Taiwan passes drone and defense industry bill over Cabinet objections

Aug 27, 2026

Taiwan's legislature approved a six-year drone and defense-industry funding law, and the Cabinet says it is not enough to meet the island's urgent military needs.

  • Lawmakers passed a bill setting aside NT$240 billion over six years — about NT$40 billion a year — to build up domestic drone and unmanned vehicle production.
  • The Cabinet's own version was rejected, and it called that a deep disappointment, saying the approved law does not match how fast Taiwan needs to arm itself.
  • The Cabinet had pushed the drone bill to fill gaps left after parts of a NT$1.25 trillion special defense budget were cut.
  • The government says it will still fund and buy the drones as fast as it can, arguing national security cannot wait.
  • The economics ministry runs the program, but the defense ministry handles anything tied to military procurement.

Outlook: The Cabinet will review whether the new law can be stretched to cover its planned purchases and move ahead with drone orders regardless.

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