Taiwan is emerging as a key supplier for Western military drones, a win for its electronics makers and a blow to China's grip on the sector.

• US firm Shield AI says any drone supply chain built without Chinese parts cannot leave Taiwan out.
• Taiwan's state defense institute and Shield AI integrated three locally built drones with AI autonomy in three months, flying them as a team on scouting missions.
• Taiwanese parts in Shield AI drones jumped from under 1% two years ago to 16% this year, with 25% targeted next.
• The company opened a Taipei office and plans to double its local team next year, working with Taiwanese aerospace and drone partners.
• The goal is to let Taiwanese engineers build their own AI mission software — a "sovereign AI" capability rather than buying finished systems.

Outlook: Expect more Taiwanese suppliers, repair and assembly work to be pulled into Western drone programs as buyers push to cut China out.