U.S. defense companies and technology startups have signed at least 13 deals with Taiwanese hardware firms since September 2025 to build a secure drone supply chain outside China. The collaborations pair U.S. software and system design with Taiwan’s advanced manufacturing capabilities to produce uncrewed aircraft and boats.
The initiative aims to meet the U.S. military’s demand for a “non-red” supply chain and strengthen Taiwan’s domestic defense industry. Startups including Anduril and Shield AI are increasing their sourcing from Taiwan. Publicly traded firms are also involved: AeroVironment is sourcing components for systems such as its Switchblade drone, while Northrop Grumman is exploring collaboration on missile defense modernization.