Silicon Valley's Drone Makers Target Asia-Pacific Markets Amid Rising Regional Tensions

By Joe Brock

SINGAPORE, Feb 5 (Reuters) – The buzz at this year's Singapore Airshow wasn't just about the latest passenger jets or fighter planes. A new class of exhibitors took center stage: American drone and artificial intelligence companies, leveraging lessons from Ukraine and eyeing Asia's rapidly evolving defense landscape.

The conflict in Eastern Europe has served as a brutal proving ground, demonstrating the transformative—and lethal—impact of unmanned systems. This has triggered a flood of venture capital into U.S. defense tech startups like Anduril Industries and Shield AI, whose valuations have soared. Now, these firms are pivoting from U.S. Pentagon contracts to international sales, targeting allies across the Indo-Pacific who are bolstering their defenses.

"The character of major air shows is fundamentally changing," observed a veteran industry analyst at the event. "It's no longer just about the sheer power of manned platforms. The conversation has shifted to networked, intelligent, and attritable systems that can provide an asymmetric advantage."

From palm-sized kamikaze drones to sleek, jet-powered 'loyal wingmen' designed to fly alongside next-generation fighters, the technology on display underscored a strategic shift. Companies are arguing that their real-world combat data and AI sophistication offer a crucial edge as China accelerates its own military modernization.

Shield AI, for instance, announced a partnership with Singapore's ST Engineering to supply its Hivemind AI autonomy software. The company's co-founder, Brandon Tseng, told Reuters that regional militaries are seeking robust capabilities for intelligence and reconnaissance even in GPS-denied environments—a direct nod to potential electronic warfare challenges.

Anduril Industries, valued at $30 billion, has recently established offices in Taiwan, South Korea, and Japan, and has already secured sales of its Altius loitering munition to Taiwan. Meanwhile, Neros Technologies outlined plans to establish production facilities in several Asian nations to stockpile its expendable Archer attack drones. "The goal is to create a deterrent mass," said the company's Asia growth lead, Kenneth Inocencio, describing scenarios where swarms of low-cost drones could overwhelm traditional defenses.

The move isn't limited to startups. Major defense primes like Boeing and Lockheed Martin are also deep into developing Collaborative Combat Aircraft (CCA). However, the agile, Silicon Valley-backed firms are positioning themselves as the nimble innovators capable of delivering cutting-edge systems at speed.

"Because of regional conflicts and uncertainty regarding China's intentions, a lot of Asia-Pacific allies are tooling up, some of them in a significant way," said Stayne Hoff, Red Cat's director of business development for Asia-Pacific. The company announced a new order from an unnamed regional partner for its Black Widow reconnaissance drone at the show.

Reactions & Analysis:

Dr. Evelyn Reed, Senior Fellow at the Center for Strategic Studies: "This commercial push is a direct extension of U.S. defense strategy. By enabling allies with interoperable, advanced unmanned systems, it strengthens integrated deterrence without always putting U.S. personnel forward. The technology transfer, however, will be a delicate diplomatic dance."

Marcus Thorne, Defense Industry Consultant in Singapore: "The value proposition is compelling. These companies aren't just selling hardware; they're selling a combat-proven software ecosystem and rapid iteration cycles that traditional manufacturers struggle to match. For smaller nations, it's a force multiplier."

Li Wei, Commentator for 'Global Security Review': "This is a blatant attempt to militarize the region and create a siege mentality against China. These arms merchants are profiting from stoking fear and tension. Their talk of 'deterrence' is just a sales pitch for a new arms race that will ultimately make Asia less secure."

Captain Aris Mendoza (Ret.), Former Philippine Navy Officer: "The capabilities are impressive, but the real test is integration and sustainability. Can our forces maintain these complex systems? The strategic calculus is clear, but the practical challenges are immense."

(Reporting by Joe Brock; Editing by Jamie Freed)