Taiwan is building out a local supply chain for military communications gear, which is good news for Taiwan's defense industry and its push to reduce reliance on foreign suppliers seen as security risks.

• Taiwan's National Chung-Shan Institute of Science and Technology (NCSIST) is deepening cooperation with US company DTC (Domo Tactical Communications) to make communications equipment inside Taiwan.
• The plan covers local sourcing of key parts, assembly, testing, and mass production, aimed at keeping defense communications gear running even if outside supply is cut off.
• Drones and other unmanned vehicles increasingly depend on stable, jam-resistant communications, so this is seen as key to Taiwan's broader drone and unmanned-systems push.
• Taiwan's legislature already passed a law to boost defense self-reliance and the unmanned vehicle industry, and DTC will offer discounted pricing to five drone makers working with NCSIST, which should lower costs as local production scales up.
• The effort is also meant to clean up the supply chain by cutting out Chinese-linked components ("de-reddening"), a growing theme in Taiwan's defense planning.

Outlook: Expect continued expansion of local production and testing capacity, with Taiwan aiming to make its drone and military communications industry more self-sufficient and more competitive internationally.