Taiwanese Firms Enter U.S. Drone Supply Chain as Metal Centre Drives International Collaboration

(CNA reporter Tseng Yun-ting, Taipei, 14th) The Metal Industries Research & Development Centre recently signed a memorandum of understanding with Anduril, a major U.S. defense technology company. The Centre stated that through the 'Taiwan hardware manufacturing, U.S. AI system integration' model, Taiwanese firms could upgrade from component suppliers to system-level partners. It is estimated that over the next 3 to 5 years, the number of Taiwanese companies participating in the supply chain could double, creating over NT$1 billion in new business opportunities.

Anduril is a representative U.S. defense tech unicorn founded in 2017 by Palmer Luckey, who also established the virtual reality device company Oculus VR. The Centre noted that in less than 10 years since its founding, Anduril has rapidly grown from a startup of just a few dozen people to over 4,000 employees, securing major projects with the U.S. Department of Defense and allied nations, and advancing rapidly in the defense technology sector.

Regarding the significance of the collaboration, the Centre pointed out that Anduril’s technological core lies in its 'Software-Defined Defense' model. By integrating AI algorithms, sensor fusion, autonomous decision-making systems, and command-and-control platforms, it can rapidly transform technology into deployable combat capabilities and continuously iterate products using tech-industry thinking.

The Centre explained that traditional defense equipment often requires development cycles of several years due to military specifications, certifications, and personnel safety requirements. In contrast, drone and autonomous systems emphasize real-world validation and rapid adjustments. Anduril’s ability to quickly respond to new battlefield demands and significantly shorten development timelines is one of its key differences from traditional defense industries.

On the collaboration’s origins, the Centre stated that the partnership with Anduril was not formed overnight but built over years of ongoing dialogue on drone markets, technologies, testing, and supply chains, establishing a foundation of long-term trust.

The Centre emphasized that given Anduril’s strong market and technical resources in the international defense sector, it does not require assistance from Taiwan to expand its market. Therefore, its decision to collaborate with the Centre reflects strong recognition of the Centre’s supply chain integration capabilities and the strength of Taiwan’s industrial ecosystem.

The Centre noted that it has long participated in government policy implementation, supply chain integration, and technology validation, possessing the ability to connect upstream and downstream industries. It has already linked over 300 drone-related companies and continues to promote non-red supply chains and international cooperation, serving as a key gateway for international firms to access Taiwan’s supply chain.

The Centre highlighted that Taiwan possesses world-class manufacturing capabilities and a complete supply chain system in electronics, communications, precision machinery, and semiconductors. This collaboration combines Taiwan’s hardware strengths with Anduril’s expertise in AI-powered autonomous flight, command-and-control platforms, and autonomous decision-making, paving the way for a 'Taiwan hardware manufacturing, U.S. AI system integration' model.

Currently, over 10 Taiwanese companies have already entered Anduril’s supply chain, covering areas such as airframe structures, power systems, communication modules, electronic systems, and key components. These firms are in stages of sample verification, trial production, or small-volume supply. If defense supply chain certification progresses smoothly, more Taiwan-made key components and subsystems are expected to enter formal production and supply within the next 1–2 years.

Looking ahead, the Centre mentioned that Anduril has previously indicated in interviews that if Taiwan’s market demand and procurement scale continue to grow, it would not rule out establishing local manufacturing and further investment in Taiwan. Overall, this collaboration is expected not only to help Taiwanese firms enter the international defense supply chain but also to drive exponential growth among supply chain firms over the next 3–5 years, generating over NT$1 billion in new business and attracting international technology and investment into Taiwan’s drone industry. (Editor: Su Chih-tsung) 1150614