Taiwan's KMT and TPP near deal on drone industry bill

Aug 22, 2026

Taiwan's two opposition parties say they are close to agreeing on a drone procurement and industry bill, a positive sign for local drone makers waiting on state money.

  • The KMT wants a NT$240 billion drone budget spread evenly over six years so companies get steady, predictable subsidies.
  • The TPP is focused on making the law actually work in practice and on watchdog rules to stop money being misused.
  • The KMT's NT$240 billion figure is larger than the ruling DPP's NT$210 billion version, and this year's NT$63.4 billion drone budget already passed.
  • Lawmakers want drones to become Taiwan's next big strategic industry alongside chips, with the economics ministry in charge.
  • The argument for a dual military-civilian approach: Taiwan can barely export weapons, so civilian demand has to carry the supply chain.

Outlook: The bill stalled in committee and now goes to cross-party talks led by the speaker, with a push to pass it by the 28th.

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