Taiwan Accelerates Drone Production for Defense and US Military Needs

Taiwan's drone industry is experiencing rapid growth driven by increasing geopolitical tension and demand from the US and other Western allies. Thunder Tiger became the first Asian manufacturer to have its Overkill drones included on the Pentagon's Blue UAS list, allowing them to be used in US military operations. These small FPV drones cost between $3,000 and $5,000 each and are similar in design to the explosive drones used in combat in Ukraine.

Thunder Tiger has also begun producing larger kamikaze drones starting at $30,000, based on the US LUCAS one-way attack drones, which themselves are reverse-engineered versions of Iran's Shahed drones. Meanwhile, the state-owned National Chung-Shan Institute of Science and Technology (NCSIST) developed another attack drone modeled on Israel's Harpy drone, according to Taiwanese think tank DSET.

Taiwanese companies not only manufacture complete drones but also export components. For example, Thunder Tiger supplies parts to three companies participating in the US Department of Defense's billion-dollar Drone Dominance Program. Additionally, Taiwanese manufacturers directly supply flight controllers, batteries, motors, and other microelectronics to Ukrainian companies, while Czechia and Poland import tens of thousands of Taiwanese drones that are often passed on to Ukraine.

In March 2026, Thunder Tiger expanded its supply chain by opening a facility in Ohio, USA, capable of producing over 60,000 drone motors per year, said Gene Su, general manager of Thunder Tiger, in an IEEE Spectrum interview. Focusing on hardware manufacturing, Taiwanese drone companies often partner with Western firms to enhance AI software. NCSIST has partnered with Anduril, Auterion, and Shield AI, while Thunder Tiger has purchased AI software from Auterion to integrate into its line of drones, ground robots, and sea drones.