Premier Cho: General Budget Insufficient for Effective Unmanned Vehicle Development
At the Legislative Yuan on May 20, Premier Cho Jung-tai stated that for the long-term, effective development of Taiwan's unmanned vehicle industry, the vast required budget cannot be covered by the general government budget alone and will require other supplementary measures. This statement comes after a NT$470 billion cut to the special budget for 'Defending National Security and Strengthening Asymmetric Warfare Capabilities.' Minister of National Defense Wellington Koo also emphasized that building a self-reliant drone industrial chain that excludes the red supply chain is crucial for national defense resilience. He expressed the government's hope to foster the local non-red supply chain and participate in democratic supply chain cooperation through stable, long-term orders.
📋 Article Processing Timeline
- 📰 Published: May 20, 2026 at 22:21
- 🔍 Collected: May 20, 2026 at 22:31 (10 min after Published)
- 🤖 AI Analyzed: May 20, 2026 at 22:39 (7 min after Collected)
Premier Cho Jung-tai stated today that for the unmanned vehicle industry to have long-term and effective development, it would inevitably require a considerable budget and implementation period. If the scale is that large, it's clear that it cannot be entirely covered by the current government budget. Other complementary or additional methods would be necessary to fully develop the unmanned vehicle industry within a reasonable timeframe.
The Legislative Yuan this afternoon invited the Premier, the head of the Directorate-General of Budget, Accounting and Statistics, the Minister of Finance, the Minister of National Defense, and other relevant ministry heads to report on the drafting process of the 'Special Budget for the Central Government's Plan to Safeguard National Security and Enhance Asymmetric Combat Capabilities for Fiscal Year 2026' and to answer questions.
On the 8th, the Legislative Yuan passed the 'Special Act for the Procurement Plan to Safeguard National Security and Enhance Asymmetric Combat Capabilities' in its third reading. The budget was capped at NT$780 billion, excluding commercial and contracted production cases, which was NT$470 billion less than the Executive Yuan's original proposal. During questioning, DPP Legislator Fan Yun asked how much of the portion cut by the KMT and TPP legislators was intended for strengthening asymmetric combat capabilities.
Cho Jung-tai said the crux of the entire special act and budget is to leverage Taiwan's asymmetric capabilities. The Russia-Ukraine war is an example of asymmetric warfare, where a smaller force takes on a larger one. This requires long-term, large-scale, and stable support systems, and even the ability for independent R&D and manufacturing, to ensure supply when foreign aid cannot arrive in time.
Minister of National Defense Wellington Koo pointed out that besides mobility, concealment, and lethal firepower, the most important aspect of asymmetry is the concept of cost-effectiveness. By creating a self-reliant defense industry chain and producing domestically rather than buying from abroad, Taiwan can maintain resilience in wartime. This has been clearly demonstrated in the Russia-Ukraine war, and Russia is now also developing its own drone industry supply chain.
Fan Yun noted that The Economist magazine had an in-depth report on Taiwan's drone industry, mentioning that 70-80% of the global unmanned vehicle supply chain is occupied by China. Taiwan has now developed components completely free of Chinese parts, which are more price-competitive and much cheaper than similar Japanese products without Chinese components. Taiwanese manufacturers interviewed also expressed that their biggest worry is political factors causing demand to be unstable—'here one year, gone the next'—and are concerned that if the Russia-Ukraine war ends, market demand will decrease, making it impossible for the local non-red supply chain to continue.
Koo stated that the report mentioned that Taiwan's drone industry exports in 2025 are projected to be 35 times greater than in 2024. This shows that with its strengths in semiconductors, software development, and precision machinery, Taiwan has excellent conditions for developing a drone industry chain. Therefore, the government hopes to use long-term, large-scale orders and a stable budget to give local manufacturers the confidence to build up the industry, which, combined with foreign technology, can create a virtuous cycle of iterative innovation.
Koo also said that looking at the US-Iran conflict, Iran still has the capability to pose a certain threat with drones. Even if its air defense and command systems are taken out, a certain number of drones can still pose a regional threat. The United States, in order to develop or counter drones, has started to adopt a cost-effective concept. Japan is also building its own self-reliant drone defense industry capability. Democratic countries are forming a democratic supply chain, excluding components from the red supply chain, and Taiwan must participate in this with greater effort.
Regarding Fan Yun's mention that the Executive Yuan is now considering proposing a new special act, a supplementary budget, or an annual budget to fill the NT$470 billion gap in military procurement, and which option would be better, Cho Jung-tai said the Executive Yuan needs to study it further. He reiterated that if the unmanned vehicle industry is to develop effectively over the long term, it will require a considerable budget and timeline. If the scale is this large, it's clear it cannot be fully covered by the current government budget; other complementary or additional measures are needed to fully develop the unmanned vehicle industry within a reasonable time.
The Legislative Yuan this afternoon invited the Premier, the head of the Directorate-General of Budget, Accounting and Statistics, the Minister of Finance, the Minister of National Defense, and other relevant ministry heads to report on the drafting process of the 'Special Budget for the Central Government's Plan to Safeguard National Security and Enhance Asymmetric Combat Capabilities for Fiscal Year 2026' and to answer questions.
On the 8th, the Legislative Yuan passed the 'Special Act for the Procurement Plan to Safeguard National Security and Enhance Asymmetric Combat Capabilities' in its third reading. The budget was capped at NT$780 billion, excluding commercial and contracted production cases, which was NT$470 billion less than the Executive Yuan's original proposal. During questioning, DPP Legislator Fan Yun asked how much of the portion cut by the KMT and TPP legislators was intended for strengthening asymmetric combat capabilities.
Cho Jung-tai said the crux of the entire special act and budget is to leverage Taiwan's asymmetric capabilities. The Russia-Ukraine war is an example of asymmetric warfare, where a smaller force takes on a larger one. This requires long-term, large-scale, and stable support systems, and even the ability for independent R&D and manufacturing, to ensure supply when foreign aid cannot arrive in time.
Minister of National Defense Wellington Koo pointed out that besides mobility, concealment, and lethal firepower, the most important aspect of asymmetry is the concept of cost-effectiveness. By creating a self-reliant defense industry chain and producing domestically rather than buying from abroad, Taiwan can maintain resilience in wartime. This has been clearly demonstrated in the Russia-Ukraine war, and Russia is now also developing its own drone industry supply chain.
Fan Yun noted that The Economist magazine had an in-depth report on Taiwan's drone industry, mentioning that 70-80% of the global unmanned vehicle supply chain is occupied by China. Taiwan has now developed components completely free of Chinese parts, which are more price-competitive and much cheaper than similar Japanese products without Chinese components. Taiwanese manufacturers interviewed also expressed that their biggest worry is political factors causing demand to be unstable—'here one year, gone the next'—and are concerned that if the Russia-Ukraine war ends, market demand will decrease, making it impossible for the local non-red supply chain to continue.
Koo stated that the report mentioned that Taiwan's drone industry exports in 2025 are projected to be 35 times greater than in 2024. This shows that with its strengths in semiconductors, software development, and precision machinery, Taiwan has excellent conditions for developing a drone industry chain. Therefore, the government hopes to use long-term, large-scale orders and a stable budget to give local manufacturers the confidence to build up the industry, which, combined with foreign technology, can create a virtuous cycle of iterative innovation.
Koo also said that looking at the US-Iran conflict, Iran still has the capability to pose a certain threat with drones. Even if its air defense and command systems are taken out, a certain number of drones can still pose a regional threat. The United States, in order to develop or counter drones, has started to adopt a cost-effective concept. Japan is also building its own self-reliant drone defense industry capability. Democratic countries are forming a democratic supply chain, excluding components from the red supply chain, and Taiwan must participate in this with greater effort.
Regarding Fan Yun's mention that the Executive Yuan is now considering proposing a new special act, a supplementary budget, or an annual budget to fill the NT$470 billion gap in military procurement, and which option would be better, Cho Jung-tai said the Executive Yuan needs to study it further. He reiterated that if the unmanned vehicle industry is to develop effectively over the long term, it will require a considerable budget and timeline. If the scale is this large, it's clear it cannot be fully covered by the current government budget; other complementary or additional measures are needed to fully develop the unmanned vehicle industry within a reasonable time.