Taiwan’s NT$2.1 Billion Drone Expansion: Bridging the Gap in Maritime Gray-Zone Defense

2026-05-04 10:00
The MQ-9B drone under consideration by Taiwan's military carries a unit price of approximately USD 80 million per bare aircraft. (Source: GA-ASI website)
The MQ-9B drone under consideration by Taiwan's military carries a unit price of approximately USD 80 million per bare aircraft. (Source: GA-ASI website)

Taiwan's Coast Guard Administration (CGA) has allocated approximately NT$29.5 billion (roughly US$ 910 million) under a special national security resilience budget to strengthen its overall capabilities in response to Chinese gray-zone harassment threats. Within that allocation, NT$2.1 billion (approximately US$ 65 million) is earmarked for the procurement of four types of unmanned aerial vehicles (UAVs). The Legislative Yuan's Interior Committee convened on the April 29th, inviting Ocean Affairs Council (OAC) Chairperson Pi-Ling Kuan (管碧玲) to present an operational overview and respond to legislative questioning.

Are Drone Budgets Too Opaque?

Kuomintang (KMT) Legislator Hung-Wei Wang (王鴻薇) raised concerns over the opacity of the UAV procurement budget. Wang argued that the most important aspect of drone procurement is training, yet the budget documents make it difficult to distinguish unit acquisition costs from training expenses. Wang stressed that support for UAV procurement spans all party lines — whether purchased by the Ministry of National Defense or the CGA — with even opposition legislators backing the initiative, but emphasized that greater transparency is essential. As currently written, the budget lists only 20 first-generation units (aircraft) at NT$89.86 million and six second-generation sets at NT$215.82 million, representing a 1.4-fold increase.

Is the Bidding Process Transparent Enough?

CGA Director-General Chung-Lung Chang (張忠龍) responded that each UAV procurement is preceded by a public solicitation document detailing technical specifications. Before Chang could elaborate, Wang redirected the discussion to the budget itself, pressing for clarity on functional specifications, per-unit costs, and training expenditures. She also called for resource-sharing arrangements with the Ministry of National Defense, noting that UAV operators are required to obtain licenses and that such sharing would improve efficiency. Chang reiterated that specifications vary by function and that best-value tendering is being used. Because the bidding process remains open, final per-unit prices have not yet been determined, he said.

Where's the Budget Breakdown?

Speaking to reporters after the hearing, Chang clarified that CGA drone procurement is structured on a full life-cycle cost basis — encompassing maintenance, payloads, and related services from acquisition through operational service. He cited the MQ-9B as a reference point: a bare-airframe unit costs approximately US 80 million, but with payloads the total can reach US$ 130 million to US$ 250 million. The apparent high per-unit prices that concerned legislators, Chang said, reflect this comprehensive cost model rather than airframe cost alone.

Chang further explained that the four UAV types in the special budget each carry different specifications suited to distinct missions. Short-range drones, for instance, are intended for coastal watchtowers and security checkpoints and do not require extended endurance or high-altitude capability. All quoted figures include full life-cycle costs and training. He also noted a key operational difference from military drones: CGA assets are exclusively intelligence, surveillance, and reconnaissance (ISR) platforms, and some must be capable of slinging and deploying rescue equipment such as buoys and life rings.

Chang added that all four drone types are capable of vertical take-off and landing (VTOL). One variant is a ship-based model requiring enhanced resistance to salt corrosion and wind, as well as stabilization systems — making it substantially different from land-based models. The NT$2.1 billion budget covers 451 units in total: 412 short-range drones for security checkpoints and watchtowers, 18 medium-range units, 12 ship-based units to be distributed across regional branches, and 9 special operations units. The procurement window runs through 2027, with a one-year budget carry-over permitted under budget law.

Regarding a separate batch of drones scheduled for delivery in June, Chang explained these are second-generation units funded under the regular operating budget — not the special appropriation. The previous tender for these units was voided after vendors failed to meet requirements. Chang noted that single-rotor designs have proven difficult to operate with limited performance, and that the current preference is for hybrid-power VTOL systems that use electric power for take-off and landing and fuel-powered propellers for sustained flight, offering longer endurance, higher operating ceilings, and greater wind resistance.

The CGA confirmed that under the national security resilience special budget, the 2025–2027 UAV program totals approximately NT$2.1 billion and encompasses 412 short-range, 18 medium-range, 12 ship-based, and 9 special operations drones. The program is designed to expand maritime patrol coverage and establish an integrated shore-sea-air surveillance and reconnaissance architecture.​

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