Lai Highlights Taiwan-Made Defense Technology During Drone Facility Visit

Taiwan President Lai Ching-te visited the National Chung-Shan Institute of Science and Technology (NCSIST) in Taichung on Friday to inspect domestically developed drone systems and renew his call for lawmakers to support additional spending on Taiwan’s defense capabilities as military pressure from China continues to increase.

The trip further demonstrates the government’s efforts to boost Taiwan’s local defense industry and limit foreign reliance in order to boost local military production. Lai’s appeal follows stalled parts of his proposed defense spending plans due to budget disagreements with the opposition-controlled legislature.

During the visit, Lai viewed several Taiwan-developed unmanned aerial systems, including the Teng Yun unmanned aerial vehicle, the Albatross II and the Mighty Hornet IV, a drone jointly developed by NCSIST and U.S.-based Kratos Defense & Security Solutions.

Speaking to reporters during his visit to the National Chung-Shan Institute of Science and Technology (NCSIST), Lai said Taiwan must continue investing in its defense capabilities while working with democratic partners.

“To demonstrate our determination to safeguard the nation, maintain stability across the Taiwan Strait, and uphold peace in the Indo-Pacific, we must respond to the international call to share the responsibility of collective defense,” Lai said.

He also appealed for bipartisan cooperation on defense funding.

“I also call on both the ruling and opposition parties to jointly support national security and industrial development, in order to respond to the international community’s expectations regarding Taiwan’s determination to safeguard its security,” Lai said.

Defense Budget Remains Stalled in Legislature

In May, Taiwan’s opposition-led legislature approved approximately two-thirds of Lai’s proposed NT$1.25 trillion (US$38.59 billion) supplemental defense budget, which includes funds mostly for the procurement of U.S. military equipment.

The Kuomintang (KMT) and Taiwan People’s Party (TPP) have a combined majority in the legislature, which is where Lai’s DPP party sits in opposition.

The government has later put forth a separate proposal of NT$210 billion for surveillance drones, coastal attack drones and small surface drones till 2031. Opposition legislators also have their own suggestions for spending on drones.

Lai Says Drones Have Become Essential to Modern Warfare

Lai said recent conflicts have demonstrated the growing military importance of unmanned systems. Referring to the war between Russia and Ukraine and fighting involving the United States and Iran, he said drones have become the “most important assets on the battlefield.”

The United States has been calling on Taipei to boost drone investment as part of its defense program. The highest-ranking American official in Taiwan said earlier this month the island needs to build a “hornet’s nest” of drones to boost its deterrence capabilities against possible aggression.

The Trump administration has also pressured allies and partners to bolster their defense budgets, which is no different than what Taipei is trying to do as well.

Taiwan Expands Domestic Drone Production

The drone industry is one of the strategic sectors Taiwan has been targeting in its defense industrial policy. As cited by Lai at the drone industry event in June, the industry’s production value grew from NT$5 billion in 2024 to projected NT$12.9 billion in 2025, and exports jumped from NT$140 million to NT$2.9 billion over the same period.

The government aims to grow the industry’s value to NT$40 billion by 2030 and produce 180,000 drone units annually by 2028. Officials have also adopted “non-red” procurement standards requiring drones purchased for government use to avoid components sourced from China.

The Ministry of National Defense has placed two orders for domestic drones, amounting to over 100,000 drones, since the start of last year, with delivery expected to be completed by 2027.

China considers Taiwan part of its territory and has not ruled out the use of force to bring the island under its control. Taiwan’s government rejects Beijing’s sovereignty claims and maintains that only the island’s people can determine its future.