AIDC Secures Major Orders and Advances Drone and Energy Technologies Amid Defense Spending Push
Published: 19 Dec 2025
Author: Precedence Research
Aerospace Industrial Development Corp. reported strong order momentum this year, with company president Tsao Chin-ping stating that new contracts have exceeded NT$20 billion. The orders span military aircraft maintenance, civil aviation component manufacturing, and energy-saving solutions, highlighting the company’s increasingly diversified business portfolio.
Speaking at an investor conference on Thursday, AIDC disclosed that revenue for November reached NT$3.16 billion, representing a decline of 18.6 percent compared with the same period last year. Cumulative revenue for the first eleven months totaled NT$30.87 billion, down 12.15 percent year on year. Management attributed the softer performance mainly to delays in military aircraft deliveries. Despite this, the company expressed confidence that operating conditions will improve next year as new orders are executed and supply chain stability improves.
AIDC’s outlook is closely tied to expanding government defense spending. Authorities have allocated NT$647 billion for next year’s defense budget, equivalent to 3.32 percent of gross domestic product, aimed at funding military aircraft, drone systems, and missile acquisitions. In addition, the president has proposed a long-term supplemental defense budget totaling NT$1.25 trillion from next year through 2033 to strengthen air defense and strike capabilities. Both funding plans are currently awaiting legislative approval.
Positioning itself to benefit from these procurement opportunities, AIDC plans to intensify research and development in unmanned systems and counter-drone technologies. The company has already completed an anti-drone system featuring radar-based detection and electronic jamming, and is now developing interception capabilities. Management also sees potential to market this system internationally.
In the unmanned aerial vehicle segment, AIDC recently completed flight tests of prototype drones equipped with a vision-based navigation software suite developed by Vantor. The technology enables precise navigation in environments where GPS signals are unavailable by matching real-time imagery with three-dimensional maps, significantly improving positioning accuracy and resilience against interference.
The company is also in discussions with U.S.-based UAV specialist Shield AI regarding localized production of selected drone models under license. Since September, AIDC has been authorized to conduct repair and maintenance services for certain Shield AI platforms in Taiwan, marking an expansion of its international partnerships.
Delivery delays affecting the T-BE5A Brave Eagle advanced trainer aircraft have weighed on recent financial results. AIDC cited unstable supply of key components such as engines, flight control systems, and fuel tanks as the primary causes. Penalties linked to these delays contributed to losses. To mitigate the issue, the company has been working closely with suppliers and has initiated joint research and development projects with the National Chung Shan Institute of Science and Technology.
Looking beyond defense, AIDC highlighted favorable long-term trends in the global aviation market. Worldwide air passenger traffic has increased 6.6 percent year on year, and aircraft manufacturers are expected to require approximately 43,000 new planes over the next two decades. AIDC aims to compete for a share of this demand by upgrading its forging and casting capabilities and increasing production capacity next year.
The company is also expanding into energy solutions through its “Power Island” system, which allows users to store electricity during off-peak hours and discharge it during peak demand. The system is positioned as a tool for businesses to manage power shortages and grid instability. Construction of a demonstration site in Hualien began in late November, with commercial operations expected to begin in the third quarter of next year.