A nascent drone partnership between Japan and Taiwan is gaining momentum as both seek to reduce reliance on China-dominated supply chains. This year, Taiwanese manufacturer 7A Drones signed two agreements with Japanese companies to collaborate on large-scale logistics drones, autonomous drone development, and the creation of a Japan-Taiwan drone supply chain.
The agreements come as Japan moves to diversify its drone supply sources amid growing concerns over supply chain vulnerabilities. In January 2026, China imposed strict export controls on dual-use items destined for Japan, including drones, covering sensitive sectors such as biotechnology, aerospace, and telecommunications.
Japan imported 124,936 drones from China in 2025, accounting for more than 90% of its drone imports. The new restrictions have accelerated efforts by Japan and its partners to establish a “non-red” (non-Chinese) drone supply chain centered on joint development, manufacturing, and technology sharing to enhance industrial resilience and regional security.
The Japanese government has allocated more than ¥100 billion ($694.7 million) to support the domestic drone industry. In September 2025, the Ministry of Economy, Trade and Industry announced a plan to produce 80,000 Japan-made drones by 2030, aiming to expand domestic manufacturing capacity and reduce supply chain risks.
Taiwan’s established “non-red” manufacturing capabilities complement Japan’s ambitions, although experts note that Japan still faces challenges in scaling up its own industrial base.
Taiwan is also investing in the expansion of its drone sector, with the government planning to allocate NT$44.2 billion ($1.4 billion) from 2025 to 2030 to support an industry that currently includes 267 companies involved in aircraft assembly, communications technology, power systems, and flight control.
Government agencies have been tasked with strengthening domestic supply chains, expanding the local market, promoting exports, and improving international certification.
Building a Trusted Drone Supply Chain
The partnership builds on cooperation that has developed over several years. Since 2020, companies, industry groups, and research institutes on both sides have signed 15 agreements aimed at strengthening autonomous technologies and supply chain security.
A milestone came in June 2025 at the 10th Japan Drone exhibition in Tokyo, where a Taiwanese drone industry delegation signed a memorandum of understanding (MOU) with a Japanese drone industry alliance.
The collaboration combines Japan’s strengths in precision machinery and automation with Taiwan’s expertise in semiconductors, cybersecurity, manufacturing, and systems integration.
A key development came in June 2025 at the 10th Japan Drone exhibition in Tokyo, where Taiwan’s drone industry delegation signed a memorandum of understanding (MOU) with Japan’s industry association.
The MOU was signed by the Taiwan Excellence Drone International Business Opportunities Alliance (TEDIBOA) and the Japan UAS Industry Development Association (JUIDA), with participation from Taiwan’s government-backed Industrial Technology Research Institute (ITRI) and Aerospace Industrial Development Corporation (AIDC).
Current projects integrate Japanese technologies, including solid-state batteries, engines, and heat-resistant coatings, with Taiwanese strengths in cameras, motors, and battery technologies.
Despite growing momentum, the partnership remains in its early stages and is largely industry-led. According to DSET estimates, Taiwan exported just 45 drones to Japan in 2025, while Japan exported only three drones to Taiwan.
Security Demand Drives Drone Cooperation
Beyond commercial applications, drones are becoming increasingly important for national security, adding urgency to efforts by Japan and Taiwan to secure reliable sources for unmanned systems.
Taiwan has emerged as a potential partner due to its established manufacturing capabilities and experience producing drone components. Its companies have supplied drones and related technologies used in Ukraine and Eastern Europe, demonstrating their production capacity and reliability in real-world environments.
According to a report by a Taiwanese think tank, Taiwan’s drone shipments totaled 136,010 units in the first quarter of 2026, surpassing the 107,433 units exported to Europe in 2025.
Although Tokyo and Taipei do not maintain formal diplomatic relations, Japan has emerged as one of Taiwan’s most important security and political partners after the United States.
In September 2023, Japan appointed a serving government official as its de facto defense attaché in Taiwan, marking a further step in security cooperation.
Japan’s defense ministry explicitly stated in its 2021 Defense of Japan white paper that stability in the Taiwan Strait is important for Japan’s own security, reflecting Tokyo’s regional outlook.
Challenges Remain
While Japan has made progress in developing its drone industry, it continues to lag behind leading producers in mass-production capacity and domestic supply chain development. The country has yet to establish a large-scale industrial ecosystem capable of supporting widespread drone deployment.
Taiwan also faces challenges in expanding its drone sector. Opposition lawmakers recently cut more than one-third of the government’s proposed defense funding, including significant reductions to programs aimed at strengthening domestic drone production capabilities.
The cuts have raised concerns over Taiwan’s unmanned systems ambitions and could make it more difficult for local companies to secure partners for technology cooperation, component supply, and joint development.
Meanwhile, government policies have not always kept pace with growing business ties. Japan and Taiwan will need to align regulations covering drone certification and communications systems to facilitate cooperation in dual-use technologies.
Japan also needs greater clarity regarding Taiwan’s market opportunities and technological capabilities.
As the global drone market is projected to reach $50 billion by 2030, the emerging Japan-Taiwan partnership reflects a broader shift toward building trusted supply chains in East Asia amid growing concerns over dependence on China.
Although current cooperation remains industry-led and limited in scope, growing geopolitical and supply chain pressures are likely to encourage deeper institutional ties between the two sides.
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Author: Varuna Shankar
Dr Varuna Shankar is an associate fellow at India’s World Magazine and a Non-Resident Vasey Fellow at Pacific Forum.
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