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Taiwan is increasing its drone production to strengthen defense capabilities against China, emphasizing the need for deeper involvement from its technology sector. Former U.S. commerce official Alan Estevez indicated that Taiwan's reliance on smaller firms is a significant barrier, advocating for the participation of major companies like those in semiconductors to address supply chain challenges.

Taiwan is also reducing dependencies on Chinese components, with a focus on creating a resilient domestic supply chain. Collaborations, such as the one between the Metal Industries Research and Development Centre and the National Chung-Shan Institute of Science and Technology, aim to advance drone manufacturing.

The U.S. has approved drone sales to Taiwan, including a recent $360 million deal for small armed drones, reinforcing Taiwan's asymmetric warfare capabilities. Challenges remain in production scalability, economic hurdles, and the integration of drones into defense strategies, necessitating government incentives and international collaborations.