Taipei: An opposition-supported drone procurement law passed on Thursday is poised to potentially impede Taiwan's acquisition of essential unmanned systems for its defense, as it subjects funding to ongoing annual budget negotiations, analysts informed CNA.
According to Focus Taiwan, lawmakers from the main opposition Kuomintang (KMT) and the Taiwan People's Party (TPP) successfully passed the Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry with a majority vote. This new legislation presents an alternative to the Cabinet's proposed NT$210 billion (US$6.6 billion) special budget, originally scheduled to run from August 2026 to the end of 2031.
The act stipulates that annual spending will be capped at NT$40 billion for six years, although additional funding can be allocated based on actual needs, subject to legislative approval. It encompasses three types of domestically produced unmanned systems sought by the Ministry of National Defense (MND): coastal surveillance drones, coastal attack drones, and small suicide unmanned surface vessels (USVs). Notably, the act also permits funding for a broader range of unmanned systems, including imported models.
However, officials from the ruling Democratic Progressive Party have cautioned that the NT$40 billion annual spending cap may be insufficient to cover all drones the MND plans to procure in 2027.
Cathy Fang, a policy analyst at Taiwan's government-funded Research Institute for Democracy, Society and Emerging Technology (DSET), remarked that while the act's provision for additional funding introduces flexibility, it also breeds uncertainty. "If budget negotiations delay contracting or deliveries, phased procurement risks becoming interrupted procurement," Fang stated.
Fang highlighted that for drones, timeliness is crucial. She cited examples from Ukraine and other rapidly advancing programs where drone technology evolves every three to six weeks. A one-year delay could result in missing roughly eight to 17 potential iteration cycles, she noted.
William Yang, a senior analyst for Northeast Asia at the International Crisis Group, expressed concerns that political deadlock could delay funding for urgent asymmetric capabilities if each tranche requires legislative approval. Since the 2024 legislative elections, the KMT and TPP have held a majority in the Legislature, enabling them to control the legislative agenda.
Yang warned that ongoing confrontations between the opposition-controlled Legislature and the government might extend into future drone procurement budgets. Opposition lawmakers could potentially delay budgets for specific systems requested by the MND, using them as "political leverage."
Fang further pointed out that the act's scope is broader than the Cabinet proposal, which focused solely on funding the three types of unmanned systems requested by the MND. The final law combines urgent military procurement with industrial development, research and development, cybersecurity, certification, supply chain policy, and institutional coordination. This broader policy scope could dilute attention or resources from the military's most immediate requirements.
Yang also noted that the annual funding structure could hinder Taiwan's ability to compete for foreign-made unmanned systems amidst strong global demand. If other countries can commit larger sums more swiftly, Taiwan could be "left behind," he cautioned.