68 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 43 | 2025 Introduction Cybersecurity in Taiwan is not simply a technical issue but a cornerstone of its defense strategy amid escalating geopolitical threats. Taiwan is one of the global leaders in digital transformation, which uses technology to improve governance and public service delivery. However, the island faces constant pressure from mainland China, with 2.4 million cyberattacks daily in 2024, twice the amount compared to 2023 (Secretariat, National Security Bureau, Republic of China [Taiwan], 2025). The goals of the attacks vary from acquiring sensitive information for negotiations to obtaining Taiwan’s tech industry trade secrets. Taiwan has also become a testing ground for cyber weapons that could later target other nations. In response, Taiwan has developed a strategy that combines active citizenship and digital democracy to counter cyber threats while differentiating itself from the mainland’s authoritarian digital controls. Taiwan is an essential player in global technology supply chains. Taiwan Semiconductor Manufacturing Company Limited alone produced ~90% of global logic chips in 2019 (Chiang, 2023). Taiwan’s combining technical competencies with the advanced chip manufacturing industry makes it a key actor and a prime target in global cyberspace. Since its hardware sector is already globally dominant, Taiwan has increasingly invested in software development. The cybersecurity sector expanded 11.9% from 2020 to 2021, exceeding the worldwide average, with projected revenue of US$0.8B for 2024 (International Trade Administration, 2024). Taiwan’s government also acknowledged the significance of cybersecurity. Former President Tsai Ing-Wen adopted the slogan “Cybersecurity is national security,” which marked a transition from treating cyber threats as isolated technical issues to integrating them into a coordinated defense and security strategy (Office of the President, 2023). The internet penetration rate in Taiwan, reported by the Taiwan Network Information Center, is 84.3%. Therefore, cyberattacks could immediately disrupt daily life for most citizens. Taiwan’s rapid transition toward digital governance has revealed both opportunities and vulnerabilities. The National Health Insurance system, through its integrated digital network, enabled the government to track COVID-19 patients who had had contact with Diamond Princess cruise ship passengers. By linking National Health Insurance health records with customs’ 14-day travel histories, authorities could identify contract points and quarantine at-risk individuals (Yen, 2020). Similarly, the health record database helped Taiwan establish a face mask rationing program during the global mask shortages. The civic technology community member Howard Wu created the Mask Map application, which utilized geolocation to show users which stores had masks in stock (Shibuya et al., 2022). While the virus containment strategy proved successful, it prompted concerns about privacy protection and system security. Centralizing personal health information and identity records created significant vulnerabilities to data breaches and unauthorized system access. Digital governance in Taiwan does more than improve administrative efficiency; it also reinforces democratic values. The web platform vTaiwan exemplifies this dual function as a tool for public policy consultations where civil society members engage with industry professionals in public discussion. People can submit suggestions through polls, in-person meetings, and hackathons (Hsiao et al., 2018). The civic tech organization g0v also hosts Join, a petition website where proposals that gather over 5000 signaCybersecurity as part of defense and security policy in Taiwan Dariia Tyshchenko Taiwan faces growing cybersecurity threats, particularly from China, that challenge its security and democratic institutions. Taiwan has responded by investing in cyber infrastructure, expanding legal protections, and fostering public–private collaboration. It also has positioned itself as a regional leader in digital governance. However, vulnerabilities remain, including disinformation campaigns and undersea cable risks. This article examines Taiwan’s current cybersecurity framework and proposes policy recommendations to strengthen coordination, protect critical infrastructure, and promote long-term resilience. doi:10.18275/pbe-v043-010
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