Taiwan drone makers back multi-year special budget for military drone purchases

Aug 26, 2026

Taiwan's legislature is fighting over how to fund a homegrown military drone industry, and manufacturers say only a long-term budget will get them to invest.

  • Drone makers back the Cabinet's plan for a special multi-year budget instead of yearly reviews.
  • Building factories, production lines, and trained staff takes years, so annual funding decisions make companies afraid to commit money.
  • Steady, large government orders would also pull parts suppliers into making components in Taiwan instead of importing them.
  • The opposition KMT wants yearly budget reviews, which industry says can work only if the rules stay the same year to year.
  • Carbon-Based Technology plans a plant in the Minsyong aerospace park in Chiayi County, and Thunder Tiger says small suppliers need the certainty most.

Outlook: Lawmakers are still negotiating between the rival bills, and the funding structure they pick will decide whether Taiwan can build wartime drone production at scale.

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