Taiwan plans to produce 180,000 AI drones by 2028! TSMC and Hon Hai remain inactive, while Lite-On and Thunder Tiger actively participate.

Palmer Luckey, the founder of the American defense technology company Anduril, has called on Taiwan, stating that if it could mass-produce AI drones and unmanned warships, it could effectively dominate the situation in the Taiwan Strait and prevent Chinese forces from landing. In the face of China's increasing threats, Taiwan is also accelerating the deployment of drones as part of its national defense safety net. Surprisingly, the Taiwanese companies that dominate 90% of the global chip supply, such as TSMC( and Hon Hai, are not actively participating; instead, the front line is currently being supported by manufacturers like Motech and Raytech, which produce Bots. At the same time, the number of Chinese drones has reached over ten thousand, and there are plans to test unmanned warships. How Taiwan will respond to these challenges in the future has become the biggest issue at hand.

Key Summary

Taiwan currently has about 1,000 military drones, far fewer than China's scale of over ten thousand.

Tech giants like TSMC and Foxconn have not yet made significant investments in the defense drone sector.

Zhongguang Electric, Thunder Tiger Technology and other Bots manufacturers are currently the main manufacturers of defense drones.

Europe has become Taiwan's main drone export market, surpassing the quantity exported to the United States.

Taiwan aims to produce 180,000 civilian drones by 2028 as a contingency for wartime transformation.

The U.S. military encourages turning the Taiwan Strait into a "drone hell" to deter China.

Zhongguang Electric expects to deliver 3,000 drones this year and is calling for assistance from large enterprises.

Andy Hsin, the General Manager of Lite-On Optoelectronics, stated during an interview:

"This year, we expect to deliver 3,000 drones, but the industry's profits are low. Not only is there a lack of scale, but also a lack of a stable supply chain. We hope that other large enterprises can join in as well."

Currently, Taiwan has about 1,000 military drones, but experts say that China has around tens of thousands of military-grade drones.

Thunder Tiger and Lianqiang have successively joined the R&D ranks, and Taiwanese products have advanced to the Russia-Ukraine battlefield.

Known for model airplanes, Thunder Tiger Technology and the largest IT distributor in the Asia-Pacific region, E-Lead, have now also entered the development of military drones and unmanned submarines, even designing underwater vehicles that can dive to 300 meters and multi-rotor AI drones with facial recognition.

Gene Su, the general manager of Thunder Tiger Technology, revealed that some Taiwan-made drones have been sent to the Russo-Ukrainian battlefield for on-site testing.

The image shows the types of AI drones that have been procured and are currently in use in Taiwan. TSMC and Foxconn have not responded regarding their participation.

Although Taiwan has well-known electronics giants like TSMC ) and Foxconn, it has not been much involved in drone production, to which TSMC and Foxconn declined to comment.

According to reports, until April of this year, Foxconn's subsidiary Jingding announced the acquisition of the drone company FairTech, with an investment amount of approximately 70 million USD, marking the first step in entering this field.

The US-China trade war has allowed Taiwan's supply chain to fill the gap, and the Taiwanese government is investing 200 million USD to push for "complete domestic production."

Experts point out that Taiwan's drone market is too small, causing many large companies to back off. Additionally, Chinese drone companies are exporting at low prices, making it difficult for Taiwan to enter international markets. However, interestingly, the US-China trade war has led to China restricting the export of drone components to the West, providing an opportunity for Taiwan's supply chain to "fill the gap."

Currently, the Taiwanese government is working to reduce dependence on China. In August last year, it signed contracts with six manufacturers, totaling 212 million USD, with the condition that they provide drones completely free of Chinese-made parts. The goal is to produce 180,000 civilian drones annually by 2028.

Taiwan has the support of the United States, drawing lessons from Ukraine's "Hell Tactics".

In the face of China's constant military exercises disturbing Taiwan, the U.S. government publicly urged the Taiwanese military last year to be able to "turn the Taiwan Strait into a drone hell" during wartime, with the goal of crippling Chinese forces' landings.

The Pentagon has also allocated 1 billion dollars to study how to transform battlefield experiences from Ukraine into Taiwan's drone strategy, including self-destructing unmanned boats and cyber warfare.

Actively seize large orders from Europe to enhance domestic supply chain capacity and competitiveness.

Taiwan has also organized a delegation to Europe last year to promote drones in order to reduce the cost pressure of relying solely on the domestic market, successfully opening up the Polish market, as well as Germany and the Czech Republic. According to charts from Taiwan's Customs Administration:

"In 2025, the proportion of Taiwan's drone exports to Europe, particularly to Poland, the Czech Republic, and Germany (, will significantly increase, gradually surpassing the quantity exported to the United States, becoming a new focus for Taiwan's drone exports."

Analysts have stated that if a large volume is exported to Europe, it could drive the capacity of Taiwan's drone industry, thereby lowering costs and enhancing the competitiveness of the domestic supply chain.

Long-distance, wind-resistant, fully autonomous, conditions that drones in Taiwan need to overcome.

Unlike Ukraine, Taiwan does not have a land connection to China, thus requiring drones with stronger wind resistance, long-range, and even cross-sea capabilities. Experts suggest that the focus should be on large early warning drones, small bombers, and cyber warfare drones to maximize effectiveness during wartime.

Taiwan's production quantity still needs to be strengthened, and it is crucial to call for participation from local major manufacturers.

From the Russo-Ukrainian battlefield to the tense situation in the Taiwan Strait, drones have already become a key player in modern warfare.

In the future, if Taiwan wants to rely on technology to safeguard peace, it will need assistance from its own tech giants, supply chain integration, and support from the international market. Otherwise, before Taiwan's drone fleet is even established, thousands of Chinese drones will have already encroached. Below is a comparative overview of AI drones from both sides:

)Can the Taiwan Strait War be turned around with AI military technology? From the warning of Anduril founder Luckey, we see Taiwan's defense strategy against China (

This article discusses Taiwan's plan to produce 180,000 AI drones by 2028! TSMC and Foxconn are holding back, while Largan and Thunder Tiger are actively participating. This was first reported by Chain News ABMedia.