Overview 

Taiwan is renowned for its advanced technology industry, with a strong emphasis on research and development, manufacturing, and innovation. Taiwan companies such as Foxconn, TSMC, and HTC have gained global recognition for their contributions to the Information and Communications Technology (ICT) sector. Taiwan’s ICT industry was instrumental in the launch of Rakuten Mobile’s Open Radio Access Network (RAN) service in Japan in 2019, as many of the core suppliers are Taiwanese telecom hardware manufacturers. Taiwan industry leaders are following the same pattern to break into the broader telecom supplier market dominated by European suppliers and develop their own Open RAN applications.  

The United States and Taiwan launched the U.S.-Taiwan Technology Trade and Investment Collaboration (TTIC) in 2021 to help secure resilient supply chains in five key sectors: 5G, cybersecurity, semiconductors, renewable energy, and electric vehicles. This initiative seeks to strengthen the collaboration between the U.S. and Taiwan. 

The Taiwan authorities are also beginning to embrace new Low Earth Orbit (LEO) satellite communications technologies to improve the resilience of island’s communications infrastructure, particularly given concerns about the resilience of submarine communication cables. Taiwan’s National Science and Technology Council (NSTC) and Ministry of Digital Affairs (MODA) are the main authorities driving policies to advance telecommunications, information, cybersecurity, Internet, and broadcasting to accelerate the digitalization of Taiwan’s local industries.  

Leading Sub-Sectors 

• 5G, Beyond 5G (B5G) 
• 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) 
• Internet of Things (IoT) 
• Information security solutions 
• Information systems integration and consolidation solutions 
• Metaverse 
• Mobile computing 
• Secure content and threat management (SCTM) 
• Security and vulnerability management software (SVM) 
• Storage solutions 
• System and network management software 
• Virtual reality (VR) 
• Zero Trust 

Low Earth Orbit (LEO) telecommunications 

• Geomatic Analysis 
• Launch Service Provider/Broker 
• Launcher – Metal Components 
• Launcher – Rocket Development  
• Meteorology 
• Satellite Image Applications 
• TV Broadcast 

Opportunities 

Open RAN Services 

There is demand for U.S. telecom software companies to form new joint solutions for 5G with Taiwan telecom hardware suppliers. Next-Generation networks, such as 5G, are becoming software-defined, virtualized systems with cloud-based architectures. Taiwan hardware manufacturers are seeking to collaborate with international partners to develop new telecommunications applications that could be sold in Taiwan and eventually be exported to other markets.  

In 2022, the National Development Council (NDC) established its first 5G testing field to encourage local ICT companies to meet international standards and advance innovative Open RAN applications for its 5G Smart City programs. The goal of this initiative is to develop new Open RAN applications that combine U.S. software with Taiwan telecom hardware products and export them to other markets. The Ministry of Economic Affairs (MOEA) is also organizing a series of broadband/Open RAN seminars and competitions, inviting U.S. system integrators and state economic development offices to attend and explore potential business opportunities with Taiwan companies. 

In June 2023, MODA announced the 5G Private Network Project, which allows providers to apply for licenses of up to ten years. U.S. telecom-related software and cloud service providers are encouraged to partner with Taiwanese firms for this program. To address spectrum interference concerns, MODA requires applicants to coordinate with local offices. Cybersecurity maintenance plans must also be included in the application. 

LEO Satellite Telecommunications Services 

The Taiwan authorities are exploring ways to utilize low earth orbit (LEO) satellite telecommunications services, noting their advantages regarding low latency, high broadband, and low costs. To attract global LEO satellite communications service providers to Taiwan, in 2022 the executive branch of the Taiwan authorities agreed to open the LEO telecommunications satellite services to select frequency bands—10.7-12.7GHz, 13.75-14.5GHz, 17.7-20.2GHz and 27.5-30.0GHz—to provide the island with synchronous and non-synchronous satellite fixed communications. This policy move creates business opportunities for U.S. NextGen satellite communications companies offering LEO telecommunications services at these frequencies.  

In April 2023, MODA invited Internet service providers to apply for proof-of-concept licenses for its Digital Resilience Verification Program, which tests the use of non-synchronous LEO satellites as an emergency backup network in the event of a natural or manmade disaster.  Through this plan, the Taiwan authorities are planning to establish 700 satellite sites in Taiwan and three sites abroad. 

Under current regulations, LEO telecommunications service providers must be incorporated in Taiwan. The total number of shares directly held by any foreign company cannot exceed 49% of the total, and the total number of indirectly held shares (through an intermediary) cannot exceed 60% of the total. To adhere to regulations, non-Taiwanese NextGen satellite communications companies may partner with local mobile carriers, who will act as their authorized agents for selling services in Taiwan. Investment from Chinese mainland investors is prohibited, and the minimum paid-in capital requirement is NT$300 million (US$9.82 million).