Drones are becoming indispensable to the overall security of Taiwan, according to Taiwan Vice President Hsiao Bi-khim’s recent interview with the media.
As the Chinese Communist Party (CCP) continues to pose military threats to Taiwan, Taiwan is working to develop its drone industry and strengthen its asymmetric defense capabilities. Bi-khim recently spoke about the development of Taiwan’s drone industry in a joint interview with Central News Agency (CNA) and Radio Taiwan International.
Hsiao said drones are important not only to Taiwan’s military defense but also to civilian security and industrial development. If Taiwan’s asymmetric capabilities are weakened, Beijing could miscalculate Taiwan’s determination to defend itself. Therefore, she said, building up Taiwan’s drone capabilities is an urgent task.
Latest drone-linked legislation in Taiwan
On June 18, Taiwan’s Executive Yuan approved a draft “Special Act on Procurement of Indigenous Defense Unmanned Vehicles,” proposing an annual budget ceiling of NT$210 billion to procure coastal surveillance and reconnaissance drones, coastal attack drones, and small unmanned suicide boats.
A total of 14 versions of the unmanned-vehicle bill have been proposed by the Executive Yuan, the KMT caucus, the Taiwan People’s Party caucus, and others. Cross-party negotiations in the Legislative Yuan on June 20 failed to reach consensus, leaving the bill pending.
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According to CNA, Hsiao discussed the importance of the drone budget from three perspectives: military security, civilian security, and industrial development. She said that if Taiwan’s asymmetric warfare capabilities were weakened, Beijing might conclude that Taiwan could be easily defeated, creating a serious danger for Taiwan.
“We cannot allow the Beijing regime to miscalculate Taiwan’s determination to defend itself,” she said, stressing that building up Taiwan’s drone defense capabilities is an urgent priority.
Hsiao acknowledged that some critics believe the government began investing in drones too late and too slowly. However, she said, “Better late than never” and argued that even if Taiwan has fallen behind, it can still rapidly make up the gap in capabilities.
Recent conflicts have demonstrated that drones have become an important component of asymmetric warfare, with applications ranging from intelligence, surveillance and reconnaissance to attacks and logistics, according to Oriental Daily Online, an Hong Kong based media.
Global strategic importance of drones
Hsiao analyzed the global strategic importance of drones, saying that since Russia’s invasion of Ukraine, countries have seen that some of Ukraine’s most critical defensive capabilities have come from asymmetric warfare, particularly the use of drones.
She said Ukraine’s experience over the past several years has demonstrated that drone technology, methods of warfare, and tactics are evolving rapidly, with increasingly diverse applications including intelligence, surveillance and reconnaissance (ISR), attacks, and the transport of supplies.
Hsiao also pointed out that drones have emerged as a new form of military capability in the U.S.-Iran conflict, while other countries facing various risks and gray-zone incursions have begun incorporating drones into their main military forces.
Several days before she visited the European Parliament last November, Brussels Airport was shut down because of drone incursions. European countries bordering Russia are planning to build a “drone wall” to defend against possible Russian aggression.
She said many international visitors have raised the same question: as Taiwan faces continued pressure from the CCP, various forms of gray-zone harassment, and the threat of military force, “does our will to defend ourselves and our determination to protect our country actually exist?”
Using the Russia-Ukraine war as an example, Hsiao said it was possible that Russian President Vladimir Putin miscalculated or became overconfident when deciding to invade Ukraine. Taiwan, however, must not allow Beijing to miscalculate Taiwan’s determination to defend itself.
“Taiwan’s overall objective is deterrence and multi-domain denial,” Hsiao said. The purpose is to raise the threshold for an attack on Taiwan to such a high level that anyone considering an invasion understands how difficult it would be and that there would never be an opportune moment to attack Taiwan. For this reason, she said, building up Taiwan’s drone-based defense capabilities is an urgent priority.
Hsiao also emphasized that President Lai Ching-te has repeatedly reiterated that Taiwan has the resolve and will to defend itself. She said this is precisely why Lai has proposed a special defense budget.
Hsiao Bi-khim pointed out that Taiwan’s defense budget has increased year by year, with improvements not only in military equipment but also in support for military personnel. She said drones play a critical and indispensable role in modern battlefields, whether in gray-zone operations or in various conflicts in the Middle East and Europe.
“It’s not just drones; the capability to counter drones is also an urgent priority. These are capabilities that we urgently need to build up,” she said.
Disaster preparedness
Beyond building a core defense capability for military security, Hsiao outlined a second major role for drones: strengthening disaster-response capabilities in the event of typhoons, floods, and earthquakes. She said this is highly important for civilian safety.
She cited the April 2024 Hualien earthquake as an example. During the subsequent rescue operations, employees of the Silks Place Taroko hotel who were traveling by bus lost contact. However, Taiwan lacked drones capable of automated obstacle avoidance, autonomous search, and AI-based identification and rapid positioning, resulting in delays to the rescue effort. Although a Turkish drone rescue team came to assist after the earthquake, several days had already passed.
Another example was the barrier lakes formed by landslides along the Matai’an Creek and Wanli Creek. Hsiao said such barrier lakes are located in remote mountainous areas, requiring more advanced equipment capable of collecting on-site data in complex terrain and even producing 3D simulation models. From the perspective of disaster prevention and rescue—as well as routine safety inspections of factories, bridges, and other infrastructure—Taiwan needs drones, she said, according to Radio Taiwan International.
The third major area is using drones to drive the development of Taiwan’s non-red supply-chain industry. Hsiao acknowledged that Taiwan started developing unmanned vehicles later than some other countries, but said, “Taiwanese people are really capable.”
She noted that Taiwan’s drone exports during the first half of this year had already surpassed the total for all of last year. She said that Taiwan could rapidly catch up not only in complete drone systems but also in various components and as an alternative source of technologies and products for non-red supply chains.
However, Hsiao stressed that “the budget must be secured as a prerequisite.” She said many foreign visitors to Taiwan have expressed interest in purchasing Taiwanese drone products because countries around the world are seeking trusted, non-red drone supply chains. Foreign visitors also ask whether Taiwan’s Ministry of National Defense is purchasing domestically produced drones. In her view, if Taiwan itself creates demand for and uses its own drone products, this would reinforce the industry’s efforts to expand into international markets.
Hsiao said that although Taiwan got a relatively late start in drones from the perspectives of military security, civilian security, and industrial development, she remains confident: “As long as people across political parties support this, I believe drones can become a key force in protecting the country—not only technologically and industrially, but especially in the field of security.”
Taiwan’s preparedness against CCP
Faced with continued military threats from the Chinese Communist Party (CCP), Taiwan’s Ministry of National Defense (MND) regards building up the drone industry as a top priority for establishing asymmetric capabilities and island defense.
The MND argues that it should serve as the competent authority and lead the special budget for military requirements, rather than having the Ministry of Economic Affairs take the lead. The defense ministry maintains that the military is best positioned to determine the types, specifications, and functions required for combat, including coastal surveillance and reconnaissance drones, coastal attack drones, and loitering munitions/unmanned suicide boats.
It therefore insists on a multi-year special budget, such as the Executive Yuan’s proposed NT$210 billion “Special Act on Procurement of Indigenous Defense Unmanned Vehicles,” so that procurement can proceed according to military force-building schedules, reported Reuters.
According to the Central News Agency (CNA), data released by Taiwan’s Ministry of Economic Affairs in April showed that the top three destinations for Taiwan’s complete drone exports were the Czech Republic, Poland, and the United States.
In the first quarter of this year, exports of complete drones reached US$115 million, exceeding the US$93 million recorded for all of 2025. Exports are projected to surpass US$250 million by the end of the year, indicating that Taiwan is gradually entering the global drone market.
Chiu Chiu-hui, director-general of the Industrial Development Administration under the Ministry of Economic Affairs, said that more than 267 companies in Taiwan are currently involved in the drone industry, with companies participating across northern, central, and southern Taiwan.
Their activities span key areas including complete-system integration, power modules, communications, and flight-control systems. Chiu said that further integration of central and local government resources could strengthen connections across the supply chain and improve the industry’s overall development.
However, the opposition parties disagree with the MND’s position. Although the Kuomintang (KMT) and Taiwan People’s Party (TPP) support developing Taiwan’s drone industry and strengthening defense self-reliance, they firmly oppose the Executive Yuan’s proposed special budget. The KMT and TPP advocate returning the funding to the regular budget process and placing the Ministry of Economic Affairs, with its greater focus on industrial development, in charge—putting them at odds with the ruling government.
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