Taiwan Drones Gain Strategic Access to US and Global Democratic Markets

By Wang Youde

Amid global geopolitical shifts and the rise of the “non-China supply chain,” Taiwan’s drone industry has reached a strategic turning point. Recently, the Industrial Technology Research Institute (ITRI) of Taiwan officially joined the U.S. Association for Unmanned Vehicle Systems International (AUVSI) “Green UAS” program, becoming the only certified evaluation hub outside the U.S. This move not only symbolizes deep mutual trust between Taiwan and the U.S. in security and defense technology cooperation, but also opens the door for Taiwan’s drone industry to access the U.S. and global democratic allies’ markets.

Key agreement signed: deepening Taiwan-US digital fortress cooperation

ITRI and AUVSI, the world’s largest drone industry organization, recently signed an authorization and service agreement in Washington, D.C. Under the agreement, ITRI will serve as an AUVSI-authorized cybersecurity testing and certification lab in Taiwan, responsible for penetration testing and technical network assessments. Jacob Helberg, U.S. Deputy Assistant Secretary for Economic Affairs, highlighted on X (formerly Twitter) that this cooperation extends the “Green UAS” certification program to Taiwan, making it the only certified hub outside the U.S. This allows Taiwan-made (MIT) drone systems to undergo international standards verification for cybersecurity, safety, and supply chain integrity domestically.

Karin Lang, Deputy Director of the American Institute in Taiwan (AIT), also attended the signing. She emphasized that AIT’s presence underscores the strategic importance of strengthening a trusted, secure, and resilient technology supply chain between the U.S. and Taiwan.

Certification system explained: from green UAS to blue UAS

The U.S. drone certification system primarily has two tiers: commercial “Green UAS” and military “Blue UAS”:

1. Green UAS (Green Label): For non-defense purposes but requiring high cybersecurity standards. Products must comply with the National Defense Authorization Act (NDAA) and avoid critical components from restricted countries.
2. Blue UAS (Blue Label): Led by the U.S. Defense Innovation Unit (DIU), designed for U.S. military procurement. Products with this certification gain official access to U.S. military and NATO supply chains. Industry insiders see Green UAS certification as a necessary stepping stone for Taiwanese manufacturers to become eligible for U.S. military procurement.

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Taiwan’s Thunder Tiger Technology has already achieved Blue UAS certification for its domestically developed “Overkill FPV” suicide drone series, becoming the first Taiwanese company trusted by the U.S. military. Other companies, such as Hanxiang, Zhongguang Intelligent Robotics, and System Electric, are actively seeking Green UAS certification or collaborating with U.S. firms to integrate into the American market.

Expert recommendations: launching ‘drone diplomacy’ and operational validation

Zhou Yuping, former director of the Missile Command Planning Department, provided analysis on this major development. He argued that Taiwan should not merely aim for self-sufficiency, but leverage the geopolitical benefits of the “non-China supply chain” to position itself as a global hub for drone manufacturing and testing.

1. Hanxiang Model and Mass Production Outsourcing:
   Zhou suggests Taiwan emulate Hanxiang’s approach by partnering with international top drone companies such as Anduril and Skydio. The U.S. would provide advanced system architecture, while Taiwan would leverage its precision machinery and electronics assembly capacity for mass production outsourcing or subsystem supply, addressing domestic capacity utilization challenges.
2. Regulatory Adjustments and Open Test Flight Zones:
   To address insufficient flight testing space, Zhou recommends amending the Industrial Development Act to open high-frequency, long-range, and high-speed drone test zones in areas like Chiayi, Changhua, and Hualien, including maritime test zones, fully aligned with international cybersecurity standards. Tax credits and R&D subsidies should also be provided for exports meeting non-China supply chain certification.
3. Operational Data for Technical Optimization:
   Zhou emphasized initiating “drone diplomacy,” supplying Taiwan’s mature drone models (reconnaissance or suicide drones) to allied countries for defense purposes, in exchange for operational data. These valuable datasets would feed back into rapid performance optimization and upgrades.

Government blueprint: building Asia’s democratic supply chain hub

The Taiwanese government has shown strong support for the drone industry. The Executive Yuan approved the “Unmanned Vehicle Industry Development Integrated Plan,” allocating NT$44.2 billion from 2025 to 2030, aiming for Taiwan’s drone output value to surpass NT$40 billion by 2030.

• Strong Domestic Demand: Over the next three years, public sector procurement will exceed 100,000 drones, including 50,000 commercial and 48,000 defense drones.
• Alliances in Action: The Ministry of Economic Affairs’ “Taiwan Excellence Drone Overseas Business Alliance” (TEDIBOA) has integrated over 250 upstream and downstream companies, signing MOUs with the U.S., Japan, Poland, Czech Republic, and five other countries.

Customs statistics show that in the first half of 2024, Taiwan’s drone exports grew 749 percent year-on-year, with Poland, the U.S., Germany, and the Czech Republic as main markets. This demonstrates that in the global “de-China-ization” context, Taiwan’s strengths in chips, communication modules, optical components (e.g., Largan Precision), and ground control stations are translating into real market share.

Building a trust chain across time zones and languages

ITRI stated that the cooperation with AUVSI is not just a formal agreement but a responsibility. The partnership will overcome time zone and language barriers, significantly reducing logistics and time costs for Taiwanese firms seeking international certification.

By becoming the only Green UAS certification hub outside the U.S., Taiwan has formally established itself as a key node in the “democratic supply chain.” As ITRI noted, drone competition is no longer just about performance—it now encompasses cybersecurity, supply chain trustworthiness, and overall governance capability. With strong cost efficiency and cybersecurity expertise, Taiwan is transforming from an Asian manufacturing base into a global defender of drone safety standards.