TAIPEI, Taiwan—Taiwan's state-backed drone industry alliance has grown from 50 members at its September 2024 inception to more than 200 today and is expeditiously decoupling from China-based supply chains, Chairman Hu Kai-Hung tells Aviation Week.
Hu, who also serves as the chairman of Taiwan's Aerospace Industrial Development Corporation (AIDC), says that the drone alliance is laser-focused on creating a “non-red supply chain”—the red referring to China—to align with the requirements of the U.S., which has flagged the security threats posed by Chinese drones.
Members of the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) are required to prove the origin of their components, Hu says.
The alliance includes the largest Taiwanese drone manufacturers, like Geosat Aerospace and Thunder Tiger, as well as many smaller companies that specialize in the production of specific uncrewed aircraft system (UAS) components.
Hu acknowledges that Taiwan faces considerable challenges breaking into an industry dominated by China. Shenzhen-based DJI alone has an estimated 70% share of the global UAS market. “Taiwan is a latecomer to the drone sector, but it can leverage its advanced technology and manufacturing capabilities to cooperate with the growing number of countries that want a reliable alternative to China,” he says.
In addition to the U.S., Tediboa has made inroads in Eastern Europe, signing agreements with Estonia, Latvia, Lithuania and Poland. They make ideal partners for Taiwan because of their experience supporting Ukraine—including with autonomous technologies—as it defends itself against Russia's full-scale invasion, and their antipathy toward authoritarian expansionism, Hu says.
Most recently, Tediboa has stepped up cooperation with Asian countries, including Japan and India—both of which are intensifying efforts to reduce dependence on Chinese drone suppliers. Japan said in February it would expand its supply of domestically produced UAS to partner countries in the Indo-Pacific beginning in the 2025 fiscal year. India has canceled three orders totaling 400 military UAS due to security concerns about China-made components.
While Tediboa feels increasingly confident about the integrity of its supply chain, there is one area which Hu sees as high risk. “We are worried about the reliability of access to rare earths and other critical minerals dominated by China,” he says, noting how Beijing has weaponized its control of those supply chains in its trade war with the U.S. “These are crucial for certain drone components, and we don't have an easy replacement if China cuts off supply to Taiwan.”