Taiwan and US team up on drone supply chain; ITRI chief pushes traditional-industry upgrade

Sep 17, 2026

Taiwan is tying its tech industry more tightly to the US, Japan and Europe through drones, rare earths and data-center optics, which is good news for Taiwanese exporters and for Western efforts to cut dependence on China.

  • Under a "Green UAS" deal with the US, testing for Taiwanese civilian drones bound for America now happens in Taiwan, cutting the wait from 11 months to 5.
  • Taiwan's ITRI research institute is building rare-earth refining lines with a goal of covering half the island's rare-earth needs by 2030, reducing reliance on Chinese supply.
  • Joint projects with Japan, Lithuania, France, the Netherlands and the UK cover power conversion for AI data centers, lasers, co-packaged optics and 3D-printed base-station antennas.
  • Taiwan's economy is splitting: chips and electronics are booming while traditional industries lag, so ITRI is helping plastics and machinery firms get into the semiconductor supply chain and adopt AI tools.
  • Drone and robot research now starts by visiting at least 10 end users per project so products reach market faster after handover to manufacturers.

Outlook: Expect more Taiwan-Western supply-chain deals in drones, critical minerals and AI hardware, with the rare-earth push ramping toward 2030.

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