Ammar Sabilarrohman
The Committee on Technology Policy has issued a comprehensive set of recommendations urging the Taiwan government to solidify its position as a global technological leader by refining its regulatory frameworks and deepening international collaborations. While commending the recent launch of the “Ten Major AI Infrastructure Projects” and the introduction of the AI Basic Act, the Committee emphasizes that Taiwan’s long-term competitiveness depends on moving beyond hardware dominance toward a robust, resilience-by-design digital ecosystem. These recommendations arrive at a critical juncture as Taiwan navigates a complex geopolitical landscape, rapid advancements in artificial intelligence (AI), and the looming "quantum advantage" inflection point. By adopting risk-based regulatory approaches and fostering public-private partnerships, the Committee argues that Taiwan can ensure its digital foundations remain secure, innovative, and aligned with global standards such as the EU’s General Data Protection Regulation (GDPR).
Strengthening National Digital Resilience Through Design
A central pillar of the Committee’s report is the transition from traditional data backup to a comprehensive "resilience-by-design" architecture. While Taiwan has made significant strides in digitalizing its public services and securing civilian data, the Committee notes that simple data redundancy is insufficient to withstand large-scale cyber incidents or geopolitical shocks. Resilience-by-design requires that continuity, recoverability, and adaptability be embedded into the core architecture of IT systems from their inception. This is particularly vital for critical sectors such as financial services, healthcare, and national security operations, where even minor disruptions can have cascading effects on public trust and economic stability.
To achieve this, the Committee recommends a coordinated cross-ministerial model. Currently, digital responsibilities are often fragmented across different government bodies. A unified framework would ensure that resilience planning for interbank settlements, social welfare administration, and hospital information systems is synchronized. Furthermore, the Committee highlights the importance of operational exercises. Rather than relying on theoretical documentation, the government is encouraged to conduct joint drills and tabletop simulations with trusted international technology partners. These exercises are designed to identify hidden dependencies and clarify decision-making authorities, ensuring that Taiwan’s "digital shield" is functional in real-world crisis scenarios.
Modernizing Privacy and Data Protection Frameworks
As the Preparatory Office of the Personal Data Protection Commission (PDPC) prepares for the 2026 implementation of amendments to the Personal Data Protection Act (PDPA), the Committee has called for a shift toward risk-based regulations. The current draft amendments have drawn concern for introducing rigid mandates and quantitative thresholds—such as defining "high-risk" entities based solely on the volume of data entries (e.g., 10,000 records)—which may increase compliance costs without effectively enhancing privacy.
The Committee suggests several key revisions to align Taiwan with international best practices. First, it recommends a formal definition for Business Contact Information (BCI), such as professional email addresses and titles, to be excluded from stringent personal data protections to facilitate smoother commercial operations. Second, it proposes a "harm threshold" for breach notifications. Under this model, organizations would only be required to notify authorities if an incident poses a genuine risk to an individual’s rights. The Committee also advocates for a 72-hour notification window that begins only once a breach is reasonably confirmed, ensuring that reports are accurate and actionable rather than premature.
Furthermore, the Committee emphasizes the need for technology-neutral security measures. Instead of prescribing specific password complexity rules or fixed record-retention periods that may become obsolete, regulations should allow for adaptive controls like multi-factor authentication (MFA) and encryption. This approach ensures that as technology evolves, the legal framework remains relevant and effective.
Reforming ICT Procurement and Cybersecurity Management
Taiwan’s approach to Information and Communications Technology (ICT) procurement is also under scrutiny. While the 2025 amendments to the Cybersecurity Management Act (CSMA) and new regulations from the Ministry of Digital Affairs (MODA) have strengthened the nation’s cyber posture, inconsistencies remain in how these rules are applied during public tendering. The Committee points out that many government agencies still use broad Country-of-Origin (COO) restrictions in their bidding templates, often excluding products based on where they were manufactured rather than their actual security profile.
In an era of globally distributed production and software-defined hardware, the Committee argues that manufacturing location is an unreliable indicator of risk. A component manufactured in one country may run code developed in another and be managed by a third. Therefore, the Committee urges the Public Construction Commission (PCC) to harmonize its model contracts with MODA’s entity-based framework. This would shift the focus toward banning specific "harmful" brands or entities rather than applying blanket bans on products from entire geographic regions. By focusing on technical risk profiles and adhering to Good Regulatory Practices (GRP)—including a 60-day public consultation period for new rules—Taiwan can create a more predictable and secure procurement environment.
The Quantum Frontier: Preparedness and Ecosystem Building
Perhaps the most forward-looking aspect of the recommendations concerns quantum computing. With some experts predicting that quantum advantage—the point where quantum computers outperform classical ones—could be reached as early as late 2025, the Committee welcomed Taiwan’s Phase II Five-Year National Quantum Strategy (2027-2031). While Taiwan’s semiconductor prowess provides a natural advantage in quantum hardware and manufacturing, the Committee warns that hardware alone is not enough.
To build a competitive quantum ecosystem, Taiwan must accelerate research into software, algorithms, and application development. The Committee suggests that international collaboration should be a core pillar of the Phase II strategy. By engaging with global partners, Taiwan can access diverse talent pools and ensure its quantum networking capabilities are interoperable with international standards. Additionally, the government is encouraged to provide incentives for domestic startups and industry players to invest in quantum-enabled solutions, ensuring that the benefits of this technology are felt across the local economy.
Crucially, the report addresses the systemic risk quantum computing poses to current encryption standards. The Committee urges the creation of a unified, cross-agency task force to oversee a "quantum-safe" migration. This involves "no-regret" actions, such as identifying current cryptographic assets, followed by a phased transition to quantum-resistant cryptography. This strategic transformation is framed not just as a technical update, but as a necessary step to maintain digital trust in the coming decade.
Advancing AI Policy through Public-Private Collaboration
Finally, the Committee commended the Ministry of Digital Affairs and the National Development Council for their openness in developing the AI Basic Act. As the government moves toward implementing risk classification frameworks and sector-specific guidelines for generative AI, continued dialogue with the private sector is deemed essential. The Committee notes that technology providers can offer unique insights into international governance trends and the practicalities of AI risk assessment.
By fostering an environment where innovation and responsible governance go hand-in-hand, Taiwan can set a benchmark for AI policy in Asia. The Committee’s findings suggest that if Taiwan can successfully integrate these recommendations—balancing security with flexibility and domestic growth with international alignment—it will not only safeguard its national interests but also reinforce its role as an indispensable node in the global digital economy.
Chronology of Taiwan’s Tech Policy Evolution
The recommendations provided by the Committee sit within a broader timeline of Taiwan’s recent legislative and strategic efforts:
- 2024: Initial drafting and public consultation for the AI Basic Act begin, focusing on ethical AI and data sovereignty.
- 2025 (Early): The government announces the “Ten Major AI Infrastructure Projects” and passes amendments to the Cybersecurity Management Act.
- 2025 (Mid): The Committee issues its 2025 White Paper, highlighting the need for "crypto-agility" and resilience-by-design.
- 2026 (Planned): Expected implementation of the updated Personal Data Protection Act (PDPA) regulations under the PDPC.
- 2027: Official commencement of the Phase II Five-Year National Quantum Strategy, shifting focus toward software and international ecosystem integration.
Analysis of Implications
The Committee’s emphasis on "risk-based" rather than "prescriptive" regulation reflects a global shift in tech governance. For Taiwan, the implications of these suggestions are twofold. Economically, aligning with GDPR-like standards and removing arbitrary procurement barriers makes Taiwan a more attractive destination for foreign investment and high-tech partnerships. It reduces the "compliance tax" on international firms operating within the island.
Security-wise, the shift toward resilience-by-design and quantum-safe preparedness acknowledges that Taiwan’s status as a high-tech hub also makes it a high-value target. By moving away from a "fortress" mentality (broad COO bans) toward a "resilience" mentality (entity-based risk and operational drills), Taiwan builds a more sophisticated defense that is harder to bypass through supply chain vulnerabilities. As the 2025-2031 period unfolds, the success of these policies will likely determine whether Taiwan remains a dominant force in the next generation of computing.
Lina Hope
Lina Irawan
