Taiwan is reshaping its defense around cheap drones and a "no-China" parts rule, a boost for local manufacturers and a warning sign for anyone counting on old-style military buildups.

• Vice President Hsiao Bi-khim says drones and anti-drone tech have changed how wars are fought, and Taiwan is adapting fast.
• The government has sent lawmakers a special budget for drone buying, with coastal surveillance drones, coastal attack drones, and unmanned attack boats to be built at home.
• All government drone production and purchasing, including civilian orders, must use supply chains with no Chinese parts.
• Taiwan wants to link its chip, telecom-gear, and precision manufacturing strengths to defense work, giving companies a clear path from test to contract.
• The "T-Dome" air defense plan aims to stitch together expensive and cheap sensors and interceptors, with AI helping speed up decisions.

Outlook: Expect more local drone orders and tighter parts rules as Taiwan tries to turn its factories into a defense industry.