European Defense Unicorns Expand into the Taiwan Market

Europe's top defense technology companies are establishing partnerships and attending defense exhibitions in Taiwan, signaling a shift in the European approach to the region's tense geopolitics.

German drone manufacturer Quantum Systems, reportedly raising funds at a €3 billion valuation, signed a partnership with Taiwanese supplier Sysgration in September to localize drone production. The company exhibited at Taiwan's largest defense show alongside fellow German firm Helsing.

Lisbon-based surveillance drone maker Tekever partnered with Taiwanese aerospace company Apex Aviation to provide unmanned systems for Taiwan's defense needs. Founder Riccardo Mendes reports tremendous demand across East Asia, with Taiwan as a main focus due to China tensions.

Helsing founder Torsten Reil described the eastern threat as imminent, emphasizing urgency. The company acquired Australian underwater vehicle specialist Blue Ocean in October, a technology more applicable to island defense than its Ukraine operations.

These moves follow American company Anduril, which opened a Taipei office and signed a drone supply deal in August. European nations have historically avoided arming Taiwan to prevent angering China, which claims the territory.

Hadrien Canter of Alta Ares says Taiwan actively diversifies its defense supply chain beyond American dependency. The Ukraine war has tested European defense technology and changed attitudes toward Taiwan partnerships.

Some analysts warn that companies may be positioning for potential 2027 conflict scenarios, when some predict a possible Chinese invasion. Professor Elke Schwarz cautions that European weapons sales to Taiwan could escalate tensions. Europe hasn't sold weapons systems to Taiwan in 30 years, and previous sales caused serious diplomatic incidents with China.