Taiwan's government is promising money and help to Taichung's drone makers, good news for that industry but a reminder that traditional factories in the area are shutting down fast.

• A stalled national drone funding plan finally cleared parliament in August after opposition resistance, and the money will now be pushed out quickly.
• Taichung is Taiwan's drone hub, home to firms like AIDC and Thunder Tiger, and both full-aircraft makers and parts suppliers are set to benefit.
• A small drone testing and certification center will open in Taichung so local firms can get products approved and to market faster.
• On the other side, thousands of small processing factories around Taiping, Dali, Shengang and Fengyuan have closed, pushing workers onto unpaid leave as supply chains reshuffle.
• Support for small and mid-sized businesses is being raised sharply next year, from around NT$11 billion to NT$25 billion, with extra money aimed at sectors that were previously overlooked.

Outlook: Expect faster drone spending and a new export alliance pushing Taiwanese drones at international trade shows, while pressure on old-line factories keeps building.