Taipei: There is significant potential for Taiwan and Ukraine to deepen cooperation in drone technology as wartime demand accelerates innovation and exposes supply chain vulnerabilities, analysts at a Taipei-based think tank said Thursday.
According to Focus Taiwan, speaking at a report launch hosted by the Research Institute for Democracy, Society and Emerging Technology (DSET), DSET policy analyst Samara Duerr said Ukraine has become “the largest and most advanced testing ground” for unmanned aerial vehicles (UAVs), with drones now accounting for an estimated 95 percent of battlefield casualties. Duerr noted Ukraine’s rapid innovation cycle, driven by frontline feedback and decentralized procurement, has shortened development timelines from months to as little as four to six weeks as battlefield data is fed directly back into production.
She added that while Ukraine could scale production to up to 20 million drones in 2026 if sufficiently funded, the system remains dependent on imported components, creating opportunities for partners such as Taiwan.
Echoing the findings, Taiwan National Drone Industry Association (TNDIA) President Max Lo said the war in Ukraine has underscored the growing cost imbalance in modern warfare, where relatively inexpensive drones can overwhelm costly air defense systems. Lo highlighted that using a US$4 million missile to intercept a US$20,000 Shahed drone is not cost-effective.
Ukraine’s drone production still heavily relies on Chinese components, Lo noted, emphasizing both the risks of supply disruption and the need for alternative suppliers. He mentioned that Taiwan could help fill that gap by providing key components such as chips, batteries, and motors.
On the European front, DSET non-resident fellow Lin Ting-wei said Taiwan has already entered Europe’s drone supply chain in an “invisible way,” given that much of what is happening is not widely known and remains low profile. Lin stated that Taiwan’s exports of complete drones to Europe surged more than 40-fold between 2024 and 2025, with shipments concentrated in Central and Eastern Europe, including Poland and the Czech Republic, and likely transferred onward to Ukraine.
However, Lin warned that this cooperation remains precarious due to a lack of formal recognition in the European Union’s strategic framework. Unlike in the United States, where Taiwan is supported by clear procurement and certification pathways, the EU’s defense roadmap prioritizes working with member states and NATO; it mentions potential partners such as Japan and India, but not Taiwan. Lin highlighted that without a common framework, Taiwanese manufacturers must navigate a patchwork of varying procurement rules across different member states.
Providing a broader context, DSET policy advisor Cathy Fang said Taiwan’s drone industry has expanded rapidly over the past year, with the number of participating companies rising from 50 to 260. Taiwan exported 123,000 drones in 2025, while exports in the first quarter of 2026 alone have already surpassed that figure. Fang added that challenges remain, including limited production scale and supply chain bottlenecks.