Taiwan Builds War Machine, Anduril Founder Says Sell Weapons to the Free World

Taiwan is done playing small. The island is ramping up its defense industry, and Palmer Luckey, founder of defense tech giant Anduril, has a blunt message for Taipei: build weapons for the whole free world, not just yourself.

Speaking at a Sept. 19 forum in Taipei, Luckey argued that Taiwan must become a major defense exporter. He says domestic orders alone cannot sustain the industrial base needed for real deterrence against Beijing.

“Taiwan has to become a very powerful defense exporter,” Luckey said. He is right. And Taiwan is already moving.

What is Taiwan’s new defense law?

On Sept. 11, Taiwan promulgated the Act for Strengthening National Defense Autonomy and Development of the Unmanned Vehicle Industry. The law forces the central government to budget NT$240 billion, roughly $7.6 billion, over six years to build a new industrial framework for unmanned systems.

The law takes effect on March 11, 2027. It demands at least three civilian military testing sites by March 11, 2028. It also pushes for autonomous operation, swarming, anti-jamming navigation, modular design, and rapid mass-production capacity.

This is not paperwork. This is a war footing.

Taiwan’s drone exports are exploding

The numbers tell the story. According to a July statement from Taiwan’s Ministry of Economic Affairs, exports of complete drones jumped from $4.41 million in 2024 to $212 million in the first half of 2026 alone.

That is a massive leap. And Luckey says Taiwan has everything needed to go much further: semiconductors, machine tools, precision components, advanced composites, skilled workers, and sophisticated manufacturing.

“It just needs to apply them to the defense space,” he said.

Don’t sell airsoft guns. Make real guns.

Luckey’s message to Taiwanese manufacturers is simple and direct. He used the island’s airsoft industry as an example.

“Don’t just sell airsoft guns. Make real guns,” Luckey told the forum.

He urged Taiwanese firms to design weapons with foreign customers in mind from day one. Sell to countries that share Taiwan’s commitment to freedom. Build relationships where those nations depend on Taiwanese production, just like they depend on Taiwanese semiconductors.

“Designed in Taiwan, made in Taiwan” should mean something on a weapons system, Luckey said. People around the world should see that label and understand exactly what it represents.

Anduril is already all in on Taiwan

This is not theoretical. Anduril is deeply tied to Taiwan’s manufacturing base.

Luckey said the company uses Taiwanese chips and sensors and works with nearly 100 Taiwanese suppliers. On June 3, Anduril signed an agreement with Taiwan’s government-backed Metal Industries Research & Development Centre covering AI autonomous systems, drone manufacturing, localized production, and non-China supply chains.

Taiwan’s Industrial Development Administration said more than 10 Taiwanese companies have already received Anduril prototype or mass-production orders for drone airframes, payload equipment, and propulsion systems.

The U.S. military is already using this stuff. Taiwan’s Army received its first batch of Altius-600M attack drone systems on Aug. 4, 2025. Defense Minister Wellington Koo met Luckey the next day.

Why does this matter for America?

Section 1266 of the fiscal 2026 U.S. defense authorization law directs the Defense Department to seek a joint unmanned- and counter-unmanned-systems program with Taiwan. That includes co-development and co-production for U.S. and Taiwanese forces.

This is about making Beijing pay a price it cannot afford. Luckey argues that Taiwan’s preparations should make an invasion difficult at the outset and any occupation impossible to sustain.

Beijing must think about day 10, day 100, or day 1,000 of a conflict. A successful landing is not victory. The objective, Luckey said, is “to force Beijing into exactly that calculation” and make them understand that “the cost of winning makes it impossible to win.”

That is the American way. That is the free world way. And Taiwan is finally building for it.

FAQ: Taiwan’s defense buildup explained

What is the Act for Strengthening National Defense Autonomy?

It is a new Taiwanese law that budgets $7.6 billion over six years to develop the island’s unmanned vehicle industry and defense manufacturing base. It takes effect on March 11, 2027.

Why does Palmer Luckey want Taiwan to export weapons?

Luckey argues that domestic orders are too small to sustain a serious defense industry. Exporting weapons builds scale, creates dependencies, and strengthens deterrence against China.

Is Anduril already working with Taiwan?

Yes. Anduril uses Taiwanese chips and sensors, works with nearly 100 Taiwanese suppliers, and has given production orders to more than 10 Taiwanese companies. Taiwan’s military already operates Anduril’s Altius-600M drones.