Thunder Tiger Technology, a Taiwanese company and a globally leading manufacturer of drones was recently accused by an online media outlet, Big Media, of using Chinese-made flight-control chips in the “training suicide drones” it manufactures.
The allegations meant the drone manufacturer is violating Taiwan’s “non-red supply chain” policy, which seeks to exclude Chinese components from defense procurement.
Thunder Tiger has retained legal counsel and filed a lawsuit alleging that the report is false, seeking NT$50 million (approximately US$1.6 million) in damages, according to news reports.
In a statement, the company’s lawyers noted that the media outlet belongs to Haohouting Cultural and Creative Media Co., Ltd. They further pointed out that its chairman, Pan Tsu-yin, previously served as vice president of the Want Want China Times Media Group and as chairman and general manager of CTi Television, suggesting that the report may have been motivated by specific political objectives.
Thunder Tiger files lawsuit, seeks NT$50 million
According to a report by SET News, the controversy arose during the Army Command’s acceptance inspection of training suicide drones supplied by Thunder Tiger. Questions were raised after the flight-control chips bore the marking “CHN”, leading some to suspect that the drones violated defense procurement rules requiring a “non-red supply chain.”
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In the early hours of May 27, Big Media published an article titled:”Non-Red Supply Chain Falls Apart! Thunder Tiger’s Suicide Drones Use ‘CHN’ Chips.”
Thunder Tiger strongly condemned the report, accusing Big Media of publishing it without proper fact-checking and deliberately using the phrase “non-red supply chain falls apart” to portray the company as linked to China. The company alleged that the report was intended to damage its stock price and tarnish the reputation of Taiwan’s defense industry.
Thunder Tiger has instructed its lawyers to pursue criminal legal action and is seeking NT$50 million in compensation from the media outlet.
Thunder Tiger Technology clarified that the chip in question was developed and manufactured by STMicroelectronics. Its Certificate of Origin (COO) clearly identifies France as the country of origin, thereby meeting the requirements of the government procurement contract, according to Central News Agency.
The company further explained that the semiconductor industry operates through a global division of labor. The “CHN”marking on the chip’s exterior is merely a regional code indicating where the final-stage packaging and testing were carried out; it does not represent the chip’s legal country of origin.
According to World Trade Organization (WTO) international trade practices and standards set by Taiwan’s Ministry of Economic Affairs, the origin of a semiconductor is determined by where the substantial transformation occurs—such as the development of the core intellectual property (IP) and wafer fabrication. Packaging and testing processes do not alter the product’s country-of-origin designation.
Regarding media claims that markings on the chip had been “deliberately ground off,” attorney Li Bing-chi stated that such treatment is a standard industry practice used to protect intellectual property rights and is not intended to conceal the chip’s origin.
He also noted that Taiwan’s Ministry of National Defense is still reviewing the matter through the legally prescribed procedures. Contrary to media reports, there has been no instance in which the chip was immediately deemed non-compliant on the spot.
Is Big Media a pro-China media outlet? Was the report politically motivated?
According to a report by the Mirror Media, citing a statement released by Thunder Tiger’s lawyers, the article originated from the Big Media news website, which is operated by Haohouting Cultural & Creative Media Co., Ltd. The company’s chairman, Pan Tsu-yin, previously served as vice president of the Want Want China Times Media Group and as chairman and general manager of CTi Television. Most of the business operations of the Want Want China Times media group is concentrated in mainland China.
Thunder Tiger’s legal team therefore questioned whether the report was driven by a specific political agenda.
Without first seeking comment or verification from Thunder Tiger, Big Media published an exclusive report in the early hours of May 27, alleging that drones delivered by the company contained Chinese-made chips. The report used language such as:
“The Lai Ching-te administration’s pledge to build a drone ‘non-red supply chain’ has suffered a shocking collapse!”
Thunder Tiger argues that such wording amounted to an attempt to portray the company as having ties to China.
The company further noted that although Big Media later amended parts of the article, it did not change the original sensational headline. It also published a second related report afterward. As a result, Thunder Tiger concluded that the outlet had “knowingly persisted despite being aware the claims were inaccurate.”
Overkill series supply chain approved by the United States
Thunder Tiger stated that, in the interests of national security and protecting public safety, it has spent many years developing military products free of Chinese supply-chain components. The company emphasized that it became the first drone manufacturer in Asia to obtain the U.S. Department of Defense’s Blue UAS cybersecurity certification.
The company argued that the report not only damaged its reputation but could also undermine shareholder interests and confidence in Taiwan’s defense industry. Consequently, it has authorized its lawyers to file criminal complaints under Taiwan’s Securities and Exchange Act and seek NT$50 million in civil damages to defend its corporate reputation and shareholder rights.
According to SET News, Thunder Tiger also sought to dispel public concerns by stressing that the “training suicide drone” involved in the inspection is designed solely to provide the Taiwanese military with low-cost, high-frequency flight training. It belongs to a completely separate product line from the company’s flagship Overkill FPV combat drone system, which has received Blue UAS certification from the U.S. Department of Defense.
Thunder Tiger stated that the entire supply chain of the Overkill series has already passed U.S. government review and that its certification status will not be affected by the current domestic inspection process involving the training drones.
Taiwan’s only Blue UAS-certified drone company
According to reports, Thunder Tiger is currently the only Taiwanese drone manufacturer to have obtained Blue UAS certification from the U.S. Department of Defense.
The company has also successfully passed the first-stage evaluation (Gauntlet I) of the Pentagon’s Drone Dominance Program (DDP) and is expected to participate in the second-stage testing in June as it seeks opportunities in the global drone supply chain.
The Drone Dominance Program (DDP) reportedly aims to procure more than 300,000 attack drones by 2027.
