As China grows stronger, Taiwan produces more drones for defense and the US military



Drone business boom

Thunder Tiger’s Overkill drones last year was the first From an Asian company to suit the Pentagon Blue Unmanned Aircraft Systems Cleared Listwhich approves commercial drones for use by the US military. Small, first-person view (FPV) drones cost between $3,000 and $5,000 each, according to the report. The Rest of the Worldand many of the explosives used on the battlefields in Ukraine resemble FPV drones.

Thunder Tiger has also started producing larger kamikaze drones starting at $30,000. USA LUCAS Unilateral attack drones, Rest of the World reports. LUCAS drones are reverse-engineered versions of themselves Shahed drones of Iran used in large numbers by both Russia and Iran.

Another modeled single-sided attack drone Israel’s Harpy drone It was reportedly developed by the National Chung-Shan Institute of Science and Technology (NCSIST), a state-owned corporation in Taiwan. Taiwan think tank DSET.

Taiwanese companies also export many drone components. For example, Thunder Tiger supplies drone components to three companies participating in the US Department of Defense’s $1 billion Drone Dominance Program, according to DSET. Taiwan companies also directly to provide flight controllersbatteries, motors and other drone microelectronics are supplied to Ukrainian companies, while the Czech Republic and Poland import tens of thousands of Taiwanese drones, which can sometimes be transferred to Ukraine.

Thunder Tiger CEO Gene Su even expanded Thunder Tiger’s overseas supply chain by establishing a US facility in Ohio in March 2026 that could produce more than 60,000 drone engines annually. IEEE Spectr interview.

Given their focus on hardware manufacturing expertise, Taiwanese drone companies typically turn to US companies and others with more expertise in artificial intelligence and software. According to DSET, Taiwan’s NCSIST has partnered with Western companies such as Anduril, Auterion and Shield AI to improve the artificial intelligence capabilities of its drones. Meanwhile, there’s Thunder Tiger Purchased AI software from Auterion to include a wider range of drones, ground robots and maritime drones.



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