Taiwan is striving to develop a robust dual-use defence industry, focusing on technologies like drones. The initiative aims to establish Taiwan as a significant manufacturing hub, but faces considerable hurdles. Success hinges on continued and substantial government funding to support research and development. Crucially, access to international markets is vital for the industry’s growth and sustainability. The European Union is identified as a particularly promising region for strengthening economic and technological cooperation. Overcoming these challenges will determine whether Taiwan can realize its ambition of a thriving, innovative defense sector.