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Taiwan's Ministry of National Defense plans to significantly increase drone production capacity in 2026, emphasizing unmanned aerial vehicles as essential for asymmetric warfare. The strategy focuses on high-volume, cost-efficient production, including investments in domestic drone ICs to reduce foreign reliance.

Policymakers aim for tens of thousands of UAVs, driving demand for ruggedized electronics. Increased defense electronics spending will support local suppliers for chips and systems amid geopolitical concerns.