Japanese drone makers, long proud of their “Made in Japan” branding, remain heavily reliant on low-cost components from China, including key parts like electronic speed controllers, propellers, and engine generators. However, that dependence is coming under fresh scrutiny as China’s recent export restrictions, imposed over national security concerns, have sparked concerns about supply chain reliability.

As the second quarter of 2025 gradually comes to a close, Taiwan’s IC design sector is facing the traditional off-season with a generally optimistic outlook. Industry players believe that actual shipment performance has not been as “soft” as expected. Although operational momentum is not particularly strong, overall stability has exceeded expectations.

Industrial PC (IPC) makers, having weathered the pandemic and supply chain disruptions, had expected a steady recovery. But renewed geopolitical headwinds — tariffs, currency swings, and regional conflicts — have cast fresh uncertainty over market prospects. Although vendor-client relationships remain largely stable, rising geopolitical and economic uncertainty is raising doubts over sustained investment momentum in downstream markets.