ZenaTech updates its drone manufacturing strategy, focusing on Taiwan and Arizona to enhance supply chain security and compliance.
Quiver AI Summary
ZenaTech, Inc. has announced an update on its ZenaDrone subsidiary's manufacturing and supply chain strategy in response to recent economic changes and increased tariffs on Chinese imports by the U.S. administration. The company will continue to source components for its drones from its Taiwan-based Spider Vision Sensors to mitigate supply chain risks and ensure compliance with the National Defense Authorization Act for military products manufactured in Arizona. The new tariffs, which have doubled from 10% to 20% on Chinese drone imports, create a more competitive environment for American manufacturers like ZenaTech, as they shift to domestic production and enjoy potential tax incentives. This strategic move positions ZenaTech to better meet rising defense demands and avoid disruptions that competitors may face, while reinforcing its commitment to U.S. manufacturing and job creation.
Potential Positives
- ZenaDrone will continue to source and manufacture UAV components from Taiwan, ensuring a reliable supply chain that aligns with NDAA compliance for defense contracts.
- The company's strategic shift to domestic manufacturing in Arizona may lead to job creation and enhance ZenaTech's competitiveness in the US market.
- Increased tariffs on Chinese drone imports could provide ZenaTech with a competitive advantage over domestic rivals who may face supply chain issues due to reliance on Chinese components.
- Achieving certifications like Green UAS and Blue UAS will enhance ZenaTech’s capability to meet stringent security and compliance standards, expanding its market access in defense and commercial sectors.
Potential Negatives
- Increased tariffs on Chinese drone imports may lead to higher costs for ZenaTech, affecting pricing and competitiveness in a market dominated by cheaper Chinese products.
- The need to ensure NDAA compliance and the emphasis on domestic manufacturing could indicate potential challenges in fulfilling government contracts and maintaining quality standards.
- Reliance on Taiwan for manufacturing components may expose ZenaTech to geopolitical risks and supply chain vulnerabilities if tensions escalate in the region.
FAQ
What is ZenaTech's focus in the technology sector?
ZenaTech specializes in AI drones, Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions.
Where does ZenaDrone manufacture its drone components?
ZenaDrone manufactures its drone cameras and sensors in Taiwan and will produce drones in Arizona.
How is ZenaTech affected by US tariffs on Chinese imports?
The increased tariffs on Chinese drone imports benefit ZenaTech by reducing competition and supporting domestic production.
What certifications does ZenaDrone aim to achieve?
ZenaDrone plans to achieve Green UAS and Blue UAS certifications for cybersecurity and compliance with US defense requirements.
What industries does ZenaTech serve with its drone solutions?
ZenaTech serves industries including agriculture, defense, logistics, law enforcement, health, government, and industrial sectors.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
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 10% to 20% which will negatively impact many US drone companies and customers given the drone industry dominance of China.
“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.
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