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Taiwan tensions:
Uncertainty plagues Taiwan's drone industry after budget cuts

Experts warn stalled domestic procurement could impede cooperation with US partners
/ Thompson Chau, Nikkei Asia
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A Seawolf-400 autonomous underwater vehicle is displayed at the headquarters of Thunder Tiger Group in Taichung on April 21, 2026. (Bild: I-Hwa Cheng / AFP via Getty Images)
A Seawolf-400 autonomous underwater vehicle is displayed at the headquarters of Thunder Tiger Group in Taichung on April 21, 2026. Bild: I-Hwa Cheng / AFP via Getty Images

TAICHUNG, Taiwan -- The nascent but growing drone industry in Taiwan has been plunged into uncertainty after the opposition-led legislature axed domestic production programs from the government's flagship defense budget.

Legislators from the main opposition Kuomintang (KMT) and its allies voted to cut the entire drone production component of President Lai Ching-te's long-stalled $40 billion defense spending package last month. Lai's bulkier budget had aimed to counter a rising threat from China's massive military buildup by emphasizing asymmetric warfare, in part with homegrown drones.

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