Taiwan Cabinet Approves 210B TWD Special Budget for Indigenous Drones and Unmanned Vessels

The Executive Yuan of Taiwan passed a draft of the 'Special Statute for the Procurement of Indigenous Unmanned Vehicles' today, earmarking up to 210 billion TWD. The budget, spanning from August 2024 to the end of 2031, focuses on procuring coastal surveillance drones, coastal attack drones, and small kamikaze (suicide) unmanned vessels. Premier Cho Jung-tai stated that the goal is to achieve 'local supply, indigenous production, and autonomous maintenance.'

This follows a 780 billion TWD defense budget passed by the Legislature in May, which primarily covered major foreign military purchases but excluded commercial-off-the-shelf and domestic manufacturing items. President Lai Ching-te has consistently advocated for developing the drone industry to supplement combat needs through additional and special budgets.

The procurement list includes various coastal drones and unmanned surface vessels aimed at boosting the military's asymmetric combat power. The Ministry of National Defense plans to use the 'resource-concentrated, scale-stable' nature of this budget to build a 'Non-Red Supply Chain,' ensuring that the armed forces maintain a credible deterrent without reliance on Chinese components.

Premier Cho highlighted that beyond defense, this will stimulate the domestic economy. The drone industry encompasses diverse fields such as manufacturing, battery systems, optoelectronics, AI, communications, and software development, positioning it as a new strategic industry for Taiwan.

The draft will now be sent to the Legislative Yuan for deliberation. Premier Cho has instructed the MND to actively communicate with lawmakers to ensure swift passage.