Taiwan’s military drone strategy enters the explosive growth stage

Taiwan plans to acquire 50,000 drones by 2027.

Taiwan’s autonomous defense capabilities are poised to enter a transformative new phase. In August, the Ministry of National Defense (MND) of the Republic of China announced a major policy shift in its management of unmanned aerial vehicles (UAVs), including a plan to procure at least 50,000 drones in 2026 and 2027.

The move reclassifies certain UAVs as expendable munitions and allocates up to NT$50 billion (US$1.6 billion) for the program. This initiative is expected to significantly boost Taiwan’s military drone deployment and catalyze growth across related domestic industries.

Doctrinal shift to transform Taiwan’s military operations

The policy announcement received broad support from both national security experts and the domestic industrial sector. Hu Kei-young (胡克勇), a consultant at the Asia-Pacific Security Studies Center, told TCN that drones should be classified based on operational characteristics: reusable and expendable. Reusable drones require advanced training, maintenance infrastructure, and spare parts to sustain combat readiness, while expendable drones—being lower cost and easier to replenish—are better suited for large-scale deployment in attrition warfare scenarios, Hu explained.

Hu said that the integration of expendable drones into Taiwan’s existing operational framework could enhance battlefield awareness, firepower, survivability, and tactical flexibility. He predicted that Taiwan’s military would move toward a “human–drone–AI integrated training system,” with human-machine teaming becoming a cornerstone of the nation’s future combat model.

Dr. Chieh Chung (揭仲), from the Institute for National Defense and Security Research (INDSR), told TCN that the policy direction is appropriate and timely. He explained that, following the US military’s five-tier classification system, Taiwan is likely to prioritize Group 1 (small UAS) and Group 2 (short-range tactical UAVs) for widespread unit-level deployment. These UAVs, typically under 300 kilograms, are well-suited for tactical roles and have proven effective on the Ukrainian battlefield, especially in kamikaze-style attacks, Chieh added.
 


Addressing institutional deficiencies in drone management

In July, Taiwan’s Control Yuan released the "Final Audit Report on the Final Account of 2023", which identified several deficiencies in the military’s drone program:

• Procurement Oversight: The MND’s acquisition of commercial-grade military drones lacked adequate supervision and cybersecurity assurance, raising concerns over data security and supplier reliability.
• Insufficient Training Capacity: The Army’s drone training center has a current capacity of 300 trainees annually, while projected demand exceeds 1,000 personnel by 2026—creating a serious training gap.
• Lack of Maintenance Planning: The audit found poor synchronization between drone procurement and logistical support. In some fiscal years, no maintenance budget was allocated, jeopardizing operational readiness. It also cited incidents of improper drone usage by Army personnel, leading to accidental losses.

Taiwan's army, officially the Republic of China Army, responded to the audit with plans to revise drone training protocols and collaborate with the National Chung-Shan Institute of Science and Technology (NCSIST) on systems planning. It will also expand nighttime training, increase training frequency, and integrate UAV instruction into basic recruit training.

Dr. Chieh said that the absence of a unified military doctrine for drone and counter-drone operations has led to difficulties in defining inventory requirements, hindering procurement planning and lifecycle management. Chieh added that to address these challenges, the MND is currently drafting a comprehensive doctrine, which is expected to provide clearer guidance and improve operational coherence once implemented.

Hu said that realistic training environments are needed to ensure combat readiness and for further integration of drone operations into conscript training. He indicated that under Taiwan's existing Preventive Maintenance System (PMS), both training and readiness can be sustained—so long as UAV models are appropriately matched to specific mission requirements."

Taiwan’s drone industry set for expansion under strategic policy shift

The MND’s announcement sparked a surge in Taiwan’s stock market, particularly for drone-related firms. Shares of companies like Evergreen Aviation Technologies and Thunder Tiger Corporation—key players in drone manufacturing—rose to record levels amid investor optimism about the “drone concept” sector after the MNS's announcement.

Research from E.SUN Securities suggests this policy shift could unlock significant value for domestic firms with advanced manufacturing, AI, and dual-use technology capabilities.

Dr. Chieh noted that the 50,000-drone target is just a starting point, citing that monthly drone losses during the peak of the Russia–Ukraine war neared this figure. He said that Taiwan should build larger stockpiles of drones and spare parts during peacetime to avoid shortages in conflict, and believes the island’s industrial base is capable of producing hundreds of thousands of UAVs annually.

Building a non-red supply chain as a strategic imperative

Taiwan’s UAV policy also aims to strengthen its domestic industry and expand internationally by establishing itself in the “non-red supply chain”—defense supply networks free from PRC influence.

In June 2025, NCSIST signed a multi-year cooperation agreement with US defense software firm Auterion to jointly develop next-generation drone platforms. At the signing, Auterion CEO Lorenz Meier pledged support to help Taiwan integrate its software ecosystem, co-develop new technologies, and deepen the local supply chain.


Hu highlighted Taiwan’s concurrent investments in infrastructure supporting this strategic shift. Hu explained that projects like the Chiayi UAV AI Innovation R&D Center and the Minxiong Aerospace and Drone Industrial Park aim to boost technical capabilities and international competitiveness.

However, Hu said that Taiwan also faces challenges in talent retention and underinvestment in critical technologies such as data transmission, digital imaging, and gimbal stabilization, and continued reliance on imported components—especially from the US, UK, and Germany—exposes its defense readiness and export potential to the risk of future export restrictions.

Hu suggested that, despite a promising outlook, stakeholders must act pragmatically. Manufacturers and R&D teams to set clear strategic priorities, focus on functional performance, and avoid rushing development timelines, warning that haste could cause setbacks, Hu added.

Taiwan’s new drone policy not only strengthens its asymmetric defense but also lays the groundwork for a robust domestic drone industry with global competitive potential. This evolving ecosystem—anchored in defense innovation, public-private collaboration, and secure international supply chains—offers significant promise for national security and economic growth.