U.S. drone maker Skydio is doubling down on domestic manufacturing as it scales operations following China-imposed sanctions tied to its Taiwan sales, according to CEO Adam Bry.
“We’re all-in on hardcore U.S. manufacturing,” he said on the “Sourcery with Molly O’Shea” podcast on April 23, describing the company’s push to reduce reliance on foreign supply chains.
At the same time, Skydio is racing to expand production amid surging demand from public safety agencies, the military and critical infrastructure operators. Bry said demand has “exploded” in recent years, making production capacity the company’s primary constraint.
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Funding Round And Growth Metrics
Bry’s comments come alongside Skydio’s $110 million Series F funding round, which valued the company at $4.4 billion post-money, according to a company blog post on April 23.
“The most significant fact in our Series F is how little we are raising,” Bry said.”Despite investor demand to put substantially more into the company… our capital needs are rapidly decreasing.”
He said the funding reflects a business generating hundreds of millions in annual revenue with improving unit economics and declining capital needs.
China Sanctions Test Supply Chain
The company’s manufacturing strategy faced a major test in October 2024 when China restricted suppliers from providing key components after Skydio sold drones to Taiwan’s National Fire Agency, according to media reports.
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The move disrupted access to batteries, one of the last China-sourced parts in its supply chain. Skydio temporarily rationed batteries to one per drone while accelerating efforts to secure alternative suppliers, Bry said in the post, citing short-term impacts on customers. He added that the company had already been shifting production away from China and manufactures its drones in California.
Scaling U.S. Production
Bry said in the post that the sanctions were a “clarifying moment” that exposed vulnerabilities in global supply chains.
Skydio now operates what it says is one of the largest drone manufacturing facilities in the U.S., where each unit undergoes hundreds of assembly and testing checks, according to the company. Production has expanded to support major contracts, including a U.S. Army deal worth more than $52 million for over 2,500 Skydio X10D drones.
Bry said on the podcast that Skydio plans to significantly increase output as it works to meet rising demand and accelerate new product development.
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Long-Term Strategy And Competitive Pressure
Skydio’s strategy dates back to its early years. In 2014, the company declined an acquisition offer from Chinese drone maker DJI, a decision Bry said on the podcast was driven by a belief in the long-term value of autonomous drone systems.
Skydio is competing against “the best of Chinese industry” as it works to scale production and reduce reliance on foreign supply …
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