Since the founding of Rhode Island-based defence start-up HavocAI in 2024 by former US Navy officer Paul Lwin, Taiwan has emerged as a focal point for American drone technology firms aiming to develop autonomous maritime and aerial defence systems. HavocAI specializes in software for managing fleets of unmanned surface vessels, aligning with Taiwan’s strategic need to boost its deterrence capabilities against potential Chinese military action.

Taiwan’s government has actively encouraged such collaborations, prompting a surge in partnerships between US start-ups and local companies. This momentum was accelerated in August 2026 when Taipei allocated over $7 billion for drone procurement and development over the next six years. The investment has sparked new deals and revitalised early-stage agreements, reinforcing Taiwan’s ambition to cultivate a robust, indigenous drone industry as a core element of its national defence strategy.

American firms collaborating with Taiwan include a broad spectrum of companies, from smaller tech innovators to major defence contractors such as Anduril Industries. Anduril, which supplies both the US and Taiwanese militaries, has already secured more than $1 billion worth of contracts with Taipei. Since September 2025, at least 13 joint agreements focusing on drone technology have been formalized. The US Department of Defense supports these efforts through initiatives like Drone Dominance, a $1.1 billion program to procure small, lethal drones from domestic manufacturers, while acknowledging that some supply chain elements must be developed abroad to avoid dependence on China.

Taiwan’s established manufacturing ecosystem, historically rooted in contract manufacturing and bolstered by its semiconductor industry, provides a strong foundation for these new defence partnerships. The island is recognized for its nimble production capabilities, which American companies are leveraging to localize research, development, and manufacturing of drone systems.

One notable example is the collaboration between HavocAI and Taiwan’s largest shipbuilder, CSBC. After extensive evaluation of about a dozen US and European firms, CSBC selected HavocAI last month to jointly produce uncrewed surface attack drones. Under a multi-year contract, these “one-way” drones, which detonate upon impact, represent a key asset in Taiwan’s naval defence modernization. CSBC, with decades of experience in warship construction including the ongoing build of Taiwan’s first indigenous submarine, is expanding into drone platforms to meet military demand.

Anduril has also pursued technology transfer and co-production agreements with Taiwan’s National Chung-Shan Institute of Science and Technology (NCSIST), the island’s military research and development arm. Since 2025, these agreements have included manufacturing Barracuda 500 cruise missiles and underwater drones locally. Similar partnerships with other Western defence companies, including Northrop Grumman, indicate a broader push to modernize Taiwan’s missile and air defence systems.

This expanding US-Taiwan drone collaboration also serves American strategic interests by establishing a “non-red” supply chain—free from mainland China’s influence—that could support US forces, particularly in the Pacific theater. Experts highlight that Taiwanese manufacturing can fill important gaps in the US defense industrial base at a critical distance from mainland operations.

Among emerging contenders in this sector is Str8 Industries, co-founded by tech entrepreneur Phil Ho and retired US Navy officer Bilal Awad. Str8 operates research and development facilities in northern Taiwan and works with local shipyards, promoting in-island production to enhance resilience in potential conflict scenarios, such as a Chinese blockade.

Demonstrations of these partnerships’ capabilities were recently showcased in a live exercise off Taiwan’s southeastern coast. A small fixed-wing drone, co-developed by California-based AEVEX and Taiwan’s Chungshan Institute of Science and Technology Research Centre (CIRC), executed a precision strike on a ground target. The drone featured a 3D-printed airframe designed by AEVEX, combined with flight controls, computing systems, and components sourced and assembled in Taiwan.

The US-Taiwan defence technology alliance thus continues to deepen, driven by shared security concerns and leveraging Taiwan’s manufacturing strengths. With further government funding and ongoing private sector cooperation, the island aims to significantly enhance its autonomous weapons capabilities to deter aggression and reinforce regional stability.