Breaking: Unmanned Vehicle Act Passes Third Reading! KMT Makes Partial Concessions, Allocates 6-Year Budget Totaling NT$240 Billion

Today (27), Taiwan's Legislative Yuan held a crucial vote on the Unmanned Vehicle Development Act. Amid divided voting between the KMT and TPP blocs, the KMT-proposed version, titled the 'Strengthening National Defense Self-Reliance and Unmanned Vehicle Industry Development Act,' passed its third reading. The legislation mandates a total budget of NT$240 billion over six consecutive years—NT$40 billion annually—integrated into the regular annual budget, rather than as a special budget as proposed by the Executive Yuan.

Initially, the KMT insisted that the Ministry of Economic Affairs (MOEA) serve as the sole competent authority. However, in a partial concession, the party revised its proposal before the final vote, adopting a dual-track system. The law designates the MOEA as the primary regulatory body, while procurement matters related to 'national defense and military use' will fall under the jurisdiction of the Ministry of National Defense (MND). The bill also formally defines three types of unmanned systems based on the Executive Yuan's proposal: coastal surveillance drones, coastal attack drones, and small suicide unmanned boats.

Under the new law, the central government must allocate NT$40 billion annually for six years, totaling NT$240 billion, with additional funds to be added if necessary. The Executive Yuan is required to establish a Strategic Special Committee chaired by the Vice Premier. To ensure transparency, both the MOEA and MND must submit annual implementation reports by March 31 each year. For any single unmanned vehicle procurement exceeding NT$100 million, the competent authority must submit a written report to the Legislative Yuan within 30 days of contract award.

Strict penalties are imposed to safeguard cybersecurity and national security. If companies use uncertified, unverified, or high-risk components and systems under substantial foreign control, they will not only lose eligibility for incentives and subsidies but also face fines of 1 to 3 times the amount received. Providing false information during the review process incurs fines of NT$1 million to NT$5 million. Evading or refusing inspections by the competent authority can result in fines of up to NT$3 million, with repeat offenses subject to continuous penalties.