ZenaTech’s ZenaDrone Benefits from New Chinese Tariffs Also Helping its Commercial and Defense Customer Markets
ZenaTech (NASDAQ: ZENA) announces strategic updates regarding its ZenaDrone subsidiary's manufacturing operations in response to new US tariffs on Chinese imports. The company's Taiwan-based Spider Vision Sensors facility, opened in November 2024, will continue manufacturing drone components including cameras, LiDAR, thermal sensors, and circuit boards.
The US administration's decision to increase tariffs on Chinese drones and parts from 10% to 20% positions ZenaTech advantageously, as the company's Taiwan-based manufacturing strategy helps avoid supply chain disruptions while maintaining NDAA compliance for US defense contracts. The company plans to manufacture US military-destined drones at its upcoming Arizona facilities, leveraging potential US manufacturing tax breaks.
Spider Vision Sensors' Taiwan operations will supply components to both the Sharjah, UAE manufacturing facilities and the planned Arizona site. The company aims to achieve Green UAS and Blue UAS certifications, ensuring cybersecurity and country of origin compliance for military contracts.
ZenaTech (NASDAQ: ZENA) annuncia aggiornamenti strategici riguardanti le operazioni di produzione della sua controllata ZenaDrone in risposta ai nuovi dazi statunitensi sulle importazioni cinesi. L'impianto Spider Vision Sensors situato a Taiwan, aperto nel novembre 2024, continuerà a produrre componenti per droni, tra cui telecamere, LiDAR, sensori termici e circuiti stampati.
La decisione dell'amministrazione statunitense di aumentare i dazi sui droni e sui componenti cinesi dal 10% al 20% pone ZenaTech in una posizione vantaggiosa, poiché la strategia di produzione basata a Taiwan dell'azienda aiuta a evitare interruzioni nella catena di approvvigionamento, mantenendo al contempo la conformità con l'NDAA per i contratti di difesa statunitensi. L'azienda prevede di produrre droni destinati all'esercito statunitense presso i suoi prossimi impianti in Arizona, sfruttando i potenziali sgravi fiscali per la produzione negli Stati Uniti.
Le operazioni di Spider Vision Sensors a Taiwan forniranno componenti sia agli impianti di produzione di Sharjah, negli Emirati Arabi Uniti, sia al sito pianificato in Arizona. L'azienda mira a ottenere le certificazioni Green UAS e Blue UAS, garantendo la sicurezza informatica e la conformità al paese di origine per i contratti militari.
ZenaTech (NASDAQ: ZENA) anuncia actualizaciones estratégicas sobre las operaciones de fabricación de su filial ZenaDrone en respuesta a los nuevos aranceles estadounidenses sobre las importaciones chinas. La instalación Spider Vision Sensors, ubicada en Taiwán y abierta en noviembre de 2024, continuará fabricando componentes para drones, incluidos cámaras, LiDAR, sensores térmicos y placas de circuito.
La decisión de la administración estadounidense de aumentar los aranceles sobre los drones y las piezas chinas del 10% al 20% coloca a ZenaTech en una posición ventajosa, ya que la estrategia de fabricación de la empresa en Taiwán ayuda a evitar interrupciones en la cadena de suministro, manteniendo al mismo tiempo el cumplimiento del NDAA para los contratos de defensa de EE. UU. La empresa planea fabricar drones destinados a la milicia estadounidense en sus próximas instalaciones en Arizona, aprovechando los posibles beneficios fiscales de fabricación en EE. UU.
Las operaciones de Spider Vision Sensors en Taiwán suministrarán componentes tanto a las instalaciones de fabricación en Sharjah, Emiratos Árabes Unidos, como al sitio planeado en Arizona. La empresa tiene como objetivo obtener las certificaciones Green UAS y Blue UAS, garantizando la ciberseguridad y el cumplimiento del país de origen para los contratos militares.
제나텍 (NASDAQ: ZENA)은 중국 수입품에 대한 새로운 미국 관세에 대응하여 자회사 제나드론의 제조 운영에 대한 전략적 업데이트를 발표했습니다. 2024년 11월에 개소한 대만의 스파이더 비전 센서 시설은 카메라, LiDAR, 열 센서 및 회로 기판을 포함한 드론 부품을 계속 제조할 것입니다.
중국 드론 및 부품에 대한 관세를 10%에서 20%로 인상하기로 한 미국 정부의 결정은 제나텍에게 유리한 위치를 제공하며, 대만 기반의 제조 전략은 공급망 중단을 피하고 미국 방위 계약에 대한 NDAA 준수를 유지하는 데 도움을 줍니다. 이 회사는 미국 군대에 배치될 드론을 아리조나의 신규 시설에서 제조할 계획이며, 미국 제조 세금 감면 혜택을 활용할 예정입니다.
스파이더 비전 센서의 대만 운영은 아랍에미리트 샤르자의 제조 시설과 계획된 아리조나 사이트에 부품을 공급할 것입니다. 이 회사는 군사 계약에 대한 사이버 보안 및 원산지 준수를 보장하기 위해 Green UAS 및 Blue UAS 인증을 달성하는 것을 목표로 하고 있습니다.
ZenaTech (NASDAQ: ZENA) annonce des mises à jour stratégiques concernant les opérations de fabrication de sa filiale ZenaDrone en réponse aux nouveaux tarifs américains sur les importations chinoises. L'installation Spider Vision Sensors basée à Taïwan, ouverte en novembre 2024, continuera de fabriquer des composants de drones, y compris des caméras, des LiDAR, des capteurs thermiques et des circuits imprimés.
La décision de l'administration américaine d'augmenter les tarifs sur les drones et les pièces chinois de 10 % à 20 % place ZenaTech dans une position avantageuse, car la stratégie de fabrication de l'entreprise basée à Taïwan aide à éviter les perturbations de la chaîne d'approvisionnement tout en maintenant la conformité avec l'NDAA pour les contrats de défense américains. L'entreprise prévoit de fabriquer des drones destinés à l'armée américaine dans ses prochaines installations en Arizona, tirant parti des éventuelles réductions fiscales sur la fabrication aux États-Unis.
Les opérations de Spider Vision Sensors à Taïwan fourniront des composants à la fois aux installations de fabrication de Sharjah, aux Émirats arabes unis, et au site prévu en Arizona. L'entreprise vise à obtenir les certifications Green UAS et Blue UAS, garantissant la cybersécurité et la conformité au pays d'origine pour les contrats militaires.
ZenaTech (NASDAQ: ZENA) gibt strategische Updates zu den Fertigungsoperationen seiner Tochtergesellschaft ZenaDrone bekannt, um auf die neuen US-Zölle auf chinesische Importe zu reagieren. Die im November 2024 eröffnete Spider Vision Sensors-Anlage in Taiwan wird weiterhin Drohnenkomponenten wie Kameras, LiDAR, Wärmesensoren und Leiterplatten herstellen.
Die Entscheidung der US-Administration, die Zölle auf chinesische Drohnen und Teile von 10% auf 20% zu erhöhen, positioniert ZenaTech vorteilhaft, da die taiwanesische Fertigungsstrategie des Unternehmens hilft, Unterbrechungen der Lieferkette zu vermeiden und gleichzeitig die NDAA-Konformität für US-Verteidigungsverträge aufrechtzuerhalten. Das Unternehmen plant, in seinen kommenden Einrichtungen in Arizona Drohnen für das US-Militär zu produzieren und dabei mögliche Steuervergünstigungen für die US-Produktion zu nutzen.
Die taiwanesischen Operationen von Spider Vision Sensors werden Komponenten sowohl an die Produktionsstätten in Sharjah, VAE, als auch an den geplanten Standort in Arizona liefern. Das Unternehmen strebt an, die Zertifizierungen Green UAS und Blue UAS zu erlangen, um die Cybersicherheit und die Herkunftskonformität für militärische Verträge zu gewährleisten.
- Immunity to increased Chinese tariffs (10% to 20%) due to Taiwan-based manufacturing
- Strategic advantage over competitors relying on Chinese components
- NDAA-compliant manufacturing chain for US defense contracts
- Potential eligibility for US manufacturing tax breaks
- In-house component manufacturing capability reducing supply chain risks
- Multiple manufacturing locations may increase operational costs
- Still pending important Green UAS and Blue UAS certifications
- Arizona manufacturing facility not yet operational
Insights
ZenaTech's strategic pivot in manufacturing represents a significant competitive advantage amid the newly increased Chinese import tariffs. The doubling of tariffs from
The vertical integration strategy is particularly noteworthy. By manufacturing critical components in-house (cameras, LiDAR, thermal sensors, circuit boards), ZenaTech gains greater control over quality, costs, and intellectual property while ensuring NDAA compliance. Taiwan offers an ideal balance of advanced electronics manufacturing capabilities and cost-effectiveness without the geopolitical complications of Chinese production.
This dual-location manufacturing approach (Taiwan for components, Arizona for defense-oriented finished products) creates a resilient supply chain that addresses multiple strategic objectives: regulatory compliance, tariff avoidance, and market-specific production capabilities. The company has effectively transformed what would be a significant headwind for competitors into a structural advantage that should provide lasting benefits as the drone industry adjusts to these new economic realities.
The announcement positions ZenaTech to capitalize on the increasing prioritization of domestic drone production for defense applications. By establishing NDAA-compliant manufacturing capabilities through its Taiwan operation and planned Arizona facilities, the company addresses a critical requirement for accessing the defense market.
The mention of pursuing Green UAS and Blue UAS certifications is particularly significant. These programs were specifically created to provide the Department of Defense with trusted small unmanned aircraft options that meet stringent cybersecurity and supply chain security requirements. As Chinese manufacturers like DJI face increasing restrictions in government applications, these certifications open substantial market opportunities.
The Biden administration's focus on reshoring manufacturing creates a favorable policy environment for ZenaTech's strategy. Defense procurement increasingly emphasizes domestic production capacity and supply chain security, giving preference to companies that can meet these requirements. ZenaTech's foresight in establishing non-Chinese manufacturing infrastructure before the tariff increases demonstrates strategic anticipation of regulatory trends that now benefits their competitive positioning.
While the actual revenue impact remains to be seen, this positioning significantly enhances ZenaTech's ability to compete for defense contracts that prioritize domestic production and supply chain security.
VANCOUVER, British Columbia, March 06, 2025 (GLOBE NEWSWIRE) -- ZenaTech, Inc. (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology company specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions, today announces an update on its US-based ZenaDrone subsidiary’s Arizona and Taiwan manufacturing supply chain strategy in light of the current economic changes and tariffs announced by the current US Administration. ZenaDrone will continue to source and manufacture drone cameras, sensors and other related components at its Taiwan-based Spider Vision Sensors company to reduce its supply chain risk and ensure NDAA-compliant parts for its US Defense-destined drone products, which will be manufactured in Arizona. The company also benefits from recent announcements doubling tariffs on Chinese imports including drones and parts from
“The current administration’s focus on strengthening US manufacturing and reducing reliance on Chinese drone imports is a game-changer for American companies like ours. With increased tariffs on Chinese drones and components, and new incentives for domestic production, we are well-positioned to expand our operations to manufacture in Arizona, also creating more high-quality American jobs. Since we’ve already initiated sourcing of our component parts from Taiwan instead of China, we can avoid supply chain disruptions while benefiting from potential US manufacturing tax breaks. We believe this makes our drones more competitive for both government and commercial markets,” said CEO Shaun Passley, Ph.D.
“This also puts us ahead of domestic competitors who may be facing challenges with supply chain instability and less access to cutting-edge technologies. By leveraging Taiwan's capabilities and our focus on security and compliance, we're poised to meet increasing defense demand while minimizing operational risks,” added Dr. Passley.
The Spider Vision Sensors Taiwan office opened in November 2024 to manufacture drone cameras, sensors, electronics, and components, including LiDAR (Light Detection and Ranging), thermal, infrared, and multi-spectral sensors, and circuit boards to incorporate into ZenaDrone’s finished products. Having in-house manufactured sensors and components will enable ZenaDrone to maintain a steady supply to fulfill customer drone order needs at its Sharjah, UAE manufacturing facilities as well as its future Arizona-based drone manufacturing facilities for US military-destined “Made in America” drones.
Taiwan was selected due to its size and skills as an electronics hub, and the availability of low-cost alternative components versus those from China. Spider Vision Sensors will ensure ZenaDrone’s products and supply chain are compliant with the US NDAA (National Defense Authorization Act) requirements necessary to do business with the US Military. This along with the Green UAS (Uncrewed Arial System) and the Blue UAS are important certifications ensuring cybersecurity and country of origin compliance for drone companies which the company has stated it plans to achieve.
About ZenaTech
ZenaTech (Nasdaq: ZENA) (FSE: 49Q) (BMV: ZENA) is a technology company specializing in AI drone, Drone as a Service (DaaS), enterprise SaaS and Quantum Computing solutions for mission-critical business applications. Since 2017, the Company has leveraged its software development expertise and grown its drone design and manufacturing capabilities through ZenaDrone, to innovate and improve customer inspection, monitoring, safety, security, compliance, and surveying processes. With enterprise software customers using branded solutions in law enforcement, health, government, and industrial sectors, and drones being implemented in these plus agriculture, defense, and logistics sectors, ZenaTech’s portfolio of solutions helps drive exceptional operational efficiencies, accuracy and cost savings. The Company operates through seven global offices in North America, Europe, Taiwan, and UAE, and is growing a DaaS business model and global partner network.
About ZenaDrone
ZenaDrone, a wholly owned subsidiary of ZenaTech, develops and manufactures autonomous business drone solutions that can incorporate machine learning software, AI, predictive modeling, Quantum Computing, and other software and hardware innovations. Created to revolutionize the hemp farming sector, its specialization has grown to multifunctional drone solutions for industrial surveillance, monitoring, inspection, tracking, process automation and defense applications. Currently, the ZenaDrone 1000 drone is used for crop management applications in agriculture and critical field cargo applications in the defense sector, the IQ Nano indoor drone is used for inventory management in the warehouse and logistics sectors, and the IQ Square is an indoor/outdoor drone designed for land survey and inspections use in commercial and defense sectors.
Contacts for more information:
Company, Investors and Media:
Linda Montgomery
ZenaTech
312-241-1415
investors@zenatech.com
Investors:
Michael Mason
CORE IR
investors@zenatech.com
Safe Harbor
This press release and related comments by management of ZenaTech, Inc. include “forward-looking statements” within the meaning of U.S. federal securities laws and applicable Canadian securities laws. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This forward-looking information relates to future events or future performance of ZenaTech and reflects management’s expectations and projections regarding ZenaTech’s growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “aim”, “seek”, “is/are likely to”, “believe”, “estimate”, “predict”, “potential”, “continue” or the negative of these terms or other comparable terminology intended to identify forward-looking statements. Forward-looking information in this document includes, but is not limited to ZenaTech’s expectations regarding its revenue, expenses, production, operations, costs, cash flows, and future growth; expectations with respect to future production costs and capacity; ZenaTech's ability to deliver products to the market as currently contemplated, including its drone products including ZenaDrone 1000 and IQ Nano; ZenaTech’s anticipated cash needs and it’s needs for additional financing; ZenaTech’s intention to grow the business and its operations and execution risk; expectations with respect to future operations and costs; the volatility of stock prices and market conditions in the industries in which ZenaTech operates; political, economic, environmental, tax, security, and other risks associated with operating in emerging markets; regulatory risks; unfavorable publicity or consumer perception; difficulty in forecasting industry trends; the ability to hire key personnel; the competitive conditions of the industry and the competitive and business strategies of ZenaTech; ZenaTech’s expected business objectives for the next twelve months; ZenaTech’s ability to obtain additional funds through the sale of equity or debt commitments; investment capital and market share; the ability to complete any contemplated acquisitions; changes in the target markets; market uncertainty; ability to access additional capital, including through the listing of its securities in various jurisdictions; management of growth (plans and timing for expansion); patent infringement; litigation; applicable laws, regulations, and any amendments affecting the business of ZenaTech.
FAQ
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