AIT Director Greene: Taiwan's Drone Investment Boosts Defense and Offers Huge Commercial Opportunities [Interview]

In a written interview with the Central News Agency (CNA), American Institute in Taiwan (AIT) Director Raymond Greene stated that the passage of the special defense act is an important first step toward meeting Taiwan's needs. He expressed his expectation that the Legislative Yuan will pass the remaining budget, especially highlighting the urgency of investing in drones, which he believes can not only change Taiwan's security but also bring enormous business opportunities, with a partnership between U.S. and Taiwanese enterprises potentially playing a core role in the global drone sector.

The Legislative Yuan passed the third reading of the "Special Act for Procurement to Safeguard National Security and Strengthen Asymmetric Warfare Capabilities" on the 8th. The budget ceiling is set at NT$780 billion, with the first wave of U.S. military procurement capped at NT$300 billion and the second wave at NT$480 billion.

Today, Director Greene pointed out in the written interview with CNA that the U.S. is encouraged by the Legislative Yuan's passage of the budget, which demonstrates Taiwan's determination to acquire key U.S. systems that are in high demand globally. He expressed great appreciation for Legislative Yuan President Han Kuo-yu and other legislators for building cross-party consensus to support Taiwan's security under high internal and external pressure.

Greene emphasized that the passage of this act is a vital first step in meeting Taiwan's urgent defense needs. He looks forward to the Legislative Yuan working cooperatively to ensure the swift passage of the remaining budget requested by the Ministry of National Defense, including for drones and integrated air and missile defense.

Compared to the Executive Yuan's proposed 8-year, NT$1.25 trillion special defense act, the version passed by the Legislative Yuan excludes commercial procurement and commissioned production cases, leading to a significant reduction in drone-related budgets and raising external concerns that it could harm the development of Taiwan's defense industry.

In response, Greene stated bluntly that Taiwan's necessary investment in drones is urgent, and that Taiwan can quickly build these capabilities. He also noted the strong willingness of Taiwanese companies to enter the drone industry. He said that "if there is market demand," leading U.S. companies would be happy to partner with Taiwanese firms for technology transfer, building local supply chains, and joint R&D. If Taiwan's goal is to build maximum deterrence as quickly as possible, injecting funds into these priorities would allow Taiwan to begin producing drones immediately.

"The mass production of these systems can make a very big difference to Taiwan's security and is also a huge business opportunity," Greene said. Amid soaring global demand for trusted uncrewed systems, it is clear that a partnership between U.S. and Taiwanese firms can play a central role in the global drone sector, just like the role of the U.S. and Taiwan in the AI and semiconductor fields.

Greene stressed that events in the Middle East and Ukraine have revealed the changing nature of warfare, especially the core role played by AI and uncrewed systems. This means Taiwan can, through precise investment and military reforms, rapidly re-establish a military balance across the strait.

He explained the importance of Taiwan building up its indigenous defense industry with three points. First, it can increase the availability of defense systems for Taiwan's military. Second, unlike Ukraine, Taiwan does not share a land border with another country, making resupply in a crisis more challenging. The ability to mass-produce munitions and drones would demonstrate strong deterrence and, in a worst-case scenario, provide immense resilience. Third, Taiwan can contribute to the global demand for defense materials, which also gives Taiwan more opportunities to mass-produce and invest in R&D capabilities, in turn supporting its own defense needs.

Greene said that the U.S., in accordance with the Taiwan Relations Act, will continue to provide Taiwan with the defense articles and services necessary for its self-defense. At the same time, Taiwan can leverage its own advanced industrial and technological base to ensure its own security.