TAIPEI, Taiwan Taiwan’s state-backed drone industry alliance, has expanded from 50 members in September 2024 to more than 200. Chairman Hu Kai-Hung tells Aviation Week it is quickly divorcing from China-based supply chains.
Hu, who also serves as chairman of Taiwan’s Aerospace Industrial Development Corporation (AIDC), says the drone alliance is laser-focused on creating a “non-red supply chain” the red referring to China to meet the requirements of the United States, which has raised concerns about the security threats posed by Chinese drones.
Hu underlines that members of the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) must demonstrate the precise origin of their components to ensure the integrity and quality of their goods in the global market. In an era of increased worldwide scrutiny and competitiveness, the alliance promotes supply chain transparency, requiring each member company to give verifiable proof of raw material sourcing and component manufacturing. This step is critical for preserving the high standards associated with the Taiwan Excellence brand and reducing the risk of counterfeit parts or inferior manufacturing processes, which could harm the alliance’s global reputation.
The fast-expanding Taiwan Drone Alliance currently brings together the country’s premier drone manufacturers, including industry heavyweights Geosat Aerospace and Thunder Tiger, both known for their ingenuity in unmanned systems. These established companies are joining a rising number of smaller, specialized enterprises that focus on producing crucial unmanned aircraft system (UAS) components such as sensors, flight controllers, propulsion systems, and AI-driven navigation software. This collaboration between large-scale producers and specialist technology developers aims to boost Taiwan’s domestic drone capabilities while reducing reliance on foreign supply chains, notably for defense and commercial uses.
The partnership promotes a more self-sufficient and resilient ecosystem for drone technology in Taiwan by bringing together enterprises at various stages of the manufacturing process. It also improves the country’s ability to adapt to emerging threats and changing geopolitical landscapes through domestic innovation. Aside from hardware, the alliance promotes integration across software platforms and UAS interoperability, which is critical for real-time operations in both civilian and military settings. As worldwide demand for unmanned aerial systems grows, Taiwan positions itself as a competitive hub for drone manufacture, development, and supply chain excellence through this strategic collaboration.
Hu agrees that Taiwan confronts significant obstacles in entering a China-dominated sector. Based in Shenzhen, DJI alone accounts for an estimated 70% of the global UAS market. “Taiwan is a latecomer to the drone sector, but it can leverage its advanced technology and manufacturing capabilities to cooperate with the growing number of countries that want a reliable alternative to China,” he explains.
Tediboa has made gains in Eastern Europe and the United States, securing deals with Estonia, Latvia, Lithuania, and Poland. Hu argues that they are perfect allies for Taiwan because of their experience assisting Ukraine, particularly with autonomous technology, in defending itself against Russia’s full-scale invasion and their opposition to authoritarian expansionism.
Tediboa has recently increased cooperation with Asian countries such as Japan and India, which are growing efforts to lessen reliance on Chinese drone providers. In February, Japan said it would increase its supply of domestically built UAS to Indo-Pacific partner countries beginning with the fiscal year 2025. India has canceled three orders for 400 military UAS because of security concerns over Chinese-made components.
While Tediboa is growing confident in the integrity of its supply chain, Hu sees one area as particularly risky. “We are concerned about the reliability of access to rare earths and other critical minerals dominated by China,” he says, highlighting how Beijing has militarized its influence over those supply chains in its trade fight with the United States. “These are crucial for certain drone components, and we don’t have an easy replacement if China cuts off supply to Taiwan.”
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