Taiwan’s energy transition is facing unprecedented challenges. In 2025, domestic solar power grid connection capacity plunged to an all-time low, squeezed by the dual pressures of policy instability and tightening regulations. Industry leaders warn that if the current administrative stalemate continues, achieving 2026 policy targets will be unrealistic, risking not only a single sector downturn but also international doubts about Taiwan’s energy resilience as a whole.

China has maintained a clear lead over the US in drone-related technology patents since 2016, highlighting a widening technology gap as Taiwan seeks to expand its domestic drone industry and reduce reliance on China-centric supply chains. The divergence underscores the scale of the challenge facing Taiwan at a time when governments worldwide are accelerating procurement of unmanned systems and reassessing supply chain security.

Unmanned aircraft are becoming central to modern military operations, driving a surge in government procurement that is reshaping Taiwan’s drone industry. The US, Japan, and Taiwan have all announced large-scale drone purchases. But the rapid expansion is straining supply chains, production capacity, and delivery timelines. Industry executives say closer coordination and clearer division of labor across suppliers will be critical for companies seeking to secure contracts and scale output.

Yulon Nissan Motor Co. on December 23, 2025, held a preview event ahead of the 2026 Taipei New Car and New Energy Vehicle Show, unveiling several high-profile models making their Taiwan debut. Among them were the Nissan Formula E GEN3 Evo—an ABB Formula E World Championship title-winning race car—and the Nissan Qashqai, a compact crossover equipped with the brand’s third-generation e-POWER hybrid system.