TAIPEI — Taiwan is accelerating efforts to build a stronger domestic drone industry, with Chiayi emerging as a major center for research, development and industrial production.
President Lai Ching-te on Monday attended the groundbreaking ceremony for a new drone industrial park and the inauguration of the National Chung-Shan Institute of Science and Technology’s newly completed Minxiong research campus.
Lai said the projects could help transform Chiayi into an Asian hub for a democratic drone supply chain as Taiwan seeks to expand its aerospace and advanced-technology capabilities.
NT$6.9 Billion Drone Industrial Park Planned
The new industrial park is expected to cost NT$6.9 billion and is scheduled for completion in 2028, according to Taiwan News.
The government has already invested about NT$1.1 billion in the Minxiong campus, including its hangar, research facilities, R&D building and related infrastructure.
The campus is designed to support research into areas including propulsion, structural performance and weather resistance. Its testing capabilities also include drone tracking, damage detection and simulations using artificial intelligence and virtual-reality technologies.
The goal is to create infrastructure capable of supporting the development and testing of increasingly sophisticated unmanned systems.
Taiwan’s Drone Industry Is Expanding
The push comes as Taiwan’s domestic drone sector has grown rapidly.
Lai said Taiwan’s drone production reached NT$12.9 billion in 2025, more than 2.5 times the previous year’s level. More than 267 companies are now involved in systems integration and component manufacturing, according to the report.
The government also plans to invest NT$44.2 billion between 2025 and 2030 to strengthen domestic drone research and production.
Chiayi is expected to play a central role in that strategy, with the planned industrial park joining other facilities in the region, including the Asia UAV AI Innovation Application R&D Center and a drone testing zone in Budai.
Why Chiayi Matters
The expansion reflects Taiwan’s broader effort to build supply chains for advanced technologies at home rather than relying heavily on overseas sources.
Lai pointed to developments in the Indo-Pacific and the experience of the war in Ukraine as evidence of the growing importance of drone technology to national security and modern industry.
The president also called on Taiwan’s legislature to support a proposed supplemental defense budget of nearly NT$60 billion.
While the drone push has a clear security dimension, the government’s plans also emphasize commercial research, manufacturing, artificial intelligence and aerospace development.
Taiwan Wants a Bigger Role in the Global Drone Supply Chain
The Chiayi projects represent more than the construction of another industrial park.
Taiwan is attempting to build an ecosystem connecting research institutions, manufacturers, testing facilities and technology companies.
If the projects proceed as planned, Chiayi could become one of the country’s key locations for developing and manufacturing drone-related technologies by the end of the decade.
For Taiwan, the bigger question is whether this investment can turn rapid domestic growth into a globally competitive drone supply chain — and whether Chiayi can become the center of that transformation.
WWC ONE MEDIA G,A
