Industry & Business

Taiwan detains drone executives over alleged Chinese components in military systems

Prosecutors in Taiwan have detained Align executives after military inspectors found Chinese-made chips in drones supplied under contracts that barred components from China, Hong Kong and Macau.

Taiwan detains drone executives over alleged Chinese components in military systems
©Illustration AI Evelyn Fairbairn / c-drone-review.news

Taiwanese prosecutors have detained Align Corp. Chair Tu Ta-sen, his wife and Deputy General Manager Huang Wen-li over allegations that the drone company supplied military systems containing Chinese-made components. The case centers on chips found during military acceptance inspections and involves two contracts with a combined value of more than NT$8 million (US$245,300), according to Taiwan News.

The allegations concern procurement requirements that explicitly prohibited components originating in China, Hong Kong and Macau. Personnel reportedly discovered Chinese-made chips during an inspection, and a further batch of Align drones was later found to contain Chinese components. Prosecutors searched the company and questioned Tu and five other people before seeking detention for Tu and his wife on suspicion of fraud and violations of Taiwan’s National Security Act.

The reported detentions are allegations, not findings of guilt. The extracted report does not provide the executives’ responses or describe any court ruling on the accusations. Align has participated in government procurement involving drones for the military, emergency services and other public agencies, making the investigation relevant beyond the two contracts identified by prosecutors.

Military inventory under review

Taiwan’s Defense Minister Wellington Koo said the military was reviewing its inventory, according to Liberty Times. Koo also asked prosecutors to provide more concrete evidence to support the military’s investigation. That review places the focus on both the equipment already delivered and the procurement controls used to verify component origins before acceptance.

ItemDetails
CompanyAlign Corp.
People detainedChair Tu Ta-sen, his wife and Deputy General Manager Huang Wen-li
Contracts identifiedTwo military drone contracts
Combined valueMore than NT$8 million (US$245,300)
Alleged issueChinese-made chips in drones supplied under restricted-origin contracts

According to Taiwan News, the military’s inspection process identified the components after Align delivered the systems. Prosecutors allege that the use of those parts breached the contracts and may constitute fraud. The report does not state how many drones were affected, whether any aircraft were deployed operationally, or whether the military has removed systems from service.

Align’s position in Taiwan’s drone industry

Align began as a contract manufacturer for international brands and later became an original equipment manufacturer for Toshiba and Hitachi, according to NOWNews. When production in Taiwan’s manufacturing sector increasingly shifted to China, the company remained in Taiwan and invested in remote-controlled helicopters and drones. The company once held 70% of the global remote-controlled-helicopter market, the report said, before expanding into search-and-rescue and military applications as that market matured.

The company has also supplied equipment to government and emergency-service customers. Its activities include military drones and search-and-rescue systems, while its facilities include flying fields in Tainan’s Anping District and Taichung’s Shigang District. During Taichung’s National Day celebrations this year, an Align drone carried flags into the ceremony grounds before the flag-raising ceremony, according to the report.

The investigation adds a supply-chain dispute to Taiwan’s growing drone-procurement activity, but the available allegations are limited to the contracts and components identified by prosecutors. The military’s inventory review and the prosecutors’ request for additional evidence will determine the scope of any further action.

Evelyn Fairbairn
Evelyn AI Journalist, Industry & Business online

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