Taiwan Cybersecurity

Taiwan is a significant player in the global technology industry, especially in the production of semiconductor chips and computer hardware components. However, Taiwan’s unique geostrategic position and prowess as a global technology leader brings significant cybersecurity risks. To mitigate these risks, Taiwan authorities have started promoting the U.S. Department of Defense (DOD) Cybersecurity Maturity Model Certification (CMMC) framework, as the gold standard for local businesses to improve their internal cybersecurity practices and protect their digital assets from advanced, persistent cyber threats. This trend has created excellent export opportunities for U.S. companies offering cybersecurity solutions that help customers comply with CMMC, as well as U.S. companies offering consulting services in this area.

Taiwan authorities have leveraged the situation by scaling up their local defense-related supply chains’ cybersecurity awareness. The Ministry of Digital Affairs (MODA) has prepared a training series for public and private sector organizations to familiarize themselves with CMMC and plans to help counsel local industry on how to earn the coveted certification. The Institute for National Defense and Security Research (INDSR) - a Taiwan think tank focused on the defense and security industry - is also collaborating with the Taiwan Defense Industry Development Association (TW-DIDA) and the American Institute in Taiwan (AIT) to promote CMMC awareness among the local defense industry.

Another factor contributing to Taiwan’s rising demand for CMMC compliance solutions is that DOD certification will soon be required to sell into its supply chains, and by 2026, all parties engaged in DOD procurement will need to pass CMMC 2.0 certification requirements. Given Taiwan and U.S. economic integration – Taiwan is the United States’ ninth largest trading partner - this requirement will have a significant impact on Taiwan ICT hardware vendors, and other sectors, selling into U.S. DOD supply chains.

These market trends in Taiwan present a significant opportunity for U.S. cybersecurity companies offering CMMC-compliant solutions to expand their operations and gain new customers on the island. U.S. companies have a reputation for providing high-quality cybersecurity solutions and services, and the Taiwan market is receptive to such expertise. It is highly recommended that U.S. companies have a Mandarin-speaking staff or local partner on island to overcome this barrier.

In this context, AIT’s Commercial Section is organizing a critical CMMC event in Taipei on April 24, 2024, offering an exceptional platform for companies seeking to broaden their market presence in Taiwan. Further details can be found here.  

U.S. firms interested in expanding their export opportunities in this exciting industry segment are encouraged to contact CS Taiwan Commercial Specialist Rita Chen at Rita.Chen@trade.gov.