Taiwan passes drone and defense industry law with NT$240 billion over six years

Aug 27, 2026

Taiwan's legislature approved a six-year, NT$240 billion push into homegrown drones and defense manufacturing — good news for Taiwanese defense and drone firms, and a signal of how seriously Taipei is arming itself.

  • The new law commits the government to budget NT$40 billion a year for six years, with room to add more if needed.
  • The Ministry of Economic Affairs runs the program, but the Defense Ministry takes over anything involving military purchases.
  • Defense buying, research grants, imports of key technology, cybersecurity checks, and testing sites will be handled jointly across agencies.
  • The money flows through the normal annual budget process, so lawmakers still get a yearly say on the spending.
  • Final paperwork is being held until the next legislative session opens at the end of September before the bill goes to the president.

Outlook: Expect Taiwanese drone makers and defense suppliers to line up for the first NT$40 billion tranche once the law is formally signed this autumn.

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