Taiwan - Country Commercial Guide
Information and Telecommunications Technology

Taiwan is a well-known ICT manufacturing hub due to its industry base, robust semiconductor manufacturing clusters, & advanced manufacturing capacity.     

Last published date: 2020-09-25


Taiwan is a well-known ICT manufacturing hub due to its strong ICT industry base, robust semiconductor manufacturing clusters, and advanced manufacturing capacity. These advantages have enabled it to rapidly develop many companies that offer advanced ICT-related products and services. Many Taiwan companies provide Original Design Manufacturer services to U.S. ICT suppliers. Others have established strong supply chains with U.S. suppliers as intermediaries, allowing their businesses to expand throughout Southeast Asia.

The Taiwan authorities have identified cloud and mobile computing as the most promising sectors in Taiwan’s computer software and service industries. Strong market demand for network services is driven by the rising popularity of online services such as shopping, music & video entertainment, video conferencing, and gaming. Many U.S. content providers and platform developers work with domestic service providers to localize their product offerings for the Taiwan market.

Due to fierce international competition and the move to teleworking resulting from the Covid-19 pandemic, the cybersecurity of ICT products has become one of the biggest concerns for buyers.

Leading Sub-Sectors

  • 5G
  • Artificial Intelligence (AI)
  • Audio production equipment for broadcast and television
  • Augmented Reality (AR)
  • Big Data
  • Broadcasting hardware equipment
  • Business application software
  • Business intelligence-related applications
  • Cybersecurity software
  • Cloud computing security software
  • Secure Cloud Connectivity
  • Data Leakage Prevention (DLP)
  • Identity and Access Management (IAM)
  • Information security solutions
  • Information systems integration and consolidation solutions
  • Mobile computing
  • Secure Content and Threat Management (SCTM)
  • Security and Vulnerability Management software (SVM)
  • Storage solutions
  • System and network management software
  • Virtual Reality (VR)


Cybersecurity, Software, and Computer Services

Taiwan’s cybersecurity market is estimated to be worth about $1.6 billion. According to the Industrial Technology Research Institute, nearly 80 percent of global network security hardware equipment is produced in Taiwan. Software and large-scale security solutions are mostly purchased from foreign suppliers and after-sales service is provided by local system integration vendors. Israeli software suppliers are the main competitors to U.S. software suppliers in the Taiwan market. A $46.8 million annual special budget allocation to upgrade the Taiwan central and local authorities’ cybersecurity infrastructure and management increased awareness about the need to spend on cybersecurity in both public and private organizations.

Local demand for cybersecurity has primarily focused on Internet Security, and many local enterprises have also embraced the concepts in the U.S. National Institute of Standards and Technology Cybersecurity Framework: to identify, protect, detect, respond, and recover from cyber attacks. In 2020, financial services was the leading Taiwan demand sector for cybersecurity solutions. The second largest sector was the Taiwan authorities, including educational institutions. Health care was the third largest sector. Starting in 2020, all hospitals will be required to have their own Chief Information Security Officer, which will result in an increase in cybersecurity spending.

The Taiwan authorities are also concerned about cyber attacks from China. According to the Taiwan National Security Council, U.S. software companies are welcome to participate in public tenders. For tenders from Taiwan’s National Security Council, National Security Bureau and the Ministry of National Defense, all the software/hardware, including parts, cannot be sourced from China. The Taiwan Cyber Security Management Act (the Act) went into effect in January 2019. Central and local authorities, public organizations, and critical infrastructure providers are regulated by the Act. Along with the Act, a special budget of NT$1.4 billion ($46.8 million) per year (from 2017–2020) is available to assist both central and local authorities improve their cybersecurity infrastructure and management. More broadly, the Act has raised awareness of the need for manufacturers to invest in additional cybersecurity tools and attract foreign technology firms to Taiwan.

In order to promote U.S. cybersecurity companies in Taiwan, CS Taiwan led a delegation of representatives from the Taiwan authorities, critical infrastructure providers, and financial institutions to the RSA Conference in San Francisco, CA, in March 2019 and February 2020. CS Taiwan also regularly hosts cybersecurity events for U.S. companies to promote themselves.


Taiwan imports about 80 percent of its telecommunications/broadcasting equipment. Over 50 percent of imported telecommunications equipment comes from China, primarily originating from Original Equipment Manufacturing and Original Design Manufacturing factories. Taiwan’s broadcasting equipment market is following a Japan-led trend by moving from 4K to 8K resolution. On June 13, 2019, the Executive Yuan’s Board of Science and Technology announced the 5G Action Plan, which will invest nearly $650 million in 5G- and AI-related development between 2019 and 2022. Until 5G is widely adopted, U.S. broadcasting and equipment suppliers that produce 4K-related products and services will have a good market in Taiwan. The United States enjoys an approximately 10 percent market share of Taiwan’s imported telecommunications equipment.

Internet of Things (IoT)

Taiwan’s strong ICT manufacturing sector; more than 80 percent national internet usage rate; and respect for intellectual property rights, and privacy make Taiwan companies attractive partners for U.S. companies interested in pursuing IoT sub-sector opportunities. Furthermore, Taiwan companies often seek partnerships with U.S. companies when expanding beyond Taiwan.

The “Forward-Looking Infrastructure Development Program” is Taiwan’s most important program promoting IoT development. The 2017-2020 budget allocated $13.9 billion to fund development projects in green energy, digital infrastructure, railway technology, and protection of the aquatic environment. Under this program, smart city development throughout Taiwan has seen localities implement IoT innovations including smart governance, smart transport, and smart healthcare.

Web Resources

Trade Shows

CS Taipei will lead several delegations of local Taiwan importers to ICT-related trade shows in the United States for matchmaking opportunities with U.S. companies:

In 2021, the following ICT-related local trade shows will be held in Taipei, Taiwan:

Relevant Authorities

U.S. firms interested in learning more about the ICT and Telecommunications market and seeking to expand their export opportunities to Taiwan are encouraged to contact CS Taiwan Commercial Specialist Rita Chen at Rita.Chen@trade.gov or visit our website.