115th Fiscal Year Budget Passed in Third Reading: NT$63.4 Billion Drone Funding Fully Approved, MOEA Aims for NT$40 Billion Industry Output by 2030

On the 14th, Taiwan's Legislative Yuan passed the 115th fiscal year central government general budget in third reading, fully endorsing NT$63.4 billion in drone-related budgets and the MOEA's Integrated Development Program for Unmanned Vehicle Industries. The MOEA welcomed the decision, stating it establishes a stable policy foundation enabling domestic enterprises to invest in technological R&D, mass production, inspection and verification, and international market expansion.

The government plans to invest NT$44.2 billion from 2025 to 2030 to integrate cross-ministerial resources and foster industrial clusters linked through key supply chain players such as Hanxiang (2634-TW), Leihoo (8033-TW), and Jialing (4976-TW). The goal is to surpass NT$40 billion in drone industry output by 2030, establishing Taiwan as the Asia-Pacific hub for democratic unmanned vehicle supply chains.

The budget passage followed intense negotiations and multiple rounds of voting between ruling and opposition parties late on the 14th. Overall expenditures were reduced by NT$48 billion, representing a 1.689% across-the-board cut. While Premier Cho Jung-tai expressed concern over cuts affecting certain independent agencies and operational funds, the highly anticipated NT$63.4 billion in defense and inter-ministerial drone procurement budgets was smoothly approved. Cho had previously instructed all ministries to safeguard continuity in major industrial and defense policies. With full approval of drone funding, these initiatives now have solid legal and financial backing.

The MOEA stated that the Executive Yuan has officially approved the 'Integrated Development Program for Unmanned Vehicle Industries,' allocating approximately NT$44.2 billion over six years from 2025 to 2030, with about NT$8.3 billion budgeted for FY115. The program centers on three core goals: 'Industrial Development, Defense Autonomy, and Democratic Supply Chains.' It integrates resources across four domains—market, technology, environment, and regulation—to guide the industry away from reliance on China's 'red supply chain' and strengthen Taiwan's competitive advantage in the global unmanned vehicle market.

To maximize regional clustering effects, the MOEA has progressively invested in strengthening the industrial chain. In central Taiwan, R&D subsidies have been provided to key firms such as Hanxiang (2634-TW), Leihoo (8033-TW), Tianyu, and Jialing (4976-TW), supporting their efforts in aircraft manufacturing and critical module development. Plans are also underway to establish an electromagnetic compatibility (EMC) and comprehensive testing laboratory for drones in Taichung. The Civil Aviation Administration under the Ministry of Transportation has set up a drone test site at Guanghua Industrial High School in Taichung. Additionally, the Asia Unmanned Aerial Vehicle AI Innovation Application Research Center in Chiayi continues to deepen corporate入驻 and flight testing, promoting a complete upstream-to-downstream industrial ecosystem.

The MOEA emphasized that the full legislative support for the 115th fiscal year drone budget marks a crucial starting point for Taiwan's drone industry to connect globally. Moving forward, the MOEA will continue close collaboration with other ministries, local governments, and the private sector to comprehensively upgrade verification environments, develop key technologies, and expand into international markets, steadily advancing toward the 2030 target of exceeding NT$40 billion in industry output.