From Procurement to Readiness: AeroVironment Helps Taiwan Scale Drone Capabilities

New MOU strengthens Taiwan’s defense ecosystem and builds long-term sustainment for UAS fleets

AeroVironment, Inc. (NASDAQ: AVAV), a U.S. leader in uncrewed systems, has signed a Memorandum of Understanding (MOU) with Taiwan’s National Chung-Shan Institute of Science and Technology (NCSIST) to expand collaboration on autonomous technologies and lifecycle management for defense applications. The agreement was announced this week during the Taipei Aerospace & Defense Technology Exhibition (TADTE) 2025.

The partnership will initially focus on AeroVironment’s JUMP® 20 and JUMP® 20-X vertical takeoff and landing (VTOL) platforms. AeroVironment will provide technical expertise, training, and sustainment processes to help Taiwan establish domestic infrastructure that enhances readiness and resilience. Future collaboration will include co-development of uncrewed systems and autonomy software.

Taiwan’s Expanding Drone Procurement

Taiwan is accelerating its investment in drones amid rising regional tensions. Last month, the government announced plans to procure up to 100,000 uncrewed aircraft systems (UAS) to strengthen homeland defense and protect critical infrastructure.

This follows the U.S. State Department’s approval of a $60.2 million sale of AeroVironment’s Switchblade® 300 loitering munition systems to Taiwan in July 2024. Together, these deals highlight Taiwan’s dual focus: acquiring advanced U.S. technology while building domestic sustainment and production capacity.

Building Sustainment and Readiness

The JUMP 20 system has gained global traction as a Group 3 platform of choice, with contracts across Europe including Denmark, Italy, and other NATO allies. Beyond procurement, AeroVironment’s partnership with NCSIST emphasizes lifecycle support.

This reflects lessons from Ukraine, where logistics, repair, and sustainment infrastructure for drones proved as critical as the platforms themselves. By establishing local capacity, Taiwan aims to reduce reliance on overseas supply chains and ensure operational readiness in a potential crisis.

The Offset Agreement Framework

The MOU is tied to industrial participation requirements, often referred to as defense offsets. For Taiwan, offsets are a strategic tool to increase self-reliance in defense production and sustainment.

Through this agreement, AeroVironment and NCSIST will create pathways for knowledge transfer, localized support, and potentially co-developed systems. The model mirrors partnerships seen in South Korea, Poland, and Australia, where U.S. primes have collaborated with national defense institutes to expand local industrial capacity.

Regional Security Context

The AeroVironment–NCSIST agreement fits into a wider Indo-Pacific deterrence strategy. The U.S. and its allies are expanding uncrewed capabilities to counterbalance China’s military buildup. Japan, Australia, and the Philippines are all investing heavily in drone programs and autonomy software.

Justin McFarlin, AeroVironment’s Vice President of International Business Development, said:

“By combining the combat-proven effectiveness of AV systems with NCSIST’s advanced research and development capabilities, we are ensuring Taiwan can produce and sustain mission-critical systems, strengthen deterrence, and respond quickly to evolving threats.”

Brian Anderson, AeroVironment’s Director of International Business Development for Asia Pacific, added:

“Taiwan has clearly signaled a demand to strengthen its domestic defense ecosystem and a desire to expand its self-reliance in defense production and lifecycle management.”

What Comes Next

The agreement highlights Taiwan’s determination to scale drone production and sustainment rapidly. By combining AeroVironment’s proven platforms with NCSIST’s R&D expertise, the island is building not just a fleet of drones but the infrastructure to keep them operational under pressure.

As Taiwan moves toward its ambitious 100,000-UAS procurement goal, partnerships like this will be essential for integrating advanced platforms while ensuring long-term resilience.

Read more:

• Treating Drones Like Ammunition: Taiwan and U.S. Accelerate UAV Procurement
• Auterion Partners with Taiwan’s NCSIST to Advance Swarming Drone Defense Technologies
• Oklahoma Governor Stitt’s Taiwan Visit Expands Drone and Aerospace Partnerships