Pevita Pearce
The Committee on Technology Policy has officially commended the Taiwan government for its proactive strides in advancing a comprehensive technological agenda designed to secure the island’s long-term competitiveness. With the 2025 announcement of the “Ten Major AI Infrastructure Projects,” the government has signaled a transition from being a hardware-centric economy to becoming a global leader in AI-driven innovation and responsible development. This shift is anchored by the introduction of the AI Basic Act, which serves as a regulatory cornerstone for ethical AI deployment, and a structured national investment strategy into emerging fields like quantum computing. Central to these developments is the concept of digital resilience, which the Committee identifies as a core national imperative essential for maintaining security, economic stability, and public trust in an increasingly volatile global landscape.
To ensure these ambitious policies translate into tangible outcomes, the Committee emphasizes that international collaboration and public-private partnerships must remain at the forefront. Building a “resilience-by-design” digital infrastructure, modernizing privacy frameworks, and fostering a robust quantum ecosystem require deep engagement with trusted global partners and industry experts. By adopting risk-based regulatory approaches rather than rigid, technology-specific mandates, Taiwan can better navigate technological complexities and ensure that its policy implementation remains consistent with its strategic intent.
A Chronology of Taiwan’s Strategic Tech Evolution (2024–2027)
The trajectory of Taiwan’s technology policy reveals a phased approach to digital transformation. In late 2024 and early 2025, the focus was primarily on foundational legislation and infrastructure. The launch of the AI Basic Act provided the necessary legal framework to govern the use of automated systems across both public and private sectors. Simultaneously, the “Ten Major AI Infrastructure Projects” were initiated to provide the computational power and data environments required for large-scale AI modeling.
By 2026, the focus shifted toward data governance and privacy, marked by the Preparatory Office of the Personal Data Protection Commission (PDPC) drafting significant amendments to the Personal Data Protection Act (PDPA). These amendments aimed to bring Taiwan’s data security standards closer to international benchmarks like the EU’s General Data Protection Regulation (GDPR).
Looking forward to 2027, Taiwan is set to enter Phase II of its Five-Year National Quantum Strategy. This period, spanning 2027 to 2031, is designed to move beyond theoretical research and into the practical application of quantum technologies, focusing on hardware integration with high-performance computing (HPC) and the development of quantum-safe cryptographic standards. This timeline reflects a deliberate effort to synchronize domestic policy with the rapid pace of global technological breakthroughs.
Establishing Resilience-by-Design in Critical Infrastructure
A primary recommendation from the Committee involves the adoption of a “resilience-by-design” approach for national digital infrastructure. This concept mandates that continuity, recoverability, and adaptability are embedded into the architecture of IT systems from the outset, rather than being treated as afterthoughts. This is particularly critical for systems supporting government administration, financial services, and healthcare delivery.
The Committee notes that while Taiwan has made significant progress in digitalization, the increasing interdependency of digital systems creates systemic vulnerabilities. A disruption in one sector, such as a large-scale cyber incident or a geopolitical shock, could have a cascading effect on national security and social welfare. While the government has successfully implemented data backup mechanisms, the Committee warns that data backup alone is insufficient. True resilience requires the ability of core systems to remain operational or recover near-instantaneously during prolonged disruptions.
To achieve this, a coordinated public-private partnership model is recommended. This includes the initiation of structured dialogues with technology partners who possess international experience in large-scale continuity planning. Furthermore, the Committee advocates for regular operational exercises, including joint drills and cross-sector simulations, to identify hidden dependencies and clarify decision-making authorities before a crisis occurs.
Modernizing the Privacy Framework and PDPA Alignment
As Taiwan seeks to integrate more deeply into the global digital economy, the modernization of its privacy framework is essential. The 2026 draft amendments to the security maintenance regulations for personal information represent a positive step, yet the Committee suggests further refinements to avoid rigid mandates that could stifle innovation.
Key among these suggestions is the formal definition of Business Contact Information (BCI). By excluding professional contact details—such as names and business emails used solely for professional purposes—from the strictest personal data protection requirements, Taiwan can facilitate more efficient commercial operations. This alignment with global trends would reduce the compliance burden on international firms operating within the region.
Additionally, the Committee supports a shift toward a risk-based “harm threshold” for data breach notifications. Under this model, organizations would be required to notify authorities only when an incident poses a real risk to individuals’ rights and freedoms. The proposed 72-hour reporting window should ideally commence from the moment a breach is reasonably confirmed, ensuring that notifications are accurate and actionable rather than premature. By focusing on the nature of processing activities—such as sensitive data handling or large-scale profiling—rather than simple quantitative metrics like "data volume," the PDPC can create a more nuanced and effective regulatory environment.
Harmonizing Cybersecurity Management and ICT Procurement
Cybersecurity remains a top priority, but the Committee highlights a disconnect between the Cybersecurity Management Act (CSMA) and current procurement practices. While the Ministry of Digital Affairs (MODA) has moved toward a risk-based approach for reviewing products harmful to national security, the Public Construction Commission (PCC) continues to use tendering templates that rely on broad “Country of Origin” (COO) restrictions.
In an era of software-defined hardware and globalized supply chains, the location of manufacture is often an unreliable indicator of risk. A product manufactured in one country may be controlled by code and updates from another. Therefore, the Committee recommends that the PCC harmonize its model contracts with MODA’s entity-based framework. This would mean focusing on specific untrusted brands or entities rather than applying blanket bans on all products from a specific region. Such a shift would reduce uncertainty for procuring agencies and ensure that Taiwan’s cybersecurity defenses are based on technical risk profiles rather than geopolitical generalities.
Fostering the Quantum Ecosystem and Quantum-Safe Transition
Quantum computing is approaching a critical "inflection point," where quantum systems may soon outperform classical computers on specific high-value tasks. The Committee welcomes the Phase II Five-Year National Quantum Strategy but urges a broader focus beyond hardware. For Taiwan to be truly competitive, it must develop a robust ecosystem that includes software, algorithms, and application-specific use cases.
International collaboration is viewed as a vital pillar of this strategy. Because quantum networking and platform interconnection are inherently global, Taiwan must align with international standards and certification regimes to ensure interoperability. The Committee also recommends incentivizing international partners to establish quantum-linked ecosystems in Taiwan, fostering talent development through skill transfers and joint research.
Crucially, the rise of quantum computing poses a systemic risk to existing encryption standards. To mitigate this, the Committee suggests the creation of a unified, cross-agency task force to oversee a national "quantum-safe" transition. This would involve "crypto-agility"—the ability of systems to switch between cryptographic standards as new threats emerge. The migration should follow a "no-regret" model, starting with the discovery of cryptographic assets and moving toward controlled pilots for the most critical national security and financial systems.
The Path Forward: AI Governance and Public-Private Synergy
The development of the AI Basic Act and its associated risk classification framework has benefited significantly from industry input. However, many supporting measures, including sector-specific guidelines and risk assessment tools, remain under deliberation. The Committee urges the Executive Yuan and MODA to maintain a continuous loop of public-private collaboration.
By gathering insights from technology providers, the government can ensure that its AI governance remains flexible enough to accommodate rapid technological shifts while maintaining high standards of responsibility. This collaborative approach is seen as the best way to drive innovation and ensure that Taiwan’s government agencies lead by example in the adoption of generative AI and other transformative technologies.
In conclusion, the Committee’s review underscores that Taiwan’s path to technological leadership depends on a transition from reactive security to proactive, design-led resilience. By aligning domestic regulations with global standards and fostering a collaborative environment for emerging technologies like AI and quantum computing, Taiwan can solidify its position as a trusted and indispensable node in the global digital economy. The integration of these strategies will not only protect national security but also provide the stable foundation necessary for continued economic prosperity and public confidence in the digital age.
Asro
Lina Irawan
