Taiwan’s top military research institute has signed partnership deals with six leading global defense firms, a landmark move aimed at building a more self-reliant defense supply chain.

At the 2023 Taipei Aerospace & Defense Technology Exhibition (TADTE), drones were little more than side displays. This year, they dominated the show. Industry analysts say Taiwan’s drone sector only began gaining real traction after Russia invaded Ukraine in 2022. Since then, the share of locally made critical components has surged from about 60-70% to at least 95% in less than three years.

TSMC’s 2nm (N2) process is nearing mass production, with industry sources indicating it has secured up to 15 customers. About 10 are focused on high-performance computing (HPC), showing how artificial intelligence (AI) and data centers are emerging as the key drivers of advanced process adoption.