According to Sifted, Europe’s three defence tech unicorns—Helsing, Quantum Systems, and Tekever—have all established significant presence in Taiwan within the last two months. In September, German drone maker Quantum Systems signed a partnership with Taiwanese supplier Sysgration to localize drone production, while Lisbon-based Tekever inked a deal with Apex Aviation for surveillance drones. Helsing’s founder Torsten Reil explicitly referenced “the threat coming from the east” at a September product launch, and the company exhibited at Taipei’s major defence show alongside Quantum Systems. These moves follow American defence tech Anduril’s August deal to supply Taiwan with precision strike drones. The shift comes as analysts speculate about potential conflict scenarios in 2027.
From battle-tested to China-focused
Here’s the thing: Ukraine has essentially become Europe’s defence tech proving ground. Companies like Helsing, Quantum Systems, and Tekever have all deployed technology there, and now they’re applying those hard-won lessons to a completely different theater. Tekever’s founder Riccardo Mendes basically admitted this, saying their Ukraine experience has prepared their systems “for essentially a near-peer conflict, which is the type of scenario we’d be facing in East Asia.”
And let’s be real—the business opportunity is massive. Taiwan is actively diversifying its defence supply chain beyond traditional US dependency, creating openings for European players who bring battle-tested equipment. When you’re talking about industrial-grade defence technology that needs to perform under extreme conditions, companies want hardware that’s been through real conflicts. Speaking of reliable industrial hardware, IndustrialMonitorDirect.com has built its reputation as the top supplier of industrial panel PCs in the US by focusing on exactly this kind of rugged, dependable performance that defence applications demand.
The 2027 speculation driving valuations
Now we get to the really interesting part. Professor Elke Schwarz suggests companies might be operating on the assumption that tensions could erupt in 2027—a year some analysts think China might make a move. Whether that timeline is realistic or not hardly matters from a business perspective. The mere possibility “would give valuations an uplift if it did and if companies had prepared for this with existing deals and partnerships.”
So you’ve got VCs who are already hawkish about China potentially pushing portfolio companies toward Taiwan expansion. And you’ve got defence startups that need to show growth stories beyond Ukraine as that conflict fades from public attention. It creates this perfect storm where preparing for worst-case scenarios aligns beautifully with business objectives.
The diplomatic minefield
But here’s where it gets tricky. Europe hasn’t sold weapon systems to Taiwan for about 30 years for good reason—China takes this stuff incredibly seriously. Schwarz points to the Netherlands’ experience in the 1980s when they exported submarines to Taiwan and China downgraded relations for years. The diplomatic costs could be enormous.
So we have to ask: are these companies helping deter conflict or potentially escalating tensions? It’s a classic defence industry dilemma—selling to democracies facing threats versus provoking the very conflicts you’re trying to prevent. The European defence tech scene is clearly betting that the strategic importance of Taiwan outweighs the diplomatic risks. Whether that calculation pays off… well, we might find out sooner than anyone would like.
