Taiwan Unmanned Vehicle Industry Act

The Act, formally the Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry, governs how Taiwan funds, builds and buys drones and other unmanned systems for air, land and SEA. President Lai Ching-te promulgated it on 11 September 2026 after Premier Cho Jung-tai countersigned it. Article 4, the budget clause, took effect at once; under Article 24 the rest commences six months later, on 11 March 2027.

The Legislative Yuan passed the Act at third reading on 27 August 2026. Article 4 requires the central government to budget NT$240bn over six consecutive years, NT$40bn a year in principle, and lets both figures rise if needs exceed them. The Ministry of Economic Affairs is the competent authority; the defence ministry handles military procurement, and a special committee under the Executive Yuan coordinates policy. Article 6 bars firms from mainland China, Hong Kong and Macau from public-sector contracts and sets a fully trusted supply chain target for 2027.

The Act replaced the Cabinet's NT$210bn special budget, which the legislature rejected. Its money sits inside each year's defence budget rather than a ring-fenced fund, so domestic makers plan production against sums lawmakers can change every year.