Taiwan enacts NT$240 billion drone and defense industry law

Sep 10, 2026

Taiwan has signed into law a six-year plan to build up its own drone and defense industry, a boost for local manufacturers and the military's deterrence posture.

  • The presidential office formally published the law on strengthening defense self-reliance and developing the unmanned vehicle industry.
  • Parliament passed it in late August, and the cabinet countersigned it, clearing the way for spending to begin.
  • The government must budget NT$240 billion over six years, about NT$40 billion a year, to grow the drone sector.
  • The economy ministry runs the program, with the defense ministry handling anything tied to military procurement.
  • The cabinet framed the speed as a security issue: the sooner troops have the capability, the sooner it deters an attack.

Outlook: Expect the first annual drone funding to show up in Taiwan's coming budget cycle, with local suppliers competing for contracts.

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