Taiwan's legislature passed a six-year plan to build up its own drone industry and military drone stockpile, a boost for local defense firms and a clear signal aimed at China.

• Lawmakers approved NT$240 billion over six years, about NT$40 billion a year, with room to add more if needed.
• The opposition KMT version won out over the cabinet's plan, which wanted a special budget for buying three types of coastal drones and suicide boats.
• The economy ministry runs the program, but the defense ministry handles anything military.
• Chinese, Hong Kong and Macau companies and staff are banned from the contracts, with a fully trusted supply chain targeted by 2027.
• The military must favor cheap, high-performance Taiwanese drones and publish a monthly list of approved suppliers and parts.

Outlook: The law takes effect in six months, with the budget clause starting immediately, so the first big drone orders should land within the next year.