently expanded its operational scale and diversified business portfolio through active acquisitions and strategic partnerships. The Sun Yad Industry group currently encompasses five publicly listed companies, including Sun Yad Construction, Feei Cherng Develop Technology, U-Best Innovative Technology, Hsin Li Chemical Industrial, and Myson Century. Its business scope now spans real estate, the chemical industry, AI technology, smart health, robotics, and digital finance.

The United States' implementation of trade protectionism has introduced significant uncertainty and risks for export-oriented economies. Chin-Ching Liu, minister of the National Development Council (NDC), recently announced that to enable Taiwan's small and medium-sized enterprises (SMEs) to scale up their investments in the US and avoid high tariffs, the government will amend laws to offer tax incentives encouraging businesses to form industrial holding companies as a strategic step toward entering the US market.

Since Russia invaded Ukraine, drones have taken on a far bigger role in combat than many expected. They are light, fly low to the ground, and can be quickly modified, making them a crucial tool for surveillance and strikes.

JPP Holding Company, a precision components manufacturer, said on Wednesday that it expects continued strong order visibility for the second half of 2025, supported by the gradual ramp-up of its new facilities and automated production lines. These investments will enable the company to expand its portfolio of higher-margin, value-added products.

Under Nvidia CEO Jensen Huang's promotion, the robotics and humanoid robot market has attracted widespread attention. The emergence of various humanoid robots in China has further affirmed the market's potential for future growth.

GUS Technology is targeting the rapidly growing drone market with its proprietary battery cell technology and system design capabilities, which will be officially showcased in September this year. As GUS Technology notes, the company has already secured a drone project in Vietnam and will continue its collaborative efforts in Taiwan's industrial ecosystem to further propel the visibility of Taiwan's drone industry.

Tienpin United, a group that started in the life services industry, expanded its business after entering the AI liquid cooling server cleaning market. The company is now moving into the high-end commercial drone market by partnering with Taiwan's drone application development teams to establish a subsidiary. The initial capital will be NT$100 million (approx. US$3.3 million), with plans to complete the setup by the end of 2025.

The Russia–Ukraine conflict has transformed modern warfare, prompting nations to accelerate the development and mass production of diverse attack drones. Future battles may begin with waves of unmanned aerial vehicles (UAVs) whose low-cost, mid-to-long-range strikes are intended to exhaust expensive surface-to-air missiles, whether launched from land, sea, or aircraft, before clearing the way for more destructive warplanes and missiles.

Shinkong Synthetic Fibers (SSFC) has been actively diversifying its investments in recent years, positioning itself as a leading example of traditional industries transitioning into high tech. Company chairman Tong-sheng Wu stresses the necessity of developing the low-altitude economy, while also calling on the government to leverage interest rates to mitigate the impact of tariffs, as traditional industries are finding it hard to survive.

Taiwan's Shinkong Synthetic Fibers Corporation (SSFC) is deepening its push into the low-altitude economy, unveiling plans to transform its Shinkong InnovHUB complex into northern Taiwan's largest center for unmanned aerial vehicle (UAV) development, manufacturing, test flights, and licensing. The project, part of the Shinkong Young Lion smart manufacturing park, aims to serve as an integrated platform spanning design through deployment.

On July 31, 2025, US President Donald Trump signed an executive order to adjust reciprocal tariff rates, setting the provisional tariff for Taiwan at 20%, effective from August 7, 2025. According to senior government officials in Taiwan, relief measures have been initiated, and affected businesses are urged to apply within the stipulated timeframe. For traditional industries, China faces tariffs exceeding 50% on related goods, which provides Taiwan with a competitive opportunity to gain market recognition.

Taiwan President Ching-Te Lai stressed the importance of defense autonomy during his speech at the "2025 Taiwan Venture Capital Summit" on August 12, 2025. He stated that Taiwan has no intention of changing the status quo but must strengthen its national defense.