The ministry said missile, rocket and air defense systems accounted for 29% of export deals, making them the largest category of sales. Observation and optronics systems also recorded strong growth.

European countries were the biggest buyers, accounting for 36% of exports, followed by Asia-Pacific nations with 32%. Countries in the Middle East and North Africa purchased 15%.

Defense Minister Israel Katz linked the export growth to the performance of Israel’s military and defense industries during ongoing conflicts involving Hamas, Hezbollah and Iran.

The announcement comes as Israel seeks to expand production of Arrow missile interceptors amid continued regional tensions and heightened demand for advanced air defense systems.

Indonesian Defense Minister Sjafrie Sjamsoeddin and Qatari Defense Minister Sheikh Saoud bin Abdurrahman bin Hassan bin Ali Al-Thani met in Jakarta and signed a memorandum of understanding as a precursor to a broader defense pact.

The two sides also agreed to expand cooperation in military training, education and the defense industry. Indonesia’s Defense Ministry said the partnership would involve army and navy personnel from both countries.

Officials described bilateral relations as strategic and voiced support for deeper defense collaboration in the future.

The blast occurred around 11:00 a.m. at the company’s research and development site, which works on advanced weapons technologies, rocket systems and aerospace projects.

Hanwha Aerospace CEO Son Jae-il said the accident may have occurred during the cleaning of equipment used in rocket propellant production, where explosive residue could have remained on tools.

The company pledged a comprehensive review of its safety procedures following the deadly incident. Political parties also announced they would scale back election campaign activities ahead of local elections as a mark of respect for the victims.

Official trade data showed Taiwan exported 181,159 drones between January and April, almost 20 times the volume recorded during the same period a year earlier and exceeding total exports for all of 2025. The majority of shipments were sent to the Czech Republic and Poland, destinations industry observers believe serve as transit points for equipment ultimately supporting Ukraine’s defense effort.

The sharp rise highlights how the Russia-Ukraine war has transformed the global drone market, with low-cost unmanned aerial vehicles becoming essential tools for reconnaissance, surveillance and precision strikes. The conflict has accelerated military spending worldwide and increased demand for alternative drone suppliers outside China.

Taiwan is positioning itself as an Asian production center for so-called “non-red” drones and components, a term used by industry participants to describe products free from Chinese materials and supply chains. The strategy aligns with broader efforts by Western governments and defense industries to reduce dependence on Chinese technology.

While Taiwanese manufacturers benefit from the island’s advanced electronics ecosystem, including strengths in semiconductors and artificial intelligence, they face significant cost disadvantages. Industry executives say non-Chinese drones can cost up to three times more than comparable products from Chinese manufacturers such as DJI, which dominates the global commercial drone market through large-scale production.

Analysts say overseas sales have become increasingly important for Taiwan’s emerging drone sector because domestic demand remains limited. Samara Duerr, a policy analyst at the Taiwan government-backed Research Institute for Democracy, Society and Emerging Technology, said international markets provide manufacturers with the scale and operational experience needed to expand production capacity.

The export boom also reflects opportunities created by Beijing’s tightening restrictions on drone exports in recent years. Those controls have encouraged foreign buyers to seek alternative suppliers, benefiting Taiwanese firms attempting to establish themselves in global supply chains.

Taiwan’s government has set ambitious targets for the sector, aiming to increase monthly production capacity to 100,000 drones by 2030, significantly above earlier goals. Officials view drone manufacturing as both an economic opportunity and a strategic necessity as Taiwan seeks to strengthen its defense capabilities in the face of military pressure from China.

China claims Taiwan as its territory and has intensified military activity around the island in recent years. Taipei sees the development of a domestic drone industry as part of broader efforts to enhance self-reliance and deterrence.

Industry leaders argue, however, that progress is being constrained by delays in government procurement programs. Plans to acquire more than 200,000 domestically produced drones under a proposed defense package worth nearly $40 billion have been stalled in Taiwan’s opposition-controlled parliament.

Max Lo, chairman of drone manufacturer AeroSoarX, said overseas contracts were essential for maintaining production lines while domestic orders remain uncertain. Taiwanese companies have increasingly pursued customers in Eastern Europe, particularly those involved in supporting Ukraine’s war effort.

Despite strong export growth, industry experts caution that Taiwan faces formidable competition. Ukraine has rapidly developed its own drone manufacturing ecosystem during the war and could emerge as a major exporter once hostilities end. Chinese producers also continue to dominate many segments of the market through lower prices and extensive manufacturing capacity.

Marcin Jerzewski of the European Values Center for Security Policy said one challenge for Taiwanese firms is proving their systems can perform under combat conditions, an area where Ukrainian manufacturers now possess extensive battlefield experience.

Analysts say Taiwan may ultimately find its strongest competitive advantage in specialized drone components rather than complete systems. Artur Savchii of Ukraine’s Snake Island Institute pointed to areas such as lithium-ion cells and advanced electronic components, where Taiwan’s technology sector could help reduce global dependence on Chinese suppliers.

Taiwanese companies are also expanding internationally through partnerships and joint ventures. Drone manufacturer Thunder Tiger has established a venture to produce drone motors in the U.S. state of Ohio and is exploring further expansion into Europe, betting that security concerns over Chinese technology will continue to drive demand for alternative suppliers.

“We will EXTEND the A-10 ‘Warthog’ platform to 2030,” Meink wrote on social media, adding the decision would help preserve combat capability while the defense industrial base ramps up aircraft production.

The A-10 Thunderbolt II, first introduced in 1976, had been scheduled for retirement by 2026. The aircraft has been actively deployed in recent operations involving Iran, with U.S. Central Command indicating its use against maritime targets in the Strait of Hormuz.

Long valued for its durability and powerful nose-mounted cannon designed for close air support, the A-10 has remained central to operations supporting ground troops. However, Air Force officials have repeatedly argued the platform is increasingly costly to maintain and less suited to modern warfare compared with newer systems.

Debate over the aircraft’s future has persisted for more than two decades, with proponents in Congress warning that retiring the fleet without a direct replacement could leave a critical gap in battlefield support. In 2021, Mark Kelly successfully pushed to block earlier retirement plans through defense legislation, citing the need to sustain the capability.

The largest share of the A-10 fleet is based at Davis-Monthan Air Force Base, where the aircraft contributes significantly to the local economy and employment.

While extending the platform ensures continued availability in current operations, Air Force officials have cautioned that maintaining the aging fleet places additional strain on maintenance resources needed for next-generation aircraft development.

The latest move underscores a continued balancing act between modernization priorities and immediate operational requirements.

The talks, described by the newspaper as preliminary and wide-ranging, involved companies such as General Motors, Ford Motor, GE Aerospace and Oshkosh, and began prior to the ongoing U.S. war with Iran, according to people familiar with the matter.

Defense officials raised the possibility that non-traditional manufacturers could support or supplement established defense contractors, including by rapidly transitioning portions of their production lines to military equipment and supplies, the report said.Reuters could not independently verify the discussions.

The companies named in the report did not immediately respond to requests for comment outside regular business hours.In a statement to Reuters, a Pentagon official said the Department of Defense is “committed to rapidly expanding the defense industrial base by leveraging all available commercial solutions and technologies to ensure our warfighters maintain a decisive advantage.

”The outreach comes as Washington faces growing pressure on its military inventories following sustained support for Ukraine after Russia’s 2022 invasion and ongoing Israeli military operations in Gaza, alongside U.S. strikes in Iran.

These developments have led to the drawdown of billions of dollars’ worth of weapons stockpiles, including artillery systems, ammunition and anti-tank missiles.President Donald Trump earlier this month requested a $500 billion increase in the U.S. military budget, bringing the proposed total to $1.5 trillion, as part of a broader effort to strengthen defense capabilities during the conflict with Iran.

The Pentagon has also engaged directly with the defense industry, with Trump meeting executives from seven major defense contractors in March as officials explore options to accelerate production and rebuild inventories.

Speaking to German broadcaster ZDF, Zelensky said US negotiators, including Steve Witkoff and Jared Kushner, were heavily engaged in Middle East diplomacy, leaving limited bandwidth for advancing peace efforts in Ukraine.

He described both figures as “pragmatic” but indicated their current focus had shifted toward managing tensions involving Iran.Zelensky said that a lack of sustained US pressure on Moscow risks emboldening the Kremlin.

“If the United States does not put pressure on Putin and only engages in a gentle dialogue with the Russians, then they will no longer be afraid,” he said.Negotiations aimed at ending the war between Russia and Ukraine have stalled in recent weeks, with no direct talks reported since February meetings in Geneva.

The diplomatic slowdown coincides with the escalation of conflict in the Middle East in late March, which has drawn significant US strategic and military attention.Zelensky also highlighted disruptions in US arms deliveries to Ukraine, calling the situation “a big problem,” particularly in the supply of air defense systems.

He pointed to shortages in PAC-3 and PAC-2 interceptor missiles, which are critical for countering aerial threats.According to Zelensky, these systems are largely procured through the PURL program, a mechanism established last year that allows European countries to finance US military equipment for Ukraine.

He said deliveries under the program had slowed, creating operational challenges for Ukrainian forces.“At the very beginning of the war in the Middle East we understood that we can have challenges,” Zelensky said, adding that the delays have placed Ukraine in a “very difficult position.”

Later in Norway, Zelensky met Prime Minister Jonas Gahr Store, where the two countries signed a joint declaration aimed at enhancing defense and security cooperation. The agreement includes plans to expand collaboration between defense industries and initiate production of Ukrainian drones in Norway.

Earlier in the day, Zelensky led a delegation to Berlin for talks with German Chancellor Friedrich Merz and senior officials.

The discussions focused on strengthening bilateral defense ties and advancing a broader strategic partnership amid the protracted conflict with Russia, now in its fifth year.

The move, announced by Defense Ministry Director General Amir Baram, will redirect procurement spending toward domestic suppliers and allied countries, according to an Israeli defense spokeswoman.

Policy rift deepensIsrael said the decision was in response to several French actions, including recognition of a Palestinian state, exclusion of Israeli firms from defense exhibitions, and a ban on Israeli aircraft carrying munitions for operations against Iran from transiting French airspace.

“The French ban was imposed despite prior coordination,” the spokeswoman said, adding that Israel viewed the measures as harmful to bilateral defense cooperation.

France’s presidency said its position was consistent with its policy since the start of the conflict, after U.S. President Donald Trump criticized Paris for not allowing Israel-bound military flights to cross its airspace.

According to a French parliamentary report, Israel’s procurement from French defense firms totaled about $260 million between 2015 and 2024, primarily involving components rather than complete weapons systems.

France does not directly export arms to Israel but supplies parts used in broader defense production chains.

The decision signals a further deterioration in defense ties between the two countries as the regional conflict intensifies following a military campaign launched by the United States and Israel against Iran on Feb. 28.

Israel’s defense ministry said it viewed the developments “with great severity,” warning of potential long-term impacts on strategic cooperation.

The development follows detailed discussions in parliament, where lawmakers have emphasized the need to modernize export rules without undermining Switzerland’s role as a responsible and stable actor in international security.

The lower house recently approved the proposed legal adjustments, opening the way for more flexibility in how export decisions are made.

The upper house is expected to vote on the measure shortly, and political observers believe it is likely to move forward given the broad recognition of the pressures facing the domestic industry.

Under current rules, Switzerland blocks weapons exports to countries engaged in internal or external conflicts or accused of serious human rights violations.

These restrictions have long shaped the nation’s cautious approach, ensuring that Swiss-made equipment is not used to escalate regional tensions or contribute to humanitarian risks.

Even under the revised framework, direct exports to active conflict zones, including Ukraine, will remain prohibited.

Officials have repeatedly underscored that this safeguard will not change, reaffirming Switzerland’s commitment to preventing the misuse of its manufactured systems.

The proposed adjustments shift greater discretion to the Federal Council, allowing it to evaluate specific cases where easing restrictions may reduce the risk of indirect or unintended supply to conflict-linked regions.

This approach is designed to provide flexibility during exceptional circumstances while keeping ethical and diplomatic considerations at the center of decision-making.

The amendment originally proposed earlier this year includes mechanisms that allow temporary exceptions when strategic or economic conditions demand it.

Swiss leaders have described this as a pragmatic middle path that strengthens oversight while providing industry partners with clearer expectations.

Supporters of the reform argue that Swiss manufacturers have been placed at a competitive disadvantage due to the country’s highly restrictive rules.

They note that several European partners allow more tailored export decisions, enabling their industries to maintain long-term contracts and international collaborations.

Swiss companies warn that without regulatory adjustments, production chains, research capabilities, and high-skilled jobs could come under increasing pressure.

The new law aims to address these concerns without diluting Switzerland’s moral and political obligations.

Balancing neutrality with industry stability has been a recurring challenge for the country.

By refining the export framework instead of abandoning restrictions altogether, policymakers say they are protecting both ethical standards and economic vitality.

The process reflects Switzerland’s broader strategy of adapting to evolving geopolitical realities while maintaining credibility in global diplomacy.

The proposal has also sparked discussions among civil society groups, some of which may push for a referendum if the reform is officially approved.

Public debate remains focused on ensuring that any change continues to uphold Switzerland’s humanitarian values and international commitments.

If adopted, the revised law would take effect in a phased manner, allowing regulators time to implement oversight procedures, strengthen transparency measures, and update compliance checks for manufacturers.

The government has said it plans to keep monitoring outcomes closely to ensure the system remains aligned with Switzerland’s neutral identity.

As Switzerland moves forward, the emphasis on responsibility, controlled flexibility, and stable economic policy has positioned the reform as a step intended to support national interests without compromising long-held principles.

Despite potential disruptions, industry experts and officials in Seoul remain confident that this challenge will further strengthen South Korea’s leadership and resilience in global shipbuilding partnerships.

The sanctions, announced by Beijing earlier this week, coincide with ongoing trade discussions between the U.S. and China. Yet rather than dampening Seoul’s ambitions, the development has reinforced South Korea’s determination to deepen technological collaboration and secure new global markets for its advanced shipbuilding capabilities.

Officials in Seoul emphasized that the country’s $150 billion investment plan to support U.S. shipbuilding remains a cornerstone of cooperation between the two allies.

The initiative, which aligns with U.S. President Donald Trump’s “Make America Shipbuilding Great Again” campaign, underscores South Korea’s vital role in revitalizing the global maritime industry through innovation, sustainability, and joint ventures.

Seok Jong-gun, Minister of the Defense Procurement Program Administration, acknowledged potential logistical challenges but expressed optimism about the broader picture.

“This is an opportunity to strengthen our technological independence and enhance production networks between South Korea and its international partners,” he said. “The goal is not only to maintain operations but to modernize and diversify the global supply chain.”

Hanwha Ocean, one of the world’s leading shipbuilders, has long been recognized for its commitment to next-generation shipbuilding technologies, from eco-friendly vessel designs to smart automation systems.

Its shipyard in Shandong, China, manufactures key modules that are later assembled in South Korea, demonstrating the firm’s integrated global approach. Despite the temporary setback, Hanwha’s management reaffirmed its dedication to maintaining seamless operations and global partnerships.

A spokesperson for Hanwha USA stated: “We are carefully reviewing the details of the sanctions, but our commitment to providing world-class maritime services remains unchanged.

Through ongoing investment in the U.S. maritime industry and our operations at Hanwha Philly Shipyard, we continue to advance technological excellence and support our international clients.”

Industry analysts view this moment as a potential catalyst for innovation. By encouraging South Korea to strengthen alternative supply routes and expand domestic production, the situation could accelerate technological growth and economic diversification.

Several experts believe it will also prompt greater collaboration between South Korea, the U.S., and European partners in building next-generation naval and commercial vessels.

Philly Shipyard, acquired by Hanwha in 2024, stands at the forefront of this transformation. It symbolizes the synergy between South Korean technology and American industrial heritage — a partnership designed to create sustainable jobs, develop green technologies, and rebuild U.S. shipbuilding competitiveness.

Even as the sanctions pose short-term challenges, they also highlight how deeply interconnected the two nations’ industrial futures have become.

Global observers note that China’s decision may ultimately elevate South Korea’s strategic standing. By maintaining a calm and proactive approach, Seoul has demonstrated diplomatic maturity and economic foresight.

Moreover, the situation underscores the strength of the South Korea-U.S. alliance, which continues to serve as a model for resilient cooperation in a shifting global economy.

The U.S. State Department’s statement calling China’s move “irresponsible” further reinforced international confidence in South Korea’s partnership-driven approach. It emphasized that coercive actions cannot deter progress in industries essential to global innovation and sustainability.

Ultimately, South Korea’s shipbuilding vision — rooted in excellence, innovation, and international collaboration — remains on course. As global maritime needs evolve, the nation is poised to lead the way in smart, sustainable shipbuilding, transforming challenges into opportunities for global growth.

Through resilience, foresight, and strong partnerships, South Korea continues to shape the future of the maritime world — proving once again that innovation and unity can turn obstacles into stepping stones toward a stronger, greener global economy.