The authorities expect first orders by July next year.

Taiwan has allocated $1.6 billion in public funding to develop a local supply chain for drones within a year in the event of a conflict with Beijing, as per the Financial Times citing top Taiwanese officials.

The proposal is part of Taiwanese President Tsai Ing-wen’s efforts to urge armed troops to focus on what he described as an "increasingly pressing danger from Beijing."

Taiwan's administration intends to form a "national team" of Taiwanese private drone makers to develop the production of unmanned aerial vehicle systems for specific purposes if tensions in the Taiwan Strait rise, as per the report.

It also added that the authorities expect the first orders by July next year.

"Our military has so far failed to present a clear concept for the use of unmanned aerial vehicles in warfighting and to capitalize on our private sector’s significant capabilities in that field," one senior official in Tsai’s administration said as quoted by Financial Times.

This comes as tensions over Taiwan began to soar shortly before US House Speaker Pelosi’s visit to Taiwan, with Beijing cautioning Washington that if Pelosi paid a trip to Taiwan, this would generate repercussions and China would resort to drastic measures.

China considers Taiwan part of its territory and opposes any direct official foreign contact with the island in accordance with the One-China policy. Meanwhile, the US is fueling the tensions by providing Taiwan with numerous weapon systems, not to mention supporting separatist elements.