Shifting geopolitics and markets
After 46 years, Chile's biennial air and space exhibition, FIDAE (Feria Internacional del Aire y del Espacio - International Air and Space Show), has consolidated its place as the largest defense event in Latin America. FIDAE 2026 opened its doors this April in Santiago against a changing backdrop, with geopolitical and market implications for the region.
For starters, Chile has banned two historic Latin American weapons suppliers: Russia and Israel. Russia's absence requires little explanation. Since the invasion of Ukraine in 2022, the Russian defense industry's presence at major international exhibitions has collapsed. In Latin America, Russian-origin equipment remains in service in several countries, causing complications around maintenance and spare parts, and effectively removing a competitor from the scene.
The case of Israel is particularly notable due to the widespread presence of its equipment across the three branches of the Chilean armed forces. This expulsion led Israel to relocate its military attaché office to Argentina. Although Chile’s recently inaugurated president, Antonio Kast, has lifted the veto on Israel, it was not done with sufficient advance notice for the Israeli Ministry of Defense, through its export arm, the International Defense Cooperation Directorate (SIBAT), to set up its traditional stand representing the Israeli industry. Individual companies did not do so either, although for a brief moment it appeared that Israel Aerospace Industries (IAI) would participate, which generated backlash from the Palestinian community in Chile—one of the most significant outside the Middle East. Ultimately, however, only Brazilian subsidiaries of Elbit Systems -AEL and Ares- participated as part of that country’s pavilion, along with the consulting firm DQ Pro, representing Elbit Systems of America. It is still too early to deliver a verdict on the future of military relations between the two countries.
Türkiye’s moment
Chile’s decision to exclude Israeli companies has reverberated across the regional market. Notably, Chile first selected Elbit Land Systems for the Leopard tank modernization program in 2021, to abruptly cancel the award one year later. That opening was seized by Turkish company Aselsan, which won the contract in 2023 for a collaboration program with Factories and Workshops of the Chilean Army (FAMAE), the Chilean Army’s state-owned enterprise, and has since established its first subsidiary in Latin America.
That decision, followed by the Israeli ban, catalyzed a structural shift that became evident at FIDAE 2026. With the backing of the Secretariat of Defense Industries (SSB) and the Defense and Aerospace Industry Exporters' Association (SSI), Turkish state-owned companies occupied some of the largest and most prominent stands across three exhibition halls. In addition to Aselsan, Mechanical and Chemical Industry Corporation (MKE), Defense Technologies Engineering and Trade (STM), Havelsan, and Roketsan all had major displays. The visual impression was unmistakable: Ankara has made a strategic decision to pursue Latin America as a defense export market and is deploying institutional muscle to match.
Turkish representatives pointed to Türkiye’s NATO membership and its reputation for genuine technology transfer as key differentiating advantages. That framing aims to sell interoperability with the Western alliance, along with a real industrial partnership rather than a one-way transaction.
The Emirates comes to Chile
This edition also marked the debut of the UAE’s EDGE Group in Chile, in a joint presence with its recently acquired, parially owned Brazilian subsidiary, Integrated Systems with High Technological Content (SIATT). In addition to the ANAVIA rotary-wing drone, the SHADOW 25 loitering munition, and NIMR armored vehicles, EDGE showcased the MANSUP anti-ship missile (now also adapted for land launch) and the MAX 1.2 anti-tank missile, both originally developed by SIATT.
Another Emirati presence in Chile, although for the second time, was International Armored Group (IAG), offering its wheeled armored vehicle solutions—MRAP, IFV, and APC—to armed and security forces. Despite only a few years in the region, IAG has already secured sales in Colombia, Brazil’s military police, and Chile’s gendarmerie.
South Korea follows the contracts
South Korea’s defense industry has been expanding aggressively across global markets, and Latin America is increasingly part of that story. In this case, the regional beachhead was Peru and its naval shipbuilding company, Industrial Services of the Navy (SIMA). The relationship began in 2013 with co-production contracts between SIMA, Daewoo International, and DaeSun for two Makassar-class LPDs, as well as with STX Corporation for technical assistance on six patrol boats.
However, 2025 marked a significant milestone, with SIMA signing a USD 460 million manufacturing contract with Hyundai Heavy Industries (HHI) for a frigate, two landing craft units, and an offshore patrol vessel (OPV). SIMA also signed an MOU with HHI for a prospective submarine project. In parallel, the Peruvian Army awarded Hyundai Rotem the delivery of K2 tanks and K808 armored vehicles, in a tender that included Turkish and Serbian competitors.
Similarly to Türkiye, these successes motivated the Korea Trade-Investment Promotion Agency (KOTRA) to organize a Korean Defense Day in 2025 and repeat it this year at FIDAE, where it also expanded its presence with more tan 30 companies, including KIA, Hyundai, Poongsan, Hancom InSpace, and SIIS. The most prominent South Korean presence, however, was Hanwha—HHI’s direct competitor—with its units Hanwha Ocean, Hanwha Systems, and Hanwha Aerospace.
Having observed HHI’s success in Peru, Hanwha is explicitly targeting Chile. The competitive logic is quasi geographical: if Peru belongs to HHI, then Chile—Peru’s regional rival in some respects—becomes the natural terrain for Hanwha to explore. The company focused on land and naval systems and announced during the exhibition a collaboration agreement between Hanwha Aerospace and INDRA, Spain’s largest defense firm and a well-established Latin American supplier, for the regional sale of the 6x6 Tigon platform integrating INDRA systems, while simultaneously partnering to develop howitzers for the Spanish Army. In the background lies Chile’s pending replacement of its MOWAG Piraña.
The Czech surge
Among the more surprising stories of FIDAE 2026 is the scale of the Czech defense industry’s presence. While the Association of the Czech Aerospace Industry (ALKP) had appeared in previous editions, this year it arrived with more than fifteen companies—roughly double the previous representation—and with official support from the Czech Ministry of Industry and Trade.
This growth is also linked to a concrete commercial success: the sale of three Omnipol L-410 NG turboprop aircraft to the Chilean specialized air services company Aerocardal, along with the announcement of a regional service center for Latin America. One of the largest Czech defense companies, STV Group, appeared at FIDAE for the first time, presenting both UAVs and conventional ammunition manufacturing capabilities.
Czech representatives emphasized the possibility of government-to-government frameworks to facilitate procurement and expressed interest in Chile’s emerging space sector, although progress in that area has so far been limited.
The American challengers and other newcomers
As the most significant and established aerospace and defense supplier in Latin America, the United States had a strong presence, with more than 70 companies participating, supported by the most familiar procurement channel for many armed forces: the Defense Security Cooperation Agency. In addition to traditional prime contractors such as Lockheed Martin, RTX, BAE Systems, L3Harris, Boeing, and Bell, the U.S. pavilion included newcomers from the “New Space” and “New Defense” ecosystem, which continue to carve out their place.
Shield AI, appearing at FIDAE for the second time, presented the V-BAT UAV—already being sold in Colombia and in discussions for sale in Mexico and Argentina—as well as other solutions such as its AI-enabled C2 system, Hivemind. Meanwhile, “New Space” companies such as Planet and Capella made a modest presence offering satellite-based ISR solutions.
Two additional noteworthy new presences at FIDAE and in the region were ST Engineering, one of Singapore’s largest companies, which presented satellite solutions for environmental monitoring, and Skyfall, the Ukrainian startup, which showcased its VAMPIRE hexacopter with combat-proven ground-attack capabilities.
China doesn’t give up in light of U.S. pressure
China’s presence at FIDAE began in 2016 and has consistently been led by the China North Industries Corporation (NORINCO), which operates in the region from Venezuela. In this edition, NORINCO emphasized drone technology, reflecting broader market trends, while also showcasing its extensive portfolio of land systems.
In addition to NORINCO, the China Aerospace Long-March International Company (ALIT), a subsidiary of the China Aerospace Science and Technology Corporation (CASC), participated by presenting UAVs and space launch solutions, likely targeting Latin America’s emerging space programs. Other Chinese companies present were satellite solutions company Star.Vision, small UAV rotorcraft manufacturer Ziyan, and electronics and ISR solutions provider Novasky Technology.
Although China’s defense industry appears highly competitive in many parts of the developing world, its penetration in Latin America has been limited and increasingly constrained by pressure from Washington and its significant leverage over the region. The Trump administration’s doctrine of hemispheric security has cast a shadow over Chinese military-commercial engagement in the Americas, and buyers are acutely aware of the complications associated with Chinese procurement in an era of heightened U.S. scrutiny.
Recurring themes and budgetary realities
Several recurring themes emerged among exhibitors, including the rise of unmanned systems, software solutions for monitoring and controlling illegal maritime traffic—a common challenge for many Latin American countries—satellite-based surveillance solutions, armored vehicles, and naval modernization, an urgent requirement for several countries in the region.
In Chile’s particular case, the 2025 approval of an ambitious National Naval Construction Plan has been drawing attention for some time. Multiple foreign companies such as Babcock, STM / Aselsan, and Hanwha presented their proposals in this regard at FIDAE. However, analyst Marcelo Masalleras, head of research at AthenaLab, Chile’s leading defense think tank, expressed caution, warning that “the budget allocated to the Strategic Defense Capabilities Fund has not been received regularly as planned, which has raised doubts about the future reliability of funding”. As is often the case in Latin America, defense needs are not aligned with budgetary realities.
FIDAE 2026 ultimately reflected a defense market in transition, shaped as much by geopolitical alignments as by industrial positioning. New entrants are taking advantage of political openings, while traditional suppliers face increasing constraints.
