U.S. Drone Makers Pivot to Asia, Capitalizing on Regional Security Fears
By Joe Brock
SINGAPORE, Feb 5 (Reuters) – The Singapore Airshow, long a showcase for commercial aviation giants and sleek fighter jets, has a new headline act: American-made drones. Several U.S. defense technology companies are making their debut at the event this week, aggressively marketing their systems to Asian nations increasingly anxious about China's growing military assertiveness.
The transformative role of unmanned systems in the Ukraine conflict has triggered a flood of investment into drone and military AI startups, propelling firms like California's Anduril Industries and Shield AI into the spotlight. This shift is now redrawing the landscape of global arms bazaars, where small, smart, and often expendable drones are commanding as much attention as traditional multi-million dollar platforms.
For military planners across the Pacific, the appeal is clear. The war in Ukraine has served as a brutal proving ground, demonstrating how relatively low-cost drones can devastate expensive armor and reshape battlefield dynamics. U.S. firms are now leveraging that combat pedigree and initial Pentagon backing to argue they hold the key to countering numerical advantages in a potential regional conflict.
"The operational environment here demands resilience. Partners are seeking credible capabilities for intelligence and strike missions even when GPS and communications are compromised," Shield AI co-founder Brandon Tseng told Reuters at the show. The company announced a deal to supply its Hivemind AI autonomy software to Singapore's ST Engineering, following the deployment of its V-BAT reconnaissance drones in Ukraine.
Establishing a Foothold
The commercial offensive is backed by tangible infrastructure moves. Anduril, valued at $30 billion, has recently opened offices in Taiwan, South Korea, and Japan, and has already secured sales of its Altius loitering munitions to Taiwan. Beyond smaller tactical drones, the show floor featured models of next-generation "loyal wingman" drones—Collaborative Combat Aircraft (CCA)—designed to operate alongside manned fighter jets at a fraction of the cost.
The strategy extends to local production. Neros Technologies, which holds a U.S. Marine Corps contract for its Archer attack drone, plans to establish factories in South Korea, the Philippines, Singapore, and Japan. The goal, according to the company's Asia growth lead Kenneth Inocencio, is to create regional stockpiles of attritable drones that could be deployed en masse in a crisis. "The concept is about saturation and overwhelming defense systems," Inocencio explained.
Red Cat Holdings, another U.S. supplier, announced an order from an unnamed Asia-Pacific country for its Black Widow reconnaissance drone at the show. "Regional uncertainties are driving a significant recapitalization effort among several U.S. allies and partners," said Stayne Hoff, Red Cat's Asia-Pacific business development director.
Analyst & Reader Reaction
Dr. Aris Tanaka, Security Analyst at the Pacific Forum: "This isn't just arms sales; it's the export of a new warfare doctrine centered on distributed, AI-enabled systems. The U.S. is helping shape the architecture of allied defense in the region, potentially creating a more integrated and resilient deterrent network."
Sarah Chen, Technology Journalist: "The speed of this pivot from Ukraine to Asia is remarkable. It shows how modern combat can accelerate innovation and commercialization simultaneously, blurring the lines between Silicon Valley and the traditional defense industrial base."
Mark Devlin, Former Naval Officer (Commenting on a defense forum): "Let's be clear: we're pouring gasoline on a fire. Flooding the region with advanced drones under the guise of 'stability' is a recipe for escalation. Every new system sold creates a new vulnerability and a new reason for pre-emptive action. This isn't deterrence; it's profiteering from fear."
Priya Sharma, Regional Policy Researcher: "The local production plans are the most significant long-term development. They suggest a move away from simple arms transfers toward deeper technological partnerships, which could have lasting impacts on the regional balance of power and industrial capabilities."
(Reporting by Joe Brock; Editing by Jamie Freed)