Taiwan to buy 292 VTOL drones from Shield AI

DEFENSE PROCUREMENT: Taiwan could become the largest operator of V-BAT drones outside the US once they are delivered, the Ministry of National Defense said

• By Lo Tien-pin and Jake Chung / Staff reporter, with staff writer

• • Add TT as Preferred Source

  • 

  • 

  • 

The navy and the coast guard are acquiring 292 units of MQ-35A V-BAT vertical takeoff and landing (VTOL) surveillance drones manufactured by US-based defense technology company Shield AI, making Taiwan one of the largest buyers of the drone.

The Coast Guard Administration budgeted NT$1.2 billion (US$37.1 million) to buy 12 drones, which have been delivered, Shield AI said in a report on Oct 13.

The navy is planning to spend NT$36 billion under a four-year program code-named Project Yuan Xiao (遠鴞) to acquire 280 V-BAT drones, the Ministry of National Defense’s fiscal 2027 report showed.

A V-Bat vertical takeoff and landing drone developed by Shield AI is exhibited during a demonstration in Den Helder, the Netherlands, on July 9 last year.

Photo: EPA

The combined procurement is expected to cost NT$37.2 billion.

The navy’s order alone would exceed the 250 V-BAT drones that Shield AI had sold to the US and other NATO countries as of 2024, the ministry’s report said.

The US military and coast guard combined are estimated to operate about 300 V-BAT drones, while the Netherlands, Armenia, Poland and other countries each operate fleets of several dozen drones, it said.

Taiwan could become the largest operator of V-BAT drones outside the US once deliveries are complete, it said.

The drones are intended to help maintain operational capability if Chinese attacks disrupt Taiwan’s command structure, the report said.

Of the navy’s planned procurement, 212 drones are earmarked for the Coastal Combat Command and Hsiung Feng anti-ship missile units. The package also includes 140 control systems and 82 ground transport vehicles, allowing missile units to use drones for reconnaissance and maintain precision-strike capabilities even when relocating or if their radars are destroyed, the ministry’s report said.

The navy cited the V-BAT’s performance during the war in Ukraine, saying that it had completed 130 successful reconnaissance missions despite strong Russian electronic interference.

At a briefing in Taipei on Oct 2, Shield AI president and cofounder Brandon Tseng (曾國光) said the share of V-BAT components supplied by Taiwanese companies was expected to rise to 25 percent from 16 percent.

Aerospace Industrial Development Corp will handle logistics, maintenance and training for Taiwan’s drones, he said.

The procurement is expected to bolster Taiwan’s defense capabilities in peacetime and during conflict, while giving Taiwanese companies a greater role in the supply chain for advanced US-made drones, he said.