Taiwan is treating drones as a dual pillar of both defence and industry — good news for local supply chains, and a deterrent signal to Beijing.

• The Legislative Yuan is pushing for a third reading of the special act on unmanned vehicles on the 28th. The Executive Yuan's version would spend NT$210 billion on littoral surveillance and reconnaissance drones, littoral attack drones, and suicide unmanned surface vessels.
• Hsiao Bi-khim said Taiwan is a linchpin of peace and stability in the Indo-Pacific, and that if its asymmetric warfare capabilities are weakened, Beijing could misjudge Taiwan's resolve to defend itself.
• The ruling and opposition parties have not reached consensus on the 14 versions of the bill, with the biggest point of contention being whether the competent authority should be the Ministry of National Defense or the Ministry of Economic Affairs. The government insists the Ministry of National Defense should take the lead, because only the military fully understands operational requirements.
• The government is supporting the industry with long-term and large-volume orders: past orders were too small, pushing unit prices above international market rates and leaving manufacturers reluctant to invest in automated production lines.
• Taiwan's opportunity lies in the trust advantage of the "non-red supply chain," combined with AI decision-making capabilities that allow drones to cope with rough seas and GPS jamming.

Outlook: If the act passes its third reading on schedule, orders will quickly translate into domestic production capacity, and drones will become Taiwan's next bet on an export industry.