As China looms, Taiwan makes more drones for defense and the US military

Ars Technica News

Summary

Taiwan's drone industry is expanding rapidly as it supplies drones and components to the US military and Ukraine, with companies like Thunder Tiger and NCSIST partnering with US AI firms to enhance capabilities amid rising tensions with China.

<p>Taiwan’s existence as a self-governing democracy may depend heavily on having enough military drones to discourage any attempted invasion by China’s military. As the Taiwanese government aims to boost domestic production of military drones and Taiwanese citizens sign up for drone flight training, Taiwanese companies are forming international partnerships to sell more drones to the US military and other overseas buyers.</p> <p>Taiwan’s Ministry of National Defense proposed a special budget that would spend $6.6 billion over six years on buying drones made in Taiwan, according to the <a href="https://focustaiwan.tw/politics/202606180012">Central News Agency</a> that represents the national news service of Taiwan. Presented on June 18, the budget proposal would allow the government to buy more than 208,000 coastal attack drones, along with more than 1,400 coastal reconnaissance drones and 1,320 uncrewed surface vessels, between 2026 and 2031.</p> <p>That would be a significant boost to the Taiwanese military arsenal that currently includes just 5,000 US-made attack drones and domestically produced drones, according to <a href="https://resiliencemedia.co/taiwans-drone-industry-is-booming-thanks-to-us-and-european-exports/">Resilience Media</a>. During military exercises in early June, Taiwanese soldiers fired Altius-600 loitering munition drones—made by a subsidiary of the US military technology company Anduril Industries—from towed flatbed launchers to strike offshore targets, according to <a href="https://news.usni.org/2026/06/10/taiwanese-forces-deploy-american-made-attack-drones-against-maritime-targets">USNI News</a>. In another exercise earlier this year, Taiwanese Marines used Taiwan-made drones to similarly strike targets at sea.</p><p><a href="https://arstechnica.com/ai/2026/06/as-china-looms-taiwan-makes-more-drones-for-defense-and-the-us-military/">Read full article</a></p> <p><a href="https://arstechnica.com/ai/2026/06/as-china-looms-taiwan-makes-more-drones-for-defense-and-the-us-military/#comments">Comments</a></p>
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# As China looms, Taiwan makes more drones for defense and the US military Source: [https://arstechnica.com/ai/2026/06/as-china-looms-taiwan-makes-more-drones-for-defense-and-the-us-military/](https://arstechnica.com/ai/2026/06/as-china-looms-taiwan-makes-more-drones-for-defense-and-the-us-military/) ## The drone business boom Last year, Thunder Tiger’s Overkill drones[became the first](https://www.taiwannews.com.tw/news/6204883)from an Asian company to qualify for the Pentagon’s[Blue Uncrewed Aircraft Systems Cleared List](https://www.diu.mil/latest/dius-blue-uas-list-to-transition-to-dcma), which certifies commercial drones for use by the US military\. The small, first\-person view \(FPV\) drones cost between $3,000 and $5,000 each, according to reporting from[Rest of World](https://arstechnica.com/ai/2026/06/ukraines-one-time-test-used-fully-autonomous-drones-to-kill-russian-soldiers/), and are similar to the many explosive FPV drones being used on the battlefields in Ukraine\. Thunder Tiger has also started producing larger kamikaze drones starting at $30,000 based on the[US LUCAS](https://en.wikipedia.org/wiki/Low-cost_Uncrewed_Combat_Attack_System)one\-way attack drones, Rest of World reported\. The LUCAS drones are themselves reverse\-engineered versions of[Iran’s Shahed drones](https://arstechnica.com/gadgets/2026/06/cheap-iranian-drone-downed-25-million-us-army-helicopter-maybe-by-chance/)that have been used in large numbers by both Russia and Iran\. Another one\-way attack drone modeled on[Israel’s Harpy drone](https://en.wikipedia.org/wiki/IAI_Harpy)was developed by the National Chung\-Shan Institute of Science and Technology \(NCSIST\), a Taiwanese state\-owned corporation, according to the[Taiwanese think tank DSET](https://dset.tw/en/research/newsletter7-eng/)\. Taiwanese companies also export plenty of drone components\. For example, Thunder Tiger has been supplying drone components to three companies participating in the US Department of Defense’s $1 billion Drone Dominance Program, according to DSET\. Taiwanese companies are also directly[supplying flight controllers](https://dset.tw/en/research/000491-2/), batteries, motors, and other drone microelectronics to Ukrainian companies, while Czechia and Poland import tens of thousands of Taiwanese drones that may sometimes be passed on to Ukraine\. In March 2026, Thunder Tiger even expanded its overseas supply chain by establishing a US facility in Ohio capable of producing more than 60,000 drone motors each year, said Gene Su, general manager of Thunder Tiger, in an[IEEE Spectrum](https://spectrum.ieee.org/taiwan-drone-supply-chain)interview\. Given their focus on hardware manufacturing expertise, Taiwanese drone companies typically turn to US companies and others with more expertise in AI and software\. Taiwan’s NCSIST has sought to boost the AI capabilities of its drones by partnering with Western companies such as Anduril, Auterion, and Shield AI, according to DSET\. Meanwhile, Thunder Tiger has[purchased AI software from Auterion](https://www.taiwannews.com.tw/news/6142712)to embed in its broader lineup of drones, ground robots, and sea drones\.

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