Article 1

This Act is enacted to strengthen Taiwan’s national defense self-reliance, to channel the private

sector’s outstanding information and communications technology (ICT) and precision machinery

capabilities into the industries of national defense and Unmanned Systems, to promote the two-way

transfer of dual-use technologies between the military and civilian sectors, and to establish and

comply with standards fora Trusted Supply Chain, thereby achieving the dual-objectives of national

defense self-reliance and industrial upgrading.

Article 2

The competent authority of this Act (the “Competent Authority”) shall be the Ministry of Economic

Affairs (MOEA), except that the Ministry of National Defense (MND) shall be the Competent

Authority for matters involving national defense and military procurement.

Matters under this Act involving national defense procurement, subsidies for research and

development, imports of critical technologies, cybersecurity reviews, and designation of testing sites

shall be handled by the Competent Authority in conjunction with the relevant authorities.

Article 3

The terms used in this Act are defined as follows:

1. “Unmanned Systems” refer to equipment that operates without personnel onboard and may be

operated remotely, autonomously, or by other means in the air, on the surface of water, underwater,

on land, or in other environments. Its applications include inspection, transportation, surveillance

and reconnaissance, target acquisition, attack, logistics, communications relay, electronic warfare,

decoy, mine clearing, mine laying, or other missions.

2. “Dual Use Unmanned Systems” refer to Unmanned Systems based on commercial-specification

components that have undergone adaptive modifications to meet the performance requirements of

military missions and operational environments.

3. “Military-Civilian Shared Testing Site” refers to a testing site jointly established by the

Competent Authority in conjunction with local governments and industry for use by both the

military and private-sector entities to conduct flight control, navigation control, and operational

simulation testing of Unmanned Systems.

4. “Domestic Content Ratio” refers to the proportion of the output value of Unmanned Systems that

originates from domestic enterprises in the course of design, manufacture, assembly, and supply of

critical components.

5. “Trusted Supply Chain” refers to a supply chain in which the sourcing, supply and cybersecurity

management of Unmanned Systems and their critical components and raw materials comply with

the security requirements prescribed by the Competent Authority and with the tiered certification

system for Trusted Supply Chain announced by the Competent Authority.

6. “Unmanned Systems Enterprise” refers to an enterprise recognized by the Competent Authority

as substantively engaged in the business of Unmanned Systems, and/or their critical components,

system integration, software, firmware, data links, cybersecurity, testing and verification,

maintenance services, or other critical business activities announced by the Competent Authority,

and that meets specified requirements concerning operating revenue, research and development

expenditures, technological capabilities, domestic content, or Trusted Supply Chain; the term does

not include enterprises whose primary business consists solely of distribution/agency, imports,

assembly, resale, or contracting for government projects.

The requirements regarding operating revenue, research and development expenditures,

technological capabilities, domestic content, and Trusted Supply Chain applicable to Unmanned

Systems Enterprises under Subparagraph 6 of the preceding paragraph shall be prescribed by the

Competent Authority.

Article 4

To establish a long-term and stable mechanism for the development of the Unmanned Systems

industry and national defense buildup, to continuously promote the development of the Unmanned

Systems industry, strengthen defense self-reliance, build a secure and trusted supply chain system,

and enhance international competitiveness, the central government shall, through the annual budget

process, budget a total of NT$240 billion over six (6) consecutive years, in principle NT$40 billion

per year. Where such amount is insufficient, both the total amount and annual budgets may be

increased according to actual needs.

Article 5

The Competent Authority shall, in conjunction with the relevant agencies, formulate a development

framework (the “Unmanned Systems Industry Development Framework”) every four (4) years and

review and revise it every two (2) years.

The Framework referred to in the preceding paragraph shall specify the following:

1. industrial development policies and key performance indicators;

2. targets for self-reliance in critical technologies and for domestic content;

3. strategies for developing Unmanned Systems applications;

4. strategies for promoting Trusted Supply Chains;

5. regulatory adjustments and interagency division of responsibilities;

6. domestic market, international market, and export targets;

7. talent development and industry-academia cooperation strategies; and

8. funding requirements, funding source planning, and expected benefits.

The Unmanned Systems Industry Development Framework referred to in Paragraph 1 shall be

reviewed and approved by the Special Committee on National Unmanned Systems Industry

Development Strategy and approved by the Executive Yuan before being submitted to the

Legislative Yuan for recordation.

The Competent Authority shall submit to the Legislative Yuan an annual progress report on

Unmanned Systems covering the enhancement of national defense capabilities, industrial

development, technological innovation, and economic benefits.

Article 6

The planning of the Unmanned Systems-based defense architecture shall follow the principle of

distributed resilience and avoid concentrated deployment or production.

Unmanned Systems used by public-sector entities shall be capable of transitioning between

peacetime and wartime use. Procurement contracts shall comply with the Guidelines for the

Procurement of Remote-Controlled Drones and shall expressly prohibit enterprises from Mainland

China (including Hong Kong and Macao) from participating in procurement and prohibit

individuals from Mainland China (including Hong Kong and Macao) from participating in

procurement implementation teams, so as to prevent the infiltration of information and

communications products that may endanger national security and to achieve the goal of

establishing a fully Trusted Supply Chain in the Republic of China by 2027.

Article 7

The Competent Authority shall, in accordance with the Unmanned Systems testing-site programs

overseen and coordinated by the Ministry of Transportation and Communications (MOTC),

accelerate the integration, preparation, and management of testing sites. Within one (1) year after

this Act takes effect, the Competent Authority shall, in conjunction with local governments, plan at

least three (3) Military-Civilian Shared Testing Sites for the military and private-sector enterprises

to conduct flight control, navigation control, anti-jamming, and operational simulation testing of

Unmanned Systems, so as to optimize Taiwan’s domestic testing environment and enhance the

competitiveness of its Unmanned Systems industry.

Article 8

The Competent Authority shall annually evaluate the effectiveness of budgets relating to Unmanned

Systems. Such evaluation shall include:

1. the effect of Unmanned Systems procurement budgets on the output value of domestic industry;

2. the number and salary levels of technology-related employment opportunities created; and

3. the output value generated from civilian commercial applications and exports.

The evaluation report shall be submitted to the Legislative Yuan for recordation, and the Competent

Authority may, upon invitation, attend meetings of the Legislative Yuan to present the report.

Article 9

An Unmanned Systems Enterprise seeking incentives for domestic content shall obtain Trusted

Supply Chain certification established by the Competent Authority.

The Competent Authority shall issue a certificate valid for two (2) years to enterprises that have

obtained certification under the preceding paragraph, and shall publish a list of certified enterprises

on its official website as a reference for trust assessments by international partners.

Article 10

The MOEA, in conjunction with the MND, shall, by March 31 of each year, submit an

implementation report to the Executive Yuan and the Legislative Yuan on the development of

national defense technologies related to Unmanned Systems during the preceding year. The report

shall include:

1. progress toward mass-production targets for each category of Unmanned Systems;

2. progress toward Domestic Content Ratio targets;

3. issuance and revocation of Trusted Supply Chain certifications; and

4. procurement implementation, material deficiencies, and corrective measures.

Article 11

Where the amount of a single Unmanned Systems procurement project exceeds NT$100 million, the

Competent Authority shall submit a written report to the Legislative Yuan within thirty (30) days

after the contract is awarded.

Article 12

The Executive Yuan shall establish the Special Committee on National Unmanned Systems Industry

Development Strategy (the “Special Committee”) to coordinate, promote, and oversee national

Unmanned Systems industry policies. The Special Committee shall convene at least once every six

(6) months to review the Unmanned Systems Industry Development Framework and major policy

matters; extraordinary meetings may be convened in the event of major incidents. The meeting

minutes of the Special Committee shall be proactively disclosed on the Executive Yuan’s website

and shall include the meeting number, date and time, location, chairperson, attending members,

subject matter, agenda, and resolutions.

The Special Committee shall consist of fifteen (15) to nineteen (19) members. One member shall

serve as chairperson, a position to be concurrently held by the Vice Premier of the Executive Yuan.

The remaining members shall include the heads of the MOEA, the MND, the MOTC, the National

Communications Commission (NCC), the Public Construction Commission (PCC) of the Executive

Yuan, and the Ministry of Digital Affairs (MODA), as well as scholars and experts selected and

appointed by the central authorities from candidates recommended by the respective caucuses of the

Legislative Yuan.

The members selected and appointed under the preceding paragraph shall not be less than one-half

of the total members of the Special Committee. Their term of office shall be two (2) years, and they

may be reappointed upon expiration of their terms. Where a member is replaced during the term for

any reason, the replacement member shall serve until the expiration of the original member’s term.

Administrative and staff affairs of the Special Committee shall be handled by the MOEA. The

composition, duties, and operating procedures of the Special Committee shall be prescribed by the

Executive Yuan.

Article 13

The Competent Authority shall, in accordance with the Cybersecurity Testing Standards for

Remote-Controlled Drones, establish a tiered certification system for Trusted Supply Chain based

on the intended use and risk level of Unmanned Systems.

Under the tiered certification system referred to in the preceding paragraph, certification of military

Unmanned Systems, military products, and critical components shall be administered by the MND.

Certification of commercial, public-service, and other non-military Unmanned Systems shall be

administered by the MOEA. The certification system shall be established according to the intended

use and risk level of Unmanned Systems and shall, at a minimum, include certification requirements

for military products and critical components concerning cybersecurity, Trusted Supply Chains, and

national security.

The certification standards, scope of application, verification procedures, and positive lists under the

preceding two paragraphs shall be formulated by the central authorities in consultation with relevant

agencies and incorporated into the testing mechanism for product families of the same specifications

and architecture so as to integrate inspection procedures, avoid duplicative testing, and reduce

administrative burden and testing costs, and shall be made publicly available online.

Article 14

The MOEA shall, in conjunction with relevant agencies, plan the spectrum resources required for

Unmanned Systems, as well as the radio frequency resources required for data-link communications,

remote identification, and countermeasure testing. Where necessary, mechanisms for allocating

experimental and dedicated frequencies may be established.

The MND shall, in conjunction with relevant agencies and based on operational requirements, build

satellite communications, data links, dedicated networks, electromagnetic spectrum resources, and

other critical communications infrastructure required for military Unmanned Systems to enhance

their autonomy, security, anti-jamming capability, and sustained operational capability.

Article 15

The MOEA shall support the export of Taiwan-made Unmanned Systems and associated equipment

in the following ways:

1. international market forecasting and development;

2. collection and compilation of international application data for reference by government

agencies;

3. assistance to industry alliances in pursuing international market opportunities;

4. necessary tax, financing, and investment assistance in accordance with the Statute for Industrial

Innovation and other applicable laws and regulations;

5. mapping of common non-military procurement requirements among public-sector entities;

6. grants or subsidies;

7. capital or technology investment or licensing;

8. priority procurement; and

9. financing and preferential interest rates.

When mapping non-military procurement requirements under Subparagraph 5 of the preceding

paragraph, public-sector entities shall specify the products, systems and related support systems to

be procured, their specific names, quantities, budget amounts, life-cycle sustainment costs, and

planned years of implementation.

The regulations governing the timing, eligible recipients, conditions, criteria, and other relevant

matters concerning the incentives under Subparagraphs 6 through 9 of Paragraph 1 shall be

prescribed by the Competent Authority in consultation with relevant agencies.

The MOEA shall, in conjunction with the Ministry of Foreign Affairs (MOFA), the authority in

charge of international trade, the authority in charge of standards and inspection, and other relevant

agencies, assist the Unmanned Systems industry in keeping abreast of international standards,

export controls, end-use requirements, product safety, cybersecurity certification, and market-access

requirements.

Article 16

Where Unmanned Systems and their common items have standardized specifications, recurring

demand, and are suitable for centralized procurement, the competent procurement authority or an

agency designated thereby shall conduct procurement through common supply contracts or other

centralized procurement methods in accordance with the Government Procurement Act and

applicable provisions governing common supply contracts; the common specifications, safety

standards, cybersecurity requirements, Trusted Supply Chain inspection items, and maintenance

service terms thereof shall be prescribed by such authority or agency in conjunction with the MOEA

and relevant agencies.

Article 17

The MND shall give priority to procuring, integrating, and training personnel in the use of

domestically manufactured, low-cost, and high-performance Unmanned Systems.

In accordance with operational requirements and advances in technology, the MND shall procure

attack-type and surveillance-and-reconnaissance-type Unmanned Systems that have an advantage in

the sea-crossing and anchorage-landing phases, including the three categories of equipment

approved by the Executive Yuan for the Armed Forces: coastal surveillance and reconnaissance

unmanned aerial vehicles, coastal attack unmanned aerial vehicles, and small one-way attack

unmanned surface vessels.

The MND shall periodically review operational requirements and technological development trends,

and shall give priority to promoting the establishment of capabilities for autonomous operation,

swarm coordination, anti-jamming navigation, modular design, and rapid mass production.

The MND shall update the certification lists for Trusted Supply Chains and critical components on a

monthly basis.

Article 18

The MOEA shall establish an Unmanned Systems industry database and periodically collect,

compile, and publish the following information:

1. enterprises in the industry value chain, product types, and primary application areas;

2. capabilities and capacity in critical components, system integration, testing and verification, and

maintenance services;

3. self-reliance development of critical technologies, technology readiness levels, mass production

readiness levels, and verification capabilities;

4. cybersecurity verification, Trusted Supply Chain inspections, international certifications, and

alignment with international standards;

5. testing sites, testing corridors, flight-test cases, and relevant safety statistics;

6. types of Unmanned Systems used for public purposes and the status of related safety

management;

7. common specifications, common supply contracts, procurement oversight, and maintenance

services for Unmanned Systems;

8. talent supply and demand, training, and certification; and

9. export markets, international cooperation, and interoperability standards.

Where information under the preceding paragraph involves national classified information, trade

secrets, personal data, cybersecurity, or the security of law enforcement, such information shall be

kept confidential or published only after de-identification in accordance with applicable laws.

Article 19

Where any person or enterprise uses critical components, software, firmware, systems, or services

that are uncertified, of falsely represented origin, from high-risk sources, or substantively controlled

by high-risk sources, and thereby obtains incentives, subsidies, investment, financing, credit

guarantees, or eligibility to participate in government procurement under this Act, such eligibility

shall be revoked or rescinded, the amounts received shall be recovered, and an administrative fine of

not less than one (1) time and not more than three (3) times the amount received shall be imposed.

Any person or enterprise that provides false information during eligibility review, certification,

procurement, contract performance, acceptance inspection, subsidy, incentive, investment, financing,

or credit guarantee procedures shall be subject to an administrative fine of not less than NT$1

million and not more than NT$5 million.

Any person or enterprise that evades, obstructs, or refuses an audit, testing, random inspection, or

retest lawfully conducted by the Competent Authority, a procurement authority, or an entrusted

professional institution shall be subject to an administrative fine of not less than NT$500,000 and

not more than NT$3 million. Such fines may be imposed repeatedly on a per-violation basis.

Where an act under any of the preceding three paragraphs may give rise to criminal liability, the

matter shall be referred to the prosecutorial authorities for investigation.

Article 20

Within one (1) year after the promulgation and implementation of this Act, the Competent Authority

shall, in conjunction with relevant agencies, complete the following:

1. submission of the first Unmanned Systems Industry Development Framework;

2. planning for the safe integration of Unmanned Systems into airspace, maritime, and land

management systems; and

3. designation of testing sites, testing corridors, and demonstration zones.

Within six (6) months after the promulgation and implementation of this Act, the Competent

Authority shall, in conjunction with relevant agencies, complete the establishment of the tiered

certification system of Trusted Supply Chain.

Article 21

Unmanned Systems Enterprises may, in accordance with the Statute for Industrial Innovation, the

Act for Development of Small and Medium Enterprises, the Defense Industry Development Act, the

Income Tax Act, and other applicable laws, apply for tax incentives, investment tax credits, income

deductions, deferral of income tax, or other incentive or assistance with respect to research and

development, equipment investment, cybersecurity, artificial intelligence applications, critical

components, testing and verification, talent recruitment, technology contributions as equity,

stock-based compensation, financing, credit guarantees, or other matters relating to industrial

development.

With respect to the incentives and assistance under the preceding paragraph, the eligible applicants,

qualifying expenditures, review criteria, tax credit rates, tax credit periods, annual limits, application

procedures, and restrictions on the concurrent application of benefits shall be governed by the

respective laws and regulations authorized thereunder.

Article 22

Where an Unmanned Systems Enterprise has, within the preceding three (3) years, committed a

material violation of laws relating to national security, environmental protection, labor,

cybersecurity, or aviation safety, as determined by the respective central authority in charge of the

subject industry, it shall not be eligible to apply for the tax incentives under the preceding article,

and the tax incentives obtained for the year in which the violation occurred shall cease to apply and

shall be recovered.

Where an Unmanned Systems Enterprise is subject to cessation and recovery of tax incentives under

the preceding paragraph, the Ministry of Finance shall, after the disposition to cessation or recovery

becomes final, publish the name of the Unmanned Systems Enterprise on its website.

Article 23

The Enforcement Rules of this Act shall be prescribed by the Competent Authority within six (6)

months after the promulgation of this Act.

Article 24

This Act shall take effect six (6) months after its promulgation; provided, however, that Article 4

shall take effect upon promulgation.