Rifan Muazin
The Committee has officially commended the Taiwan government for its proactive efforts in advancing the nation’s technology policy agenda, highlighting the 2025 announcement of the Ten Major AI Infrastructure Projects as a pivotal moment for Taiwan’s technological leadership. In a comprehensive set of recommendations aimed at strengthening the island’s long-term competitiveness, the Committee underscored that the resilience of Taiwan’s digital foundations is now a core national imperative, central to maintaining security, economic stability, and public trust. The recent introduction of the AI Basic Act and the structured national investment in emerging technologies, such as quantum computing, are seen as essential foundations for a future-ready economy. However, the Committee also emphasized that to translate these high-level ambitions into durable outcomes, Taiwan must prioritize international collaboration, risk-based regulatory frameworks, and deep public-private partnerships.
A New Era of Digital Policy: Timeline and Strategic Context
Taiwan’s technology landscape has undergone a rapid transformation over the past three years. Following the global surge in generative AI and the increasing complexity of cross-strait geopolitical dynamics, the government has accelerated its legislative and infrastructural timelines. In 2024, the focus remained on baseline digitalization. By early 2025, the government shifted toward structural resilience, launching the Ten Major AI Infrastructure Projects and drafting the AI Basic Act. These moves were designed to position Taiwan not just as a hardware manufacturer, but as a global hub for responsible AI deployment and secure digital services.
Looking ahead, the timeline extends into the next decade. The government’s Phase II Five-Year National Quantum Strategy is set to run from 2027 to 2031, following a period of intense research and development. Concurrently, the Preparatory Office of the Personal Data Protection Commission (PDPC) is working toward 2026 draft amendments to the Personal Data Protection Act (PDPA), aiming to align Taiwan’s privacy standards with international benchmarks like the EU’s General Data Protection Regulation (GDPR). This evolution reflects a growing recognition that Taiwan’s "Silicon Shield" must be complemented by a "Digital Shield"—a robust, resilient, and legally sophisticated digital ecosystem.
Building Resilience-by-Design Across Critical Sectors
A primary recommendation from the Committee is the adoption of a "resilience-by-design" approach for national digital infrastructure. While Taiwan has successfully implemented data backup mechanisms for essential public services, the Committee argues that backup alone is insufficient to withstand extreme scenarios, such as large-scale cyber incidents or prolonged geopolitical shocks. Resilience-by-design requires that continuity, recoverability, and adaptability be embedded as core design principles from the very beginning of a system’s lifecycle.
This is particularly critical for systems supporting government administration, financial services, and healthcare. For example, in the financial sector, where interbank settlements and digital transactions underpin economic stability, even a few hours of downtime can have cascading effects on public trust. The Committee recommends a coordinated public-private partnership model to modernize these IT systems. This includes moving beyond incremental upgrades to a systematic architecture that ensures core functions remain operational during a crisis. To validate these designs, the Committee suggests that the government initiate structured dialogues with trusted global technology partners to design realistic stress scenarios, tabletop exercises, and cross-sector simulations. These "joint drills" are essential for identifying hidden dependencies and ensuring that decision-making authorities are clear before a crisis occurs.
Modernizing the Privacy Framework and Regulatory Alignment
As Taiwan seeks to integrate more deeply with global digital markets, the modernization of its privacy framework has become a point of significant discussion. The Committee has addressed the 2026 draft amendments to the Regulations Regarding the Security Maintenance and Administration of Personal Information Files, urging the government to shift from rigid, quantitative mandates to a more flexible, risk-based approach.
One specific suggestion is the formal definition and exclusion of Business Contact Information (BCI) from the strictest personal data protections. By aligning with global trends that treat professional contact details (names, titles, and business emails) with streamlined requirements, Taiwan can facilitate more efficient commercial operations without compromising individual privacy. Furthermore, the Committee has called for a "harm threshold" for data breach notifications. Under this proposal, organizations would only be required to notify authorities and individuals if an incident poses a real risk of harm to rights and freedoms, preventing "notification fatigue" and ensuring that regulators focus on the most serious threats.
The Committee also emphasized the need for technology neutrality. Rather than mandating specific technical rules—such as password complexity or five-year record retention—which may become obsolete as technology evolves, regulations should focus on outcomes. This allows organizations to adopt modern security measures like multi-factor authentication (MFA) and adaptive encryption as they become available. To ensure a smooth transition, the Committee recommends a minimum 12-month implementation period following any new regulations to allow businesses to update their technical systems and train personnel.
Harmonizing ICT Procurement with Cybersecurity Realities
Cybersecurity remains at the forefront of Taiwan’s national security strategy, but the Committee noted inconsistencies in how information and communications technology (ICT) products are procured. While the Ministry of Digital Affairs (MODA) has adopted a risk-based approach through the Cybersecurity Management Act (CSMA), some government agencies continue to apply broad country-of-origin (COO) restrictions in their tendering processes.
The Committee argues that in an era of globally distributed production and software-defined hardware, a product’s manufacturing location is an increasingly unreliable indicator of its security risk. Instead, the focus should be on who controls the code, the data flows, and the updates. The Committee recommends that the Public Construction Commission (PCC) harmonize its procurement templates with MODA’s entity-based framework. This would involve moving away from blanket "Made in China" bans toward more specific bans on untrusted brands and entities, regardless of where their components are assembled. This shift would reduce uncertainty for procuring agencies and ensure that Taiwan’s critical infrastructure is protected by the most advanced and secure technology available, rather than being limited by geographic manufacturing biases.
The Quantum Frontier: Strategy for 2027-2031
Quantum computing represents the next major inflection point in global technology. With "quantum advantage"—the point where quantum systems outperform classical computers—potentially arriving as early as this year, the Committee welcomed the Phase II Five-Year National Quantum Strategy. However, the recommendations suggest that Taiwan must look beyond hardware and semiconductor manufacturing to capture the full value of the quantum era.
The Committee advocates for a stronger focus on quantum software, algorithms, and application development. While Taiwan’s hardware strengths provide a solid base, the practical utility of quantum computing will be determined by how these systems are applied in fields like materials science, cryptography, and financial modeling. International collaboration is viewed as a core pillar of this strategy. By incentivizing global partners to establish quantum ecosystems linked to Taiwan, the government can accelerate talent development and ensure that its digital ecosystem remains interoperable with global standards.
A critical component of this transition is "quantum-safe" preparedness. The Committee urged the creation of a unified, cross-agency task force to oversee the migration to quantum-resistant cryptography. This "crypto-agility" is essential to protect Taiwan’s digital assets from future quantum-enabled cyber threats. The migration should follow a "no-regret" model, starting with the discovery of cryptographic assets and moving toward pilot programs for the most critical national security and financial systems.
Analysis: Implications for Taiwan’s Strategic Position
The recommendations provided by the Committee highlight a shift in how Taiwan views its role in the global technology ecosystem. For decades, Taiwan’s primary contribution was as a manufacturer. In the coming years, the island aims to redefine itself as a "Trusted Partner" in the development of responsible AI and secure digital infrastructure.
By adopting risk-based regulations and resilience-by-design, Taiwan can better navigate the "complexity-security" paradox—where more advanced systems often introduce more points of failure. The emphasis on international alignment is also a strategic move; by adopting standards similar to the EU’s GDPR or the US’s cybersecurity frameworks, Taiwan makes itself a more attractive and reliable partner for Western democracies and global corporations.
Furthermore, the focus on public-private collaboration ensures that policy does not outpace technical reality. As MODA and the National Development Council continue to refine the AI Basic Act and other sector-specific guidelines, the inclusion of industry insights will be vital. This collaborative approach not only fosters innovation but also builds a regulatory environment that is predictable, transparent, and capable of supporting Taiwan’s ambition to remain a high-tech powerhouse in an increasingly volatile world.
In summary, the path forward for Taiwan involves a sophisticated blending of domestic policy modernization and deep international engagement. The Committee’s suggestions provide a roadmap for a digital economy that is not only innovative but also inherently resilient, ensuring that Taiwan remains a central node in the global technology value chain for decades to come.
Lina Irawan
Basiran
