Taiwan's legislature has approved a major push into drone manufacturing, a positive for the island's tech industry and defense but one that still needs the cabinet's sign-off to start spending.

• Lawmakers passed a bill setting aside T$240 billion over six years to build a homegrown drone and unmanned vehicle industry.
• The economics ministry will run the program, with the defense ministry handling military purchases.
• The cabinet is expected to approve the funding shortly and add it to this year's extra budget, plus next year's main budget.
• Backers argue Taiwan's existing chip and electronics supply chain makes it the natural place to become the world's biggest drone producer, creating thousands of jobs and billions of dollars in orders.
• The law includes items Washington had pushed for and creates a national committee to steer the strategy.

Outlook: If the cabinet signs off as expected in early September, money starts flowing this year and Taiwan begins building what supporters call a second industry pillar alongside semiconductors.