On July 28, fitness equipment manufacturing giant Dyaco International Inc. (1598.TW) officially announced a major strategic transformation, expanding into the AI unmanned vehicle market across sea, land, and air applications. By establishing its US subsidiary, Santi Innovation, and building a production base in Arkansas, Dyaco has formed a “Taiwan-US dual-axis” manufacturing and delivery footprint. Leveraging its decades of precision manufacturing experience, talent acquisition, and established US channels, Dyaco aims to begin generating revenue from this new venture by the end of this year, while continuing to expand its core commercial fitness equipment business globally.
1. Strategic Entry into Sea, Land, and Air AI Unmanned Vehicles
Dyaco’s expansion aims to capture high-value opportunities in automation and defense technology. Product planning covers multi-domain applications, targeting key vertical markets including:
National Defense and Security: Tactical surveillance, security patrol, and defense logistics.
Logistics and Transportation: Autonomous last-mile delivery and industrial cargo handling.
Smart Agriculture: Precision crop monitoring, automated spraying, and land surveying.
Infrastructure Inspection: Remote monitoring for power grids, energy pipelines, and civil engineering.
Disaster Relief: Emergency search and rescue operations in hazardous environments.
2. Establishment of US Subsidiary & “Taiwan-US Dual-Axis” Manufacturing
To establish a robust global footprint and service capacity, Dyaco has deployed a localized supply chain and manufacturing framework:
US Subsidiary Establishment: Founded Santi Innovation in the United States to oversee component procurement, design services, production, and system integration.
Arkansas Base Deployment: Completed the initial setup of its production facility in Arkansas, USA, which already possesses the required infrastructure for assembly, testing, and mass production.
“Taiwan-US Dual-Axis” Capability: By pairing its Taiwan manufacturing hub with the Arkansas site, Dyaco forms a synchronized dual-axis operational configuration. This local presence significantly reduces tariff burdens and mitigates geopolitical risks for strategic partners expanding into the US market.
3. Business Model, ODM/OEM Services & Revenue Timeline
Operations under Santi Innovation and the Arkansas base will adopt a dual-track business model to maximize operational efficiency:
Full-Lifecycle Manufacturing: Delivering end-to-end capabilities spanning key component procurement, engineering design services, precision production, final assembly, and quality testing.
AI Hardware & Software Integration: Incorporating AI intelligence and autonomous systems software/hardware into long-term planning, aiming to build a comprehensive, all-in-one AI unmanned vehicle platform solution (Total Solution Platform).
Dual-Track Production Model:
Proprietary Line Support: Fulfilling localized production requirements for Dyaco’s proprietary product lines.
ODM/OEM Partnerships: Opening manufacturing and engineering services to external strategic partners, offering contract design, key component localization, and final assembly for drone and unmanned vehicle operators.
Revenue Target: The company is currently in advanced discussions with multiple prospective partners regarding US-based manufacturing, supply chain integration, and final assembly, aiming for initial revenue contributions by the end of this year.
4. Industry Analysis: Three Core Strengths & Market Outlook
According to research firm Grand View Research, the global drone market is projected to expand from USD 83.8 billion (approx. NTD 2.7 trillion) in 2025 to USD 182.4 billion (approx. NTD 5.9 trillion) by 2033, representing a Compound Annual Growth Rate (CAGR) of 9.5% and demonstrating immense commercial potential.
Industry analysts highlight three key competitive advantages underpinning Dyaco’s cross-sector expansion:
Talent Deployment: Successful recruitment of a dedicated core team with extensive operational and technical experience in the unmanned vehicle industry.
Precision Manufacturing Foundation: Leveraging decades of independent R&D design experience, precision machining expertise, and existing supply chain resources directly adaptable to AI and drone applications.
Established Distribution Channels & Infrastructure: Synergizing the “Taiwan-US dual-axis” sites with the sales, operational, and after-sales service channels established through long-term cultivation of the US fitness equipment market.
Geographic Expansion: In addition to deepening its presence in the domestic Taiwan market, Dyaco plans to aggressively expand across overseas markets, including Europe, the Americas, the Middle East, Northeast Asia, and Southeast Asia.
5. Core Fitness Equipment Business: Breakthroughs in Major Gym Chains
While actively developing emerging ventures, Dyaco’s legacy core fitness equipment business continues to achieve significant milestones:
Penetration into Top Gym Chains: In commercial fitness equipment, Dyaco recently succeeded in penetrating the world’s largest fitness chain alongside several leading North American commercial fitness brands.
New Product Expansion: Launched a new line of commercial strength training equipment, with relevant market expansion converting steadily into concrete commercial orders.
Market Share Growth Target: Based on 2025 revenue projections, Dyaco currently holds approximately 0.3% of the global fitness equipment market. The company has set a target to surpass 1.0% market share within the next five years, indicating substantial runway for long-term growth.
6. Financial Targets & Operational Outlook
Dyaco maintains its objective of steering total revenue back onto a growth trajectory this year, while targeting consecutive profitability starting this year:
Dual-Track Engine: Combining its core fitness equipment business with its emerging AI unmanned vehicle venture to drive sustainable multi-track growth.
Long-Term Financial Goal: Continuously optimizing current operational efficiency to steadily progress toward a long-term target of a 15% Return on Equity (ROE).
