TAIPEI (Taiwan News) — Defense Minister Wellington Koo (顧立雄) confirmed on Tuesday that Taiwan and the US are partnering on civilian and military drones.

Koo said the US wants opportunities to coordinate with Taiwan, particularly in building a secure, non-Chinese supply chain for drones, per Liberty Times. He said that both private sector firms and the National Chung-Shan Institute of Science and Technology (NCIST) have been working on developing related technologies.

Koo said that a US Department of Commerce delegation visited Taiwan in September, and there has been significant progress since then. He said the main purpose is to leverage countries and their strengths to counter China’s dominance in the drone sector, especially for key components. 

"Once a drone is opened up, it is hard to avoid finding Chinese-made components," Koo said.  

Koo added that drone technology is advancing rapidly among companies in the US and elsewhere and promising results will emerge soon. The most crucial aspect is for Taiwan to develop its drone production capabilities and enhance overall defense operations.

Following the visit of 26 US companies to Taiwan on Sept. 23, more American firms have reportedly engaged in discussions with Taiwan entities. The main goal is to integrate advanced drone technologies through collaboration on high-quality, mature subsystems.

He said that US cooperation differs from the Asia Silicon Valley Development Agency’s investment promotion efforts, as NCIST is conducting negotiations with the US independently. There are two main approaches to cooperation.

First, for mature foreign drone models, the aim is to integrate Taiwan’s superior subsystems into the existing supply chain. Taiwan's lower manufacturing costs and high competitiveness also make local production an attractive option.

Second, Taiwan can selectively introduce foreign drone subsystems, saving time on research and development while complementing the local supply chain.

Sources said that if NCSIST needs to produce the next generation of military-grade products, it can use this opportunity to integrate mature subsystems from non-Chinese or “non-red” supply chains. This would achieve rapid development and accelerate the fulfillment of the military’s needs.

Regarding the Minxiong Aerospace and UAV Industry Park's role in this initiative, Koo said the park’s primary focus is research and validation. The minister said manufacturing facilities do not necessarily need to be located there. 

Instead, fostering a competitive environment where stakeholders refine their technologies and build a strong ecosystem is the most beneficial approach, Koo said. 

A source added that while Minxiong Park is a national policy initiative, its development is highly desirable. The NCSIST can assist private companies with testing, simulation, and design, as well as addressing production challenges. 

More importantly, the park can serve as a production expansion base, forming a strong national drone team cluster where firms can exchange expertise and share resources.

In an interview with Liberty Times on Friday, American Institute in Taiwan Director Raymond Greene said that if the Russo-Ukrainian War concludes, he expects the US will shift its focus to Taiwan’s defense needs. He also noted the potential for US-Taiwan collaboration in local production within the dual-use sector.