Taiwanese prosecutors have indicted a husband-and-wife team who ran a drone company for secretly using Chinese-made chips in military drones, a move that threatens Taiwan's push to keep China out of its defense supply chain.

• The company, once a top maker of remote-control helicopters, won several military drone contracts from the army, navy, and defense ministry's youth newspaper.
• Contracts banned Chinese parts, but the company used China-made chips anyway, then faked paperwork claiming the drones were fully designed and made in Taiwan.
• Inspectors caught the fraud when they found chips openly labeled "CHINA" and "CHN" during acceptance testing, and the drones also failed wind-resistance tests.
• The husband admitted mixing in Chinese parts and had told staff to keep quiet about it, even ordering them not to discuss the chips internally or with outsiders.
• Prosecutors are charging the couple under national security law along with fraud and forgery, seeking over five years in prison.

Outlook: The case will likely sharpen scrutiny of Taiwan's military procurement process and push for stricter screening of Chinese components in defense supply chains.