Taiwan Digital and Creative Economy Policy Roadmap Navigating AI Integration Regulatory Reform and Global Competitiveness

The Committee on Digital and Creative Industries has released its comprehensive policy recommendations for the Taiwan government, emphasizing the critical need for a modernized regulatory framework that aligns with the rapid evolution of artificial intelligence (AI), telecommunications, and the global creative economy. As Taiwan seeks to solidify its position as a regional hub for content creation and digital innovation, the Committee’s report underscores that the nation’s "Silicon Shield" must be complemented by a robust "Digital Shield" comprised of resilient infrastructure, flexible governance, and proactive copyright enforcement. While appreciating the government’s progress in digital transformation and cyber resilience, the Committee warns that legacy regulatory models designed for a previous era of broadcasting and telecommunications are increasingly ill-suited for the era of AI-native networks and borderless digital streaming.

Strategic Integration of Telecommunications and Artificial Intelligence

At the heart of Taiwan’s digital ambitions lies its telecommunications infrastructure, which the Committee identifies as the essential backbone for AI development and national digitalization. Despite the vital nature of this sector, Taiwan’s telecommunications operators face a unique set of challenges. Unlike global giants, local operators must manage smaller-scale markets while navigating significant geopolitical risks and escalating operational costs. To ensure that these providers can effectively drive enterprise AI transformation, the Committee recommends a shift toward continuous incentives and a reduction in regulatory burdens.

The government’s "Forward-looking Infrastructure Development Program," a multi-billion dollar initiative launched in 2017 to modernize Taiwan’s public works and digital systems, is scheduled to expire in 2025. The Committee urges the government to maintain and extend subsidies for mobile communication quality, particularly in rural and underserved areas. Without continued support, the digital divide could widen, hindering the "Smart Nation 2.0" strategy. Furthermore, as the industry transitions toward 6G, which is envisioned as an AI-native network architecture, the planning of spectrum resources becomes a matter of national competitiveness. The Committee recommends the early refarming of the 700 MHz, 900 MHz, and 1800 MHz frequency bands, which are set to expire in 2030, and the release of new Sub-1 GHz bands to ensure Taiwan remains in lockstep with international best practices.

Chronology of Taiwan’s Digital Policy Evolution

The current policy landscape is the result of a decade-long transition toward a digital-first economy. In 2017, the launch of the Forward-looking Infrastructure Development Program signaled a massive state commitment to digital resilience. This was followed by the implementation of the Telecommunications Management Act in 2020, which aimed to decouple services from underlying infrastructure to encourage competition. In 2022, the establishment of the Ministry of Digital Affairs (MODA) marked a pivotal moment in centralizing digital governance.

However, the Committee notes that the regulatory environment has not always kept pace with the speed of private sector innovation. For instance, the transition from 4G to 5G involved massive capital expenditure from operators—estimated at over NT$140 billion in license fees alone—while they were simultaneously tasked with maintaining legacy 3G networks and complying with strict price controls. The Committee argues that the next phase of policy (2025–2030) must prioritize "light-touch" regulation to allow these operators the financial flexibility to invest in the 6G and AI-driven future.

Enhancing Digital Resilience and Telemedicine

Digital resilience has become a paramount concern for Taiwan, particularly regarding the security and stability of submarine cables. These cables are the primary conduits for Taiwan’s international connectivity and are increasingly vulnerable to both natural disasters and geopolitical interference. The Committee calls for a more streamlined regulatory environment for submarine cable maintenance and the strengthening of terrestrial backup networks.

Simultaneously, the Committee highlights 5G’s potential to revolutionize healthcare through telemedicine. Despite Taiwan’s world-class medical system, regulatory constraints have limited the widespread adoption of remote clinical services. By leveraging 5G’s low latency and high bandwidth, Taiwan could narrow the healthcare gap between urban centers and remote mountainous or island regions. The recommendations suggest that the Ministry of Health and Welfare should relax current restrictions on telemedicine eligibility, allowing for a broader range of consultations and treatments to be conducted digitally, thereby fostering a new sector of the digital economy.

Reforming Media and Satellite Broadcasting Regulations

As the consumption of media shifts from traditional cable and satellite television to on-demand digital platforms, the Committee argues that the National Communications Commission (NCC) must reform its "stringent and outdated" regulatory landscape. Traditional channel operators are currently at a disadvantage, burdened by licensing requirements and content restrictions that do not apply to their digital competitors.

The Committee advocates for a "light-touch" approach that treats all content providers equally. This includes simplifying the renewal process for satellite broadcasting licenses and moving away from prescriptive programming requirements. By fostering a more open and predictable policy environment, Taiwan can attract more investment into local content production, which is essential for maintaining its cultural influence and "soft power" in the Mandarin-speaking world and beyond.

Fostering the Growth of the Over-the-Top (OTT) Sector

Taiwan’s Over-the-Top (OTT) TV sector has emerged as a key driver of the creative economy. International streaming platforms are not merely distributors; they have become major investors in Taiwanese original content. Series such as Light the Night and Copycat Killer have demonstrated that local productions can achieve global success when supported by international distribution networks.

The Committee expresses concern that the government might seek to extend legacy broadcasting frameworks to these new services. OTT platforms operate on fundamentally different business models—specifically Professionally Generated Content (PGC) and Subscription Video on Demand (SVOD)—compared to traditional linear TV. The Committee argues that additional prescriptive regulations are unnecessary, as most platforms already implement robust self-regulatory mechanisms, such as parental controls and content ratings. Imposing duplicative classification systems or intrusive compliance requirements could deter international investment and weaken Taiwan’s position in the global content supply chain.

Strengthening Copyright Enforcement and Music Licensing

To sustain a healthy creative ecosystem, effective copyright protection is indispensable. While Taiwan has a solid legal framework, online piracy remains a persistent threat. The Committee points out that criminal cases against piracy operations can take years to resolve, during which time the infringing services often continue to operate under different domains.

The Committee recommends the adoption of more streamlined administrative enforcement mechanisms, such as centralized, one-stop site-blocking processes. Drawing on models from South Korea, Malaysia, and Indonesia, Taiwan could significantly improve its response time to illegal streaming. Furthermore, the proliferation of Illicit Streaming Devices (ISDs) poses not only a threat to intellectual property but also to consumer cybersecurity, as these devices are often pre-loaded with malware.

Regarding the music industry, the Committee calls for greater transparency in the way Collective Management Organizations (CMOs) set royalty rates. Currently, the lack of structured dialogue between CMOs and digital service providers often leads to protracted disputes. By adopting international best practices from markets like Japan and South Korea—where rate-setting methodologies are disclosed in advance and subject to stakeholder input—Taiwan can create a more balanced and predictable licensing environment.

Data Economy and the Personal Data Protection Act

The Committee recognizes the importance of personal data protection but warns that an overly rigid implementation of the Personal Data Protection Act could stifle AI development. AI models require vast datasets to train and function effectively. If data de-identification and "sandbox" mechanisms are too restrictive, Taiwan risks falling behind in the global AI race.

The recommendation is for the newly established Personal Data Protection Commission to engage in continuous dialogue with industry players. The goal is to design a system that protects individual privacy while facilitating the flow of data necessary for a thriving data economy. This balance is crucial for the successful implementation of the "Smart Nation 2.0" strategy, which relies on the seamless integration of data across various sectors of society.

Conclusion: A Forward-Looking Policy Approach

The Committee concludes that Taiwan stands at a crossroads. To maintain its leadership in digital development and expand its cultural soft power, the government must move away from reactive, legacy-based regulation toward a proactive, risk-based, and flexible governance model. By strengthening telecommunications resilience, fostering a competitive media landscape, and enforcing intellectual property rights with modern tools, Taiwan can ensure its digital and creative industries remain competitive on the global stage.

The success of these initiatives will depend on meaningful stakeholder engagement and a clear understanding of how emerging technologies operate. As the Committee notes, a policy environment that is open, predictable, and innovation-friendly is the most effective way to attract investment and sustain long-term economic growth in the digital age. The recommendations provided serve as a blueprint for a future where Taiwan is not just a hardware manufacturing powerhouse, but also a leader in the global digital and creative economy.