Taiwan's drone industry is stuck making aircraft by hand at high prices, and the government wants big military orders to fix it — good news for local manufacturers if the money comes through.

• A visit to a Taiwanese drone maker found workers assembling drones by hand because there aren't enough orders to justify buying robots.
• Small order sizes mean development costs get baked into each unit, pushing Taiwanese drone prices far above world prices.
• Vice President Hsiao Bi-khim wants a special defense budget for drones, led by the Defense Ministry, so companies see steady demand.
• Taiwan's pitch is a "non-red supply chain" — drones built without Chinese parts — plus its strength in precision machinery and AI.
• Exports are already running ahead of last year's full-year total, and military buyers want drones that handle sea wind and keep flying when GPS is jammed.

Outlook: If lawmakers approve the special drone budget, bigger orders should push factories toward automation and bring Taiwanese prices closer to the global market.