Taiwan Targets 180,000 AI Drones by 2028; Major Tech Firms Hesitant, Local Manufacturers Lead

Taiwan aims to ramp up its production of AI-powered drones to 180,000 units annually by 2028 in a bid to strengthen national defense and reduce reliance on Chinese components. While global semiconductor leader TSMC and electronics giant Foxconn remain largely uninvolved, local manufacturers like Coretronic and Thunder Tiger are at the forefront, supplying both military and export markets. Coretronic expects to deliver 3,000 drones this year but highlights industry challenges such as low profit margins and supply chain instability, emphasizing the need for participation from large enterprises. Despite Taiwan’s current military drone fleet being around 1,000 units—far fewer than China’s tens of thousands—the government, buoyed by US support and inspired by Ukraine’s use of drone-centered strategies, is investing $212 million to spur domestic production. The focus includes developing drones capable of withstanding regional geographical and climatic conditions, such as long-range, wind-resistant, and fully autonomous models. European markets are increasingly important for Taiwan’s drone exports, with shipments to Europe poised to surpass those to the US by 2025. Analysts argue that greater export volumes could drive economies of scale and boost local competitiveness. However, the industry’s future success hinges on deeper collaboration across Taiwan’s technology sector.