Palmer Luckey, once celebrated as the prodigy behind Oculus and virtual reality's mainstream breakthrough, found himself abruptly cast out of Silicon Valley's inner circle following his political donations during the 2016 US presidential election. After leaving Facebook (now Meta), Luckey established Anduril Industries, a defense technology company that quickly emerged as a major force in advancing military innovation.

In a recent speech, Palmer Luckey, the innovative force behind defense technology firm Anduril Industries, invoked a hypothetical Taiwan Strait conflict to underscore the pivotal role of artificial intelligence (AI) in modern warfare.

Taiwanese ceiling fan manufacturer Champ-ray Industrial reported strong competitive positioning despite recent tariff disruptions affecting the industry, citing higher tariff pressures on its regional rivals. The company has maintained normal order fulfillment without cancellations or shipping delays.

The US is charting a new course for defense spending, with President Donald Trump's administration proposing a 13% increase that would push the Pentagon's 2026 budget to an unprecedented US$1.01 trillion. While funding for medical research and education faces deep cuts, the White House is prioritizing investments to strengthen national security, deter Chinese aggression in the Indo-Pacific, and revitalize America's defense industrial base. The move aligns with a global trend of escalating military budgets, as nations respond to heightened geopolitical tensions.

As China imposed export controls on seven critical medium and heavy rare earth elements in early April, a buying frenzy has gripped the international rare earth market. Within a month, prices for terbium and dysprosium have more than doubled, marking the steepest monthly surge in nearly a decade. The fallout is global. Analysts say the price spike is adding new fuel to US-China trade tensions and raising alarms for manufacturers of electric vehicles, robotics, and military equipment. Industry experts warn that the long-term stability of these supply chains is now at risk, as companies scramble to secure the raw materials critical for next-generation technology.

Powertip Image (PTIC), a subsidiary of STN LCD panel manufacturer Powertip Technology, is actively developing niche products beyond notebook computer applications. Its product range includes medical endoscopes, robot vacuum cleaners, smart refrigerators, industrial computers, drones, and security surveillance systems. All these products have already seen actual shipments, mostly to top international brands.

Coretronic Intelligent Robotics Corporation (CIRC), a subsidiary of Taiwan's Coretronic Group, is carving a niche in the global drone market, capitalizing on its non-red supply chain status to secure a competitive edge over the Chinese giant DJI. Despite acknowledging technological gaps, CIRC's strategic positioning and robust contract wins signal a promising trajectory, particularly in defense and commercial applications.

According to Daiji World, Optiemus Unmanned Systems (OUS), a division of Optiemus Infracom, has joined forces with Taiwan-based Avix Technology to co-develop and manufacture high-performance drone cameras, gimbals, and components in India.

Thunder Tiger Technology is broadening its unmanned vehicle portfolio from aerial drones to maritime vessels with its new flagship unmanned surface vessel (USV), the SeaShark800. The company announced that the vessel will participate in Taiwan's military research institute NCSIST's "Kuachi Project" performance tests in June 2025.

Since US President Donald Trump took office, trade tensions between the US and China have escalated, although a recent easing of tariffs announced on April 23 suggests a more calibrated approach. Nevertheless, the overall competition between the two nations continues, with maritime issues becoming a significant area of focus.

As global trade grapples with the turbulence of tariff disputes, defense and military demands remain undeterred, emerging as pivotal bargaining chips in negotiations over reciprocal tariffs with the US. Unmanned vehicles have surged to the forefront of strategic priorities, with Taiwan's drone industry already coalescing into a nascent national team.

China's drone supply chain operators report that open-source AI technologies like DeepSeek are significantly enhancing drone performance when applied to power systems and aerospace applications. This integration highlights both technological advances and growing cybersecurity challenges.

China has positioned the low-altitude economy as a cornerstone of its future industrial strategy, with drones serving as the linchpin of this burgeoning sector. Leveraging its early entry into the drone industry, China has secured a dominant global market share, accounting for 70% of commercial drone sales worldwide. This leadership stems from a combination of state-backed technological advancements and cost-effective manufacturing, enabling Chinese firms to outpace international competitors.

China's low-altitude economy is developing at a rapid pace, with companies like Aerofugia and Lzlair advancing electric vertical takeoff and landing (eVTOL) technology toward commercial applications. Chinese firms are actively competing for certification, with expectations of widespread commercial deployment beginning in 2026.

The 3rd InnoEx show kicked off in Hong Kong on April 13, 2025, with the low-altitude economy taking center stage. Together with the concurrent 21st HKTDC Hong Kong Electronics Fair (Spring Edition), the exhibitions showcase more than 2,800 companies from 29 countries and regions.

Hong Kong is demonstrating its smart city innovations at InnoEX 2025, with a strong focus on robotic applications developed by various government departments.

Taiwan's Aerospace Industrial Development Corp. (AIDC) is approaching the final stages of its current domestic aircraft development initiatives, with its chairman, Hu Kai-Hung, noting that 2026 is anticipated to be a particularly challenging year. Despite this, AIDC's recent operational forecast indicates strong performance in its military sector. This includes a surge in aircraft maintenance contracts and substantial investments in drone countermeasure technologies, which are scheduled for launch in June.

China's "Xinchuan" initiative, a national endeavor to supplant foreign technology and imported products with homegrown capabilities, stands as a cornerstone of its industrial policy. However, the reality on the ground reveals a paradox. Vast stockpiles of semiconductor equipment, procured with fervor, languish unused. Absent sufficient orders, these machines remain dormant, underscoring a stark underutilization of China's ambitious investments in chip-making infrastructure.

China's EV dominance is already global, but the next front is autonomous driving. It's no longer just about the vehicle; it's about the AI-powered stack behind it: maps, sensors, monitoring, and infrastructure. For AI, smart cars aren't just another use case—they're the ultimate proving ground.

Hong Kong is set to host its premier technology showcases this spring, as the 3rd edition of the Hong Kong International Innovation & Technology Expo (InnoEX) and the 21st spring edition of the Hong Kong Electronics Fair will take place from April 13-16, 2025 at the Hong Kong Convention and Exhibition Centre. These twin fairs serve as the core events of the city's "Business of Innovation and Technology Week" (BIT Week), spotlighting cutting-edge innovations and the latest electronics trends.

Taiwan's Thunder Tiger Corp. is deepening partnerships with major European drone companies amid rising cross-strait tensions following China's surprise military exercises near Taiwan on April 1, 2025.

Taiwan's drone industry, acknowledging limited domestic opportunities, is increasingly focusing on international markets by promoting non-Chinese supply chains. Industry leaders expect significant developments by mid-May, according to the Taiwan Excellence Drone International Business Opportunities Alliance (Tediboa) chairman from Aerospace Industrial Development Corp. (AIDC), amid emerging shifts in regional market preferences.

Taiwan's National Chung-Shan Institute of Science and Technology (NCSIST) plans to release patents and technologies for three reconnaissance drone models to private manufacturers, shifting its focus to attack drone development amid regional tensions.

Taiwan's Aerospace Industrial Development Corp. (AIDC) is entering a pivotal transformation phase, extending its global footprint beyond its recent Malaysian partnership to establish operations in the United States. The company will integrate biotechnological medical products from Malaysia's Zongheng Group at a new US production facility.

Taiwan's drone industry is undergoing a critical transformation, with Geosat Aerospace & Technology at the forefront. Yung-Lan Yeh, a manager at Geosat, recently highlighted two pivotal challenges in drone development during an interview with DIGITIMES: structural supply chain issues and the fundamental importance of power systems. Yeh emphasized that drones must be developed from an aerospace perspective and warned that without mastering power systems, Taiwan risks falling behind, as even minor imbalances in components like propeller blades could lead to catastrophic failures.