Taiwan has detained the head of a tech company accused of putting Chinese parts into drones sold to the army, a bad sign for the island's push to keep China out of its defense supply chain.

• The army found Chinese chips and flight control boards inside training drones during an inspection.
• Prosecutors say the company hid labels and faked paperwork showing where the parts came from.
• The contract banned any components from China, Hong Kong, or Macau — a core rule as Taiwan builds its own drone industry.
• This is the first case of its kind tied to a military drone deal, and the company head is being held without contact with the outside world.
• The military has stopped payment and wants to cancel the contract, seek damages, and block the firm from future government work.

Outlook: Expect tighter checks on defense suppliers and more prosecutions as Taiwan hunts for Chinese parts hiding in its military supply chain.