Taiwan approves funding for unmanned systems industry development
A Taiwan-built AVIX AHX-230RS UAV flies during a combat-readiness training drill in Changhua County during Exercise ‘Han Kuang 42', which concluded on 14 August. (Cheng Yu-chen / AFP via Getty Images)
Taiwan's Legislative Yuan has approved the FY2026 budget allocation for a government programme intended to support the development of the island's unmanned systems industry.
In a statement on 14 August, Taiwan's Ministry of Economic Affairs (MOEA) said the allocation forms part of a broader TWD63.4 billion (USD2 billion) drone-related funding package that includes funding under the Executive Yuan's Unmanned Vehicle Industry Development Integrated Plan as well as unmanned systems procurement funding across government ministries.
The funding package includes allocations under the Executive Yuan's Unmanned Vehicle Industry Development Integrated Plan, a six-year programme running from 2025 to 2030 with a planned budget of about TWD44.2 billion. About TWD8.3 billion has been approved for the programme in FY2026, with funding for subsequent years to be considered through Taiwan's annual budget process.
According to the MOEA, the plan is intended to support industrial development, defence self-reliance, and expansion of what it described as a ‘democratic supply chain'.
The programme brings together resources from multiple government agencies and focuses on market development, technology advancement, operating environments, and regulatory frameworks. As part of the effort, the MOEA said it has supported companies including Aerospace Industrial Development Corporation (AIDC), Thunder Tiger, Tianwu, and Ability Enterprise through R&D subsidies for unmanned platforms and key subsystems.
The ministry also plans to establish an unmanned aircraft electromagnetic compatibility (EMC) and comprehensive testing laboratory in Taichung. The MOEA said development is continuing at the Asia UAV AI Innovation Application R&D Center in Chiayi, a government-backed facility supporting Taiwan's unmanned systems industry.
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