Taiwan seeks "non-red" drone supply chain, but struggles to award contracts

Public buying is meant to build a drone supply chain free of mainland Chinese parts, but small tenders drew too few bidders or none at all.

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Stacked bar chart of Taiwan government drone tender notices by month, split into awarded and no award, with no-award notices rising in 2026.

More of Taiwan's government drone purchases put out for bid are ending with no award this year. Of 275 award notices posted on the Taiwan Government e-Procurement system from January through Oct. 20 for tenders with "drone" (無人機) in the buyer's or tender's name, 116, or about 42%, said no award was made, by our count. That's up from about 30% from January through October 2025.

That matters because Taiwan's government is trying to leverage public contracts to boost the local industry. In January the Executive Yuan (行政院), Taiwan's cabinet, said government purchases should drive demand, with the aim of an all "non-red" drone supply chain, its term for one free of parts from China, by 2027.

The failures reach national agencies too. Between Oct. 13 and 19, failed notices included 10 sets of drone equipment for the Ministry of Agriculture's (農業部) animal and plant quarantine agency (動植物防疫檢疫署), failing for the third time; drones to map accident sites for the Taiwan Transportation Safety Board (國家運輸安全調查委員會); and a drone-jamming gun for the navy, under the Ministry of National Defense (國防部).

What's behind the lack of bids? The five notices from that week we could read, all small purchases by schools and a county police force, gave the same reason: no supplier bid, or fewer than the legal minimum turned up. None said why suppliers stayed away.

Bidders also face rules on origin. Under a January guideline from the Public Construction Commission (行政院公共工程委員會), the cabinet agency that runs the procurement system, drones bought by agencies may not originate in mainland China, Hong Kong or Macau, and must carry type or inspection certificates and cybersecurity test reports. No notice links the rules to a failure.

Some failed buys do land later. One university's drone kit was awarded on July 14 after three failed rounds. Agencies can also order through a joint drone supply contract that bars mainland-funded bidders.

Sources: 政府電子採購網 Taiwan Government e-Procurement (award search, 2026), 政府電子採購網 Taiwan Government e-Procurement (award search, 2025), 政府電子採購網 Taiwan Government e-Procurement (no-award notice, 大甲高工 115021), 政府電子採購網 Taiwan Government e-Procurement (no-award notice, 臺東縣警察局), 政府電子採購網 Taiwan Government e-Procurement (no-award notice, 中華科技大學 TP115011), 政府電子採購網 Taiwan Government e-Procurement (no-award notice, 中華科技大學 TP115012), 政府電子採購網 Taiwan Government e-Procurement (no-award notice, 埔里國中 A115212), 行政院 Executive Yuan, 行政院公共工程委員會 Public Construction Commission (guideline, copy hosted by Yuan Ze University)

Editor: Ian Lamont