This is a podcast note from a conversation hosted by The German Marshall Fund of the United States, in partnership with NOWNEWS / Taiwan Current News (TCN). The episode features Brandon Tseng, Co-Founder and President of Shield AI, discussing Taiwan's evolving drone ecosystem and its role in regional deterrence.

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Who is Brandon Tseng?

Brandon Tseng co-founded Shield AI, an American aerospace and defense technology company focused on building intelligent, autonomous systems. Before entering the tech world, he served seven years in the U.S. Navy as both a Navy SEAL and a Surface Warfare Officer. He deployed twice to Afghanistan, as well as to the Pacific Theater and the Arabian Gulf.

It was during those deployments that he witnessed firsthand the risks service members face in complex combat environments — experiences that ultimately led him to build Shield AI with a clear mission: protecting service members and civilians through autonomy and AI.

Why Taiwan, Why Now?

Drones are at the center of the global defense conversation, and nowhere is that more strategically consequential than Taiwan. President Lai Ching-te's administration has made drone production a national priority, committing roughly $3 billion USD to building out a domestic drone ecosystem, with more investment expected.

Taiwan understands two things clearly:

1. Resilient, non-red supply chains are non-negotiable for credible defense.
2. Scalable autonomous systems are essential to deterrence.

Shield AI recently signed a teaming agreement with Aerospace Industrial Development Corporation (AIDC), a Taiwanese aerospace company based in Taichung. This marks an important step in deepening cooperation on trusted drone production and autonomous capabilities between the U.S. and Taiwan.

Key Themes from the Conversation

Taiwan in Defense Technology Supply Chains

Taiwan's semiconductor dominance is well-known, but the island is now positioning itself as a critical node in defense technology supply chains — specifically in drone manufacturing. The goal is to reduce dependency on components sourced from adversarial nations and build a trusted, allied production base.

Lessons from Ukraine

The war in Ukraine has been a live laboratory for drone warfare. Several lessons are directly applicable to Taiwan's defense posture:

• Mass matters. The sheer volume of drones deployed in Ukraine has changed the calculus of modern warfare. Expensive, exquisite platforms alone are not enough.
• Autonomy is the multiplier. When GPS is jammed and communications are degraded, drones that can operate autonomously become far more survivable and effective.
• Speed of adaptation wins. The side that iterates faster on drone capabilities — hardware, software, tactics — gains the advantage.

Non-Red Supply Chains

"Non-red supply chains" refers to supply chains free from Chinese-origin components — a critical requirement for defense applications. Building these requires:

• Identifying alternative suppliers for sensors, chips, motors, and communications modules
• Establishing manufacturing capacity in allied nations
• Ensuring interoperability across coalition partners

Taiwan's existing strengths in semiconductor fabrication and precision manufacturing make it a natural partner in this effort.

Developing Taiwan's Drone Supply Chain

Taiwan's drone industry is still nascent compared to the U.S. or China, but the investment and intent are clear. The conversation explores what it takes to scale from prototype to production — including workforce development, regulatory frameworks, and international partnerships like the Shield AI-AIDC agreement.

Counter-Drone Capabilities

As drone technology proliferates, so does the need for counter-drone systems. Both China and Taiwan are investing in:

• Electronic warfare (jamming and spoofing)
• Kinetic intercept systems
• AI-powered detection and tracking

The arms race between drones and counter-drones is accelerating, and staying ahead requires continuous innovation.

Grey-Zone Threats

Taiwan faces persistent grey-zone operations — military activities below the threshold of armed conflict — including Chinese coast guard incursions, airspace violations, and maritime pressure. Drones offer a proportionate, scalable response to these threats without immediate escalation. They allow Taiwan's coast guard and navy to maintain persistent surveillance and rapid response capabilities.

Military Operational Readiness

The conversation assesses Taiwan's overall military readiness and the systemic changes needed to integrate autonomous systems effectively. This includes not just acquiring hardware, but transforming doctrine, training, and command structures to leverage AI and autonomy.

China's Drone Industry

China's drone industry is massive and vertically integrated. Companies like DJI dominate the commercial market, and Chinese military drones are increasingly sophisticated. Understanding this landscape is essential for Taiwan and its allies to calibrate their own development and counter-strategies.

Drones in a Blockade Scenario

One of the most consequential scenarios for Taiwan is a Chinese naval blockade. Drones could play critical roles in:

• Maritime surveillance — persistent monitoring of sea lanes
• Anti-ship operations — autonomous swarms targeting naval vessels
• Resupply and logistics — delivering critical supplies when conventional shipping is disrupted
• Communication relay — maintaining connectivity when infrastructure is degraded

My Takeaway

This episode crystallizes something I've been thinking about: the convergence of geopolitics, supply chain resilience, and autonomous technology is not theoretical — it's happening now, and Taiwan is at the center of it.

The Shield AI-AIDC partnership is a signal. It says: trusted allies are building together, not just buying from each other. And for Taiwan, the investment in drones isn't just about military capability — it's about strategic autonomy in a world where supply chains are geopolitical instruments.

What strikes me most is the Ukraine lesson: the future of warfare isn't about the best platform, it's about the fastest iteration cycle and the most resilient supply chain. Taiwan has the manufacturing DNA to compete here. The question is whether the ecosystem can scale fast enough.

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Source: The German Marshall Fund of the United States — YouTube