Taiwan’s Drone Dilemma: Battling High Costs and Chinese Competition in a Race Against Time
Taiwan is racing to build a robust drone industry amid fears of a Chinese invasion, with plans to produce 180,000 drones annually by 2028. Yet, high costs and reliance on Chinese parts pose challenges. Can Taiwan pull a Ukraine and turn its drone dreams into reality before the clock runs out?

Hot Take:
Looks like Taiwan is playing hard to drone! Despite being a tech powerhouse, they’re stuck in a drone production pickle. Who knew creating a swarm of buzzing defenders would be harder than a Friday night karaoke session in Taipei? Maybe they need to take a page out of Ukraine’s “Drones for Dummies” playbook before China drops by uninvited. But hey, at least they’re not inviting DJI to the drone party!
Key Points:
- Taiwan aims to produce 180,000 drones annually by 2028 but struggles with high costs and limited production.
- Structural challenges include high manufacturing costs, low domestic and foreign orders, and reliance on expensive components.
- China’s dominance in crucial drone parts complicates Taiwan’s efforts to avoid Chinese tech in their supply chain.
- America’s support, including access to the Department of Defense’s “blue list,” could boost Taiwan’s drone industry.
- Taiwan needs to establish a clear roadmap for its drone capabilities and enhance its defense strategy, particularly against electronic warfare.
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