Taiwan to Establish Large UAV Testing Facility in Chiayi County to Boost Drone Industry
Taipei, Taiwan – December 23, 2024 – Taiwan has announced plans to build a state-of-the-art uncrewed aerial vehicle (UAV) testing facility in Chiayi County as part of its efforts to strengthen its drone manufacturing capabilities and enhance its presence in the global market. This initiative, led by the Industrial Development Administration (IDA) and announced by Deputy Director-General Tsou Yu-hsin, marks a significant step forward in developing Taiwan’s drone ecosystem, as reported by the Taipei Times.
The new facility will serve as a cornerstone of the Ministry of Economic Affairs’ (MOEA) uncrewed aircraft system development program, launched in Chiayi at the end of 2023. This program is designed to create a robust hub for the drone industry by fostering innovation and supporting drone-related businesses.
Currently, Chiayi hosts the Asia UAV AI Innovation Application R&D Centre, home to about 50 companies specializing in drone research and development. A small-scale testing facility within the centre allows these businesses to conduct product tests on-site. However, Tsou emphasized the need for a larger, more advanced facility to accommodate industry expansion. “Chiayi is ready to act as a hub for the drone industry as it has a good foundation for manufacturing,” he stated, adding, “Now, we need a huge facility with larger runways for testing.”
Plans for a Major Industrial Park
In addition to the new testing venue, the MOEA has announced plans to develop an aerospace and drone industrial park, which will house approximately 100 companies. Scheduled for completion by 2028, the park will serve as a comprehensive base for drone development and manufacturing.
The development aligns with increasing global interest in drone technology, particularly in military applications. This trend has gained momentum since Russia’s invasion of Ukraine, highlighting the strategic importance of drone technology.
Taiwan’s Strategy Against Market Giants
China currently dominates the global drone market, with Shenzhen-based DJI holding an impressive 74% share of the global consumer drone segment. Recognizing this dominance, Tsou noted the concerns among democratic nations regarding China’s control over the drone supply chain. Taiwan aims to position itself as a viable alternative by establishing a “non-red drone supply chain,” potentially carving out a significant market share.
To further bolster its global standing, Taiwan established the Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA) in September 2024. Led by Aerospace Industrial Development Corp., TEDIBOA consists of over 120 members specializing in drone system integration and critical component development. “The move to form TEDIBOA is the most efficient way to help Taiwanese drone developers seize on global business opportunities,” Tsou said.
Government Support for the Drone Industry
The Taiwanese government is also extending strong support to the local drone sector. Recently, the Ministry of National Defence awarded contracts to four Taiwanese companies—Taiwan UAV, Evergreen Aviation Technologies Corp, MiTAC Information Technology Corp, and Coretronic Intelligent Robotics Corp—to deliver 3,422 drones over the next five years.
Moreover, the MOEA has allocated NTD 110 million (USD 3.36 million) for projects focused on AI imaging and cost-efficient flight control dashboard development. The funding is currently awaiting approval from the Legislative Yuan.
Projected Growth for Taiwan’s Drone Sector
Taiwan’s drone industry is on a growth trajectory, with the production value expected to hit NTD 5 billion in 2024. Projections indicate a significant increase to NTD 40 billion by 2030, underscoring the industry’s vast potential for expansion and innovation.
With these strategic initiatives, Taiwan is not only positioning itself as a key player in the global drone market but also creating opportunities to develop a robust and sustainable drone manufacturing ecosystem.
