Taiwan ramps up drone production with $1,4B program to counter rising threats from China
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Taiwan’s Executive Yuan has approved a NT$44.2 billion (US$1.4 billion) plan to scale domestic drone production through 2030. The program aims to strengthen local defense manufacturing and position Taiwan as a democratic hub for unmanned systems in Asia.
According to information published by the Taipei Times, on October 17, 2025, Taiwan’s Executive Yuan approved a NT$44.2 billion program through 2030 to scale domestic production of uncrewed aerial systems and position the island as a democratic hub for drone supply chains in Asia. The plan blends new outlays with existing funds to build capacity, tighten the supply base, and move key platforms from prototypes to serial production, a signal that UAVs now sit at the core of Taipei’s defense-industrial strategy.Follow Army Recognition on Google News at this link
Taiwan expands indigenous drone production under a NT$44.2 billion plan, highlighting the Teng Yun 2, Chien Hsiang, and Albatross II UAVs as key assets to strengthen surveillance, strike, and defense capabilities while reducing dependence on Chinese components amid growing PLA pressure (Picture source: NCSIST).
Three systems illustrate the trajectory. The NCSIST Teng Yun 2, a MALE-class airframe that resembles a Reaper in size and role, has demonstrated autonomous takeoff and landing, networked control, and real-time imagery. Officially, it is credited with endurance around 24 hours, a service ceiling near 25,000 feet, and an operating range in excess of 1,000 kilometers, giving Taiwan persistent ISR and a nascent precision strike option from indigenous inventory.
At the tactical end, the truck-launched NCSIST Chien Hsiang is an anti-radiation loitering munition purpose-built to suppress PLA air defenses. The delta-wing, pusher-prop design homes on hostile emitters and can also be cued by electro-optical and inertial guidance, enabling swarming attacks on coastal, maritime, or inland radar sites. Open sources place its reach at roughly 1,000 kilometers, extending denial effects deep into the threat envelope.
For maritime domain awareness, the Albatross family has evolved into Albatross II, pairing longer legs with improved payloads. Earlier models offered about 12 hours of endurance and more than 180 kilometers of range with EO/IR sensors for target acquisition and battle damage assessment. The newer iteration adds greater range and endurance, and a synthetic aperture radar fit for wide-area sea surveillance, a useful complement to Taiwan’s coastal missile batteries and patrol forces.
These drones plug into Taipei’s push for tighter sensor-to-shooter links. Teng Yun 2 serves as the high-end ISR and strike node, Albatross II maintains the maritime picture and relays comms for dispersed units, and Chien Hsiang cracks open defended airspace by hunting radars ahead of manned or unmanned shooters. This dovetails with the new T-Dome integration effort, which aims to fuse air defense and counter-UAS assets to raise kill rates and protect mobile launchers and airfields against saturation attacks.
The policy rationale is as important as the hardware. Taipei is moving to eliminate Chinese-origin electronics from military UAVs and mandate domestic assembly to reduce sabotage and backdoor risks, ensure wartime sustainment, and keep export options open with partners wary of PRC supply chains. Government guidance targets GPS chips, sensors, flight controllers, and datalinks, while industry groups say local manufacturers can now meet larger orders. The United States’ tightening restrictions on PRC drones also create a prospective market for Taiwan’s clean-origin designs.
China has flown large strike-fighter and drone packages across the Taiwan Strait’s median line, conducted encirclement drills, and surged naval patrols, forcing Taipei to stretch readiness while conserving munitions. The government has responded with higher defense outlays and investments in asymmetric systems that complicate PLA planning and raise the costs of coercion.
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Taiwan’s Executive Yuan has approved a NT$44.2 billion (US$1.4 billion) plan to scale domestic drone production through 2030. The program aims to strengthen local defense manufacturing and position Taiwan as a democratic hub for unmanned systems in Asia.
According to information published by the Taipei Times, on October 17, 2025, Taiwan’s Executive Yuan approved a NT$44.2 billion program through 2030 to scale domestic production of uncrewed aerial systems and position the island as a democratic hub for drone supply chains in Asia. The plan blends new outlays with existing funds to build capacity, tighten the supply base, and move key platforms from prototypes to serial production, a signal that UAVs now sit at the core of Taipei’s defense-industrial strategy.
Follow Army Recognition on Google News at this link
Taiwan expands indigenous drone production under a NT$44.2 billion plan, highlighting the Teng Yun 2, Chien Hsiang, and Albatross II UAVs as key assets to strengthen surveillance, strike, and defense capabilities while reducing dependence on Chinese components amid growing PLA pressure (Picture source: NCSIST).
Three systems illustrate the trajectory. The NCSIST Teng Yun 2, a MALE-class airframe that resembles a Reaper in size and role, has demonstrated autonomous takeoff and landing, networked control, and real-time imagery. Officially, it is credited with endurance around 24 hours, a service ceiling near 25,000 feet, and an operating range in excess of 1,000 kilometers, giving Taiwan persistent ISR and a nascent precision strike option from indigenous inventory.
At the tactical end, the truck-launched NCSIST Chien Hsiang is an anti-radiation loitering munition purpose-built to suppress PLA air defenses. The delta-wing, pusher-prop design homes on hostile emitters and can also be cued by electro-optical and inertial guidance, enabling swarming attacks on coastal, maritime, or inland radar sites. Open sources place its reach at roughly 1,000 kilometers, extending denial effects deep into the threat envelope.
For maritime domain awareness, the Albatross family has evolved into Albatross II, pairing longer legs with improved payloads. Earlier models offered about 12 hours of endurance and more than 180 kilometers of range with EO/IR sensors for target acquisition and battle damage assessment. The newer iteration adds greater range and endurance, and a synthetic aperture radar fit for wide-area sea surveillance, a useful complement to Taiwan’s coastal missile batteries and patrol forces.
These drones plug into Taipei’s push for tighter sensor-to-shooter links. Teng Yun 2 serves as the high-end ISR and strike node, Albatross II maintains the maritime picture and relays comms for dispersed units, and Chien Hsiang cracks open defended airspace by hunting radars ahead of manned or unmanned shooters. This dovetails with the new T-Dome integration effort, which aims to fuse air defense and counter-UAS assets to raise kill rates and protect mobile launchers and airfields against saturation attacks.
The policy rationale is as important as the hardware. Taipei is moving to eliminate Chinese-origin electronics from military UAVs and mandate domestic assembly to reduce sabotage and backdoor risks, ensure wartime sustainment, and keep export options open with partners wary of PRC supply chains. Government guidance targets GPS chips, sensors, flight controllers, and datalinks, while industry groups say local manufacturers can now meet larger orders. The United States’ tightening restrictions on PRC drones also create a prospective market for Taiwan’s clean-origin designs.
China has flown large strike-fighter and drone packages across the Taiwan Strait’s median line, conducted encirclement drills, and surged naval patrols, forcing Taipei to stretch readiness while conserving munitions. The government has responded with higher defense outlays and investments in asymmetric systems that complicate PLA planning and raise the costs of coercion.
