Taiwan's leading backlight module suppliers, Coretronic and Radiant Opto-Electronics, are diversifying into new sectors as demand in the traditional display market slows. The new ventures range from unmanned aerial vehicles to advanced optical systems.

Taiwanese drone manufacturer Thunder Tiger recently announced that its board of directors has approved a NT$710 million (US$22.88 million) investment to purchase land and factory facilities in the Dapumei Industrial Park in Chiayi, Taiwan, to support its operational growth and meet research and development and mass production needs for unmanned aerial vehicles (UAVs).

Qisda is easing the pace of acquisitions that built its sprawling corporate group. Chairman Peter Chen said the company is now concentrating on strengthening post-merger integration and accelerating its push to localize Taiwan's drone supply chain.

Urban air mobility (UAM) is regaining attention with advances in hardware technology, but successful commercial operation hinges on integrating information systems for airspace management, operational scheduling, and ground transfers. Kakao Mobility emphasizes its shift from an operator to a platform integrator, leveraging platform experience, data accumulation, and AI technologies to shape the emerging ecosystem.

As drones see ever-expanding applications from military surveillance to logistics, agriculture, disaster relief, and medical transport, a growing challenge for the drone industry is to manufacture lightweight airframes faster and at lower cost. To address this issue, Hewlett-Packard (HP) is advancing its Multi Jet Fusion (MJF) 3D printing technology, which has already demonstrated tangible results from the prototyping phase to volume production.

Geopolitical conflict is redirecting global investment toward the defense sector, where Silicon Valley-style innovation and cost efficiency are upending the traditional model of slow, expensive military procurement.

As global demand for drones accelerates, Taiwan's optical component makers are racing to capture new opportunities in imaging payloads, an area where the island's lens and module expertise offers a competitive edge.

Time-lapse camera manufacturer Brinno Inc. reported third-quarter 2025 revenue of NT$131 million (US$4.2 million), an 8.5% increase from the same period a year earlier, with net profit after tax of NT$7.34 million. For the first three quarters of 2025, cumulative revenue reached NT$410 million, up 5.7% year-over-year, with net profit after tax of NT$1.79 million.

Touch IC leader Elan Microelectronics held an earnings call on November 6, reporting that third-quarter performance exceeded internal forecasts despite a weaker consumer market than in the same period in 2024. Sequentially, revenue grew 9.4% to NT$3.316 billion (approx. US$107 million), although year-over-year it fell 2.6%. Gross margin stood at 47.2%, down 0.8pp from the previous quarter and 2.1pp compared to a year ago. Operating income reached NT$792 million, rising 6.5% sequentially but declining 14.6% annually.

The world's two major aircraft manufacturers are showing sharply contrasting fortunes. Airbus is reportedly facing engine supply bottlenecks that have slowed deliveries, while Boeing has received US regulatory approval to raise monthly production of its 737 series jets to 42 units—a key step toward recovering from past setbacks. Though the short-term momentum differs, long-term demand in the aerospace sector remains robust.

Shinkong Synthetic Fibers Corporation (SSFC) broke ground on October 28, 2025, for its Shinkong InnovHub, a drone base integrating R&D, testing, manufacturing, talent incubation, and flight applications. The initiative aims to energize Taiwan's drone sector and emerging technology industries.

Taiwan's drone exports surged sevenfold in the first half of 2025, with Europe emerging as the largest destination. However, industry experts note that the main challenge for Taiwanese drone makers entering the European Union (EU) market lies not in production capacity but in meeting stringent international certification standards.

Determined not to let SpaceX's Starlink dominate the fast-growing market for low-Earth-orbit (LEO) satellite communications, Airbus, Thales, and Leonardo — three of Europe's largest aerospace and defense contractors — have agreed to combine parts of their satellite manufacturing and service businesses into a new joint venture.

Taiwan's unmanned drone developer Carbon-Based Technology (CBT) has announced an expanded investment in the unmanned aerial vehicle (UAV) sector to accelerate production capacity growth and technological upgrades. Its Albatross II drone, developed in partnership with AirAsia, has been officially delivered to the National Chung-Shan Institute of Science and Technology (NCSIST) for subsequent mass production.

Earthbook, the first drone company to join Shinkong InnovHub, is advancing Taiwan's drone applications in disaster relief, cargo transport, and communications. Earthbook CEO Ian Hsu attended a groundbreaking ceremony for InnovHub on October 28, 2025, highlighting challenges faced by startups, such as a lack of test flight sites and manufacturing facilities—issues that InnovHub aims to resolve.

Taiwanese lithium battery module maker Joules Miles (JMS) is positioning itself for long-term growth in emerging aerospace and unmanned aerial vehicle (UAV) markets, betting on the rapid expansion of low-Earth orbit (LEO) satellite deployments and the global drone industry.

At the Boom-Up Festival 2025, one of Korea's largest gatherings of startups and investors, WOW Future Tech CEO Munju Kim drew attention with an unconventional idea: building drones out of cardboard and recycled packaging materials.

For the first time, Korean Air has unveiled three self-developed unmanned aerial vehicles (UAVs), signaling its evolution into a comprehensive aerospace company encompassing artificial intelligence (AI), manned and unmanned systems, and maintenance, repair, overhaul, and modification (MROM) services.

Tron Future and Huneed Technologies have signed a Memorandum of Agreement (MoA) to jointly develop and market advanced maritime anti-drone systems for both manned and unmanned platforms. The agreement was signed during the Seoul International Aerospace & Defense Exhibition (ADEX 2025), South Korea's biennial defense trade show.

Chinese drone maker DJI had once dominated over 70% of the global consumer drone market and as much as 90% in the US. However, Taiwan's domestic drone makers in recent years have begun to shine in the dual-use (civilian and military) market. The industry's production value surpassed NT$5 billion (approx. US$163 million) in 2024 and is expected to exceed NT$10 billion in 2025.

A new reality is setting in on the modern battlefield. Attackers are using drones that cost thousands of dollars to force defenders to fire missiles worth millions. This lopsided economic fight is a key feature of modern asymmetric warfare, evident from the war in Ukraine to conflicts in the Red Sea. Strategies built on cheap, mass-produced weapons are proving highly effective and are now central to both offense and defense.

Taiwan is accelerating its development of attack drones to strengthen its asymmetric warfare capabilities, with the new "Mighty Hornet" series leading the charge. This strategic shift addresses a critical gap in Taiwan's defenses, drawing lessons from the war in Ukraine and responding to the growing military threat across the strait.

The Taiwanese government announced a major investment of NT$44.2 billion (US$1.36 billion) to develop a new fleet of advanced drones. The plan, unveiled on October 16, 2025, aims to produce 26 types of high-endurance drones designed for extreme conditions. Officials said the initiative is a core part of a strategy to bolster national defense and establish Taiwan as a key partner in a "democratic drone supply chain" for the Asia-Pacific region.

At the opening of the 2025 Taipei Innovative Textile Application Show (TITAS) on October 14, Tong-sheng Wu, chairman of Shinkong Synthetic Fibers Corporation (SSFC)—a subsidiary of Shinkong Group—addressed the industry's ongoing challenges, from global tariffs to China's low-price dumping. Despite this, he maintained an optimistic outlook, remarking, "Business is always tough, but there are always opportunities."