Taiwan has begun construction of an aerospace and drone industrial park in Chiayi County. Its goal is to create a drone supply chain without Chinese components.
At the same time, a new campus of the National Chung-Shan Institute of Science and Technology (NCSIST), which develops most of Taiwan’s missiles and military drones, was opened in nearby Minxiong.
The new campus took three years to build. It includes a research building, hangars, laboratories and facilities for integration testing. NCSIST engineers will be able to work through all stages of drone development — from airframe design to the development of propulsion and flight-control systems and testing of the completed aircraft.
The facility also uses digital twin technology, which makes it possible to create a virtual copy of an aircraft and test it in a simulation before its first real flight. Artificial intelligence and virtual reality tools are also being used.
The industrial park next door is intended to bring together manufacturers, government agencies, universities and researchers. It will provide access to shared computing resources and digital engineering tools. The park is planned to accommodate around 100 companies.
In Taiwan, the future supply chain is referred to as a “non-red supply chain” — one that does not use components and systems of Chinese origin.
The development of Taiwan’s domestic drone industry accelerated after Russia’s full-scale invasion of Ukraine began in 2022. The widespread use of drones in the war and Ukraine’s initial reliance on Chinese DJI drones increased concerns about the possibility of Chinese drones and components being tracked or their supply being cut off.
The new park builds on the work of the Asia UAV AI Innovation Application R&D Center, established in 2022 in the city of Puzi. More than 50 companies and institutions are currently working there, while another 40–50 companies are waiting for an opportunity to establish a presence at the center.
Taiwan’s drone industry is also showing rapid growth. In 2025, drone production reached NT$12.9 billion ($407 million), approximately 2.5 times higher than in 2024. Exports totaled NT$2.95 billion ($93 million).
In October 2025, the Taiwanese government launched a six-year NT$44.2 billion ($1.39 billion) program to develop the unmanned industry. Its goal is to increase annual drone production to more than NT$40 billion ($1.26 billion) by 2030.
Taiwan’s strategy has three levels: purchasing large military drones from the United States, developing medium-sized military unmanned systems through NCSIST, and purchasing small dual-use drones from private Taiwanese manufacturers. The new NCSIST campus is intended to connect the institute’s military development work with the capabilities of private companies.
