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TW — Country Profile

Taiwan

27TOTAL
15OFFICIAL SOURCES
11TOPIC AREAS
Law / Act12
National Strategy2
Standard / Framework1
Working Paper1
News / Press1
Other10
Antitrust & CompetitionChips & Data CentresCopyright & IpCybersecurityData Privacy & ProtectionDefense & National SecurityGenerative AINational StrategyPublic Sector & GovernanceSandboxTrade & Investment
Law / Act✓ Official

Taiwan AI Basic Act comes into effect

Taiwan President President Lai Ching-te has promulgated the Taiwan AI Basic Act which becomes effective from 14 January 2026. The Act promotes specific priorities, including allocating a generous AI budget, implementing AI industry subsidies and preferential measures, providing a friendly environment for innovation experimentation, promoting talent exchange and infrastructure building, and establishing a data governance mechanism, in order to create an innovative and friendly ecosystem for Taiwan's AI industry. Following enactment, the government will continue to act as an inter-ministerial coordination platform in guiding Taiwan to go beyond its semiconductor advantage to the integration of hardware and software.

14 January 2026Data Privacy & Protection
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Law / Act

Taiwan passes AI Basic Act

It is reported that Taiwan's Legislative Yuan has passed the Artificial Intelligence Basic Act, establishing a legal framework for AI governance and designating the National Science and Technology Council as the central authority. The act defines AI systems and mandates that government promotion of AI research and applications balance social welfare, digital equity, innovation, and national competitiveness, adhering to seven core principles including sustainability, human autonomy, privacy, cybersecurity, transparency, fairness, and accountability. To prevent harm, the law prohibits AI uses that infringe on life, freedom, property, or disrupt social order, and requires clear labeling of high-risk AI products. It also mandates the creation of a national AI strategy committee, allocation of sufficient budgets, strengthening of legal frameworks, and promotion of data protection measures. Additionally, the Ministry of Digital Affairs is tasked with developing an AI risk classification framework aligned with international standards and assisting industries in formulating sector-specific guidelines.

23 December 2025Data Privacy & ProtectionCybersecurity
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Other✓ Official

MAC warns about Chinese AI models

Taiwan's Mainland Affairs Council (MAC) has announced continued restrictions on the use of Chinese-made software and hardware in public-sector applications due to information security concerns. This decision follows the National Security Bureau's (NSB) findings that five Chinese large language models—DeepSeek, Doubao, Yiyan, Qwen, and Yuanbao—exhibit pro-China political bias and distorted historical interpretations, particularly on topics such as cross-strait relations and the South China Sea. The MAC emphasized the risks associated with Chinese applications, including data leakage and cybersecurity vulnerabilities, and highlighted Beijing's use of AI to disseminate disinformation and create societal divisions in Taiwan. The government plans to enhance media literacy education to help the public identify and counteract such disinformation.

18 November 2025CybersecurityDefense & National Security
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Other

Taiwan legislative session opens with AI focus

It is reported that Taiwan's new legislative session commenced with the Cabinet prioritizing 30 bills, notably focusing on establishing a basic law for AI. Premier Cho Jung-tai emphasized the importance of these initiatives, urging Democratic Progressive Party legislators to promote the government's agenda and improve collaboration between the executive and legislative branches.

20 September 2025Generative AIData Privacy & Protection
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Law / Act✓ Official

Executive Yuan passes AI Basic Act, now sent to Legislative Yuan for review

Taiwan's Executive Yuan has passed the draft "AI Basic Act", sending it to the Legislative Yuan for review. This new version is a refined take on the initial draft from July 2024, maintaining the core principles of AI R&D and applications while still lacking a dedicated competent authority. Notable changes include a shift from "may" to "shall" for competent authorities to create risk-based management regulations, though low-risk applications are exempt. A new provision in the draft specifies that situations where AI causes harm to life, property, or social order should be restricted or prohibited by law. Additionally, the new draft clarifies that the government must establish liability attribution and compensation mechanisms for high-risk AI applications, though these regulations will not apply to AI R&D unless it is tested in a real-world environment or used to provide products or services.

28 August 2025SandboxCybersecurity
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Law / Act

Taiwan AI bill under question amid legislative and industry discord

It is reported that Taiwan's parliament has stalled the proposed "AI Basic Law" due to a lack of consensus, prompting calls for the suspension of efforts to achieve comprehensive legislation until there is a clearer picture of the fast-growing AI market.

18 June 2025National Strategy
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Other✓ Official

Taiwan imposes export controls on Huawei, SMIC

Taiwan's International Trade Administration has released an update on its strategic high-tech commodities entity list, which now blacklists 601 entities - notably including Huawei Technologies Co. and Semiconductor Manufacturing International Corp. (and several of their subsidiaries). Local companies in Taiwan will now require approval from the government before they can ship infrastructure and materials necessary for advanced chip production (including plant construction technologies and manufacturing equipment) to entities on that list. The new restrictions imposed by Taipei are said to aim at partially cutting off Huawei and SMIC’s access to Taiwan’s advanced chip technologies like those made by Taiwan Semiconductor Manufacturing Co.

15 June 2025Defense & National Security
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Law / Act

Legislative hearing into Taiwan AI basic law

It is reported that, at a joint hearing on proposals to craft an AI basic law held by the Legislative Yuan’s Education and Culture Committee and Transportation Committee, Deputy Minister of Digital Affairs Yeh Ning (葉寧) said that (1) the Ministry is not prepared to unveil its proposal at the moment, as the Executive Yuan is still in the process of assessing its requisite funding levels; (2) overcoming capability gaps in Taiwan’s AI industry with regard to large language models and creating a legal framework governing fair use of data by developers are the Ministry’s main concerns regarding the bill; (3) officials are creating a database for traditional Chinese character-based content and a national-level corpus, but it is expected to be time-consuming; and (4) the Ministry is cultivating a workforce in collaboration with the National Council of Science and Technology and the Ministry of Education. The legislative hearing also heard suggestions from academics and industry insiders who have collectively called for Taiwanese lawmakers to support the development of large-language models with traditional Chinese characters, promote public-private collaborations, and establish legal frameworks for data use and privacy.

17 April 2025Data Privacy & ProtectionCopyright & Ip
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Law / Act

Taiwan AI Basic Act reportedly delayed

It is reported that Taiwan's AI Basic Act (which was announced in November 2023) is delayed, having yet to reach the Legislative Yuan for substantive discussions.

25 March 2025National Strategy
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Other✓ Official

President Trump and TSMC announce $100 billion plan to build five new US factories

President Trump has announced a historic $100 billion investment by Taiwan Semiconductor Manufacturing Company (TSMC) in its Arizona semiconductor manufacturing operations, marking the largest foreign direct investment in US history. This investment will fund the construction of five advanced fabrication facilities in Arizona, creating thousands of high-paying jobs and bringing TSMC's total investment in the US to approximately $165 billion.

3 March 2025Chips & Data Centres
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Law / Act

Taiwan's first AI law expected by mid-2025

It is reported that the Taiwanese government is set to submit to parliament a draft of the AI Basic Act. With bipartisan support marking it as a priority bill, Taiwan is positioned to have its first AI-specific law by the end of June 2025.

20 February 2025Generative AIData Privacy & Protection
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Other✓ Official

Taiwan bans government agencies and critical infrastructure from using DeepSeek

The Taiwanese Ministry of Digital Affairs adopted an order banning government departments and cirtical infrastructure from using Chinese AI service DeepSeek on the basis of security risk concerns. The ban applies to employees of central and local government agencies, public schools, state-owned enterprises and other semi-official organizations as well as those working on critical infrastructure projects and in government-endowed foundations.

3 February 2025CybersecurityGenerative AIDefense & National Security
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Other

Trump to tariff chips made In Taiwan, targeting TSMC

In his conference speech to the Republican Party in Florida, President Trump has stated, among other matters, that he is preparing to place tariffs beyond Chinese assembled electronics to computer chips made in Taiwan, warning the tariffs could reach as high as 100%. President Trump made specific reference to TSMC, expressing intentions to move TSMC's chip production back to the US (which used to be its base before it had moved to Taiwan). Further details have yet to be revealed.

28 January 2025Chips & Data Centres
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Law / Act✓ Official

Taiwan launches public consultation into an AI law

The National Science and Technology Commission of Taiwan has issued the draft of the "Basic Law on Artificial Intelligence" for public consultation. Consultation will close on 13 September 2024.

15 July 2024National Strategy
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Law / Act

Taiwan drafts AI law focusing on human rights

In a significant move towards AI regulation, Taiwan's Premier Cho Jung-tai announced the drafting of the "Artificial Intelligence Fundamental Act", emphasizing that AI use must respect human rights and social stability. The announcement was in response to DPP legislator Wu Pei-yi's concerns about the progress of the AI legislation and her call for the government to expedite the process to enhance Taiwan's global AI competitiveness. NSTC Minister Wu Cheng-wen acknowledged the need to balance user privacy, human rights, and industrial growth in the face of rapidly evolving AI technologies. The forthcoming AI Fundamental Act will aim to ensure ethical AI use and its integration into society, demonstrating the government's commitment to uphold human dignity while seizing the opportunities presented by AI.

15 June 2024Data Privacy & ProtectionGenerative AI
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Law / Act

Draft of Taiwan's AI governing law expected in 2024

At the legislative committee meeting, head of Taiwan's National Science and Technology Council (NSTC), Wu Cheng-wen, said that Taiwan plans to draft a law governing the use of AI and submit it to the Executive Yuan by the end of 2024, or even as early as the end of October. Cheng-wen stated that Taiwan's AI basic law will be more aligned with what the United States and Japan have been following, which is a more open attitude to AI use, rather than that of the European Union, which is more conservative and discreet.

23 May 2024National Strategy
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Other

Taiwan to implement AI regulation as early as end-2023

Taiwan is expected to implement AI regulation by the end of this year or January 2024, according to market sources.

27 June 2023SandboxGenerative AIData Privacy & Protection
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Working Paper✓ Official

Fair Trade Commission opened consultation on inquiry into generative AI and competition policy

Taiwan's Fair Trade Commission has launched a public consultation paper on generative AI and competition policy. The consultation applies to Taiwan's AI industry, including hardware suppliers, model developers, and application deployers. The consultation seeks input on four competition law areas, including market dominance abuse, concerted actions, market concentration, and unfair competition practices in the AI sector. The consultation closes on 7 September 2025.

18 July 2025Antitrust & CompetitionGenerative AI
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Standard / Framework✓ Official

Taiwan FSC releases guidelines for the use of AI in the financial industry

The Financial Supervisory Commission (FSC) of Taiwan has released the "Guidelines for the Use of Artificial Intelligence (AI) in the Financial Industry". The Guidelines includes general provisions for financial institutions on: (1) establishing clear contracts and risk-sharing mechanisms when outsourcing AI operations; (2) conducting comprehensive risk assessments before AI implementation; (3) implementing internal and independent third-party evaluation of AI systems; (4) ensuring human oversight and mitigating bias in AI (especially in outsourced operations); (5) adhering to GDPR principles and avoiding excessive data collection; (6) maintaining clear documentation of AI system operations and decision-making logic; and (7) publishing reports and disclosing relevant information to maintain market trust.

20 June 2024Data Privacy & Protection
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Other✓ Official

US and Taiwan sign deal on reshoring of semiconductors to the US

The American Institute in Taiwan has signed a historic trade agreement with the Taipei Economic and Cultural Representative Office to drive a massive reshoring of the US semiconductor sector and strengthen domestic economic resilience. This strategic partnership mandates at least $250 billion in direct investments from Taiwanese technology enterprises into U.S. production facilities for semiconductors, energy, and artificial intelligence, supplemented by an additional $250 billion in credit guarantees to establish a robust industrial ecosystem. The deal includes the creation of world-class industrial parks within the United States and facilitates American investment in Taiwan’s defense, telecommunications, and biotechnology sectors to deepen technological collaboration. To ensure balanced trade, the agreement implements a predictable tariff framework where U.S. reciprocal rates on Taiwanese goods are capped at 15 percent, while providing zero percent tariffs for aircraft components and generic pharmaceuticals. Furthermore, the pact incentivizes domestic manufacturing by allowing Taiwanese companies to import specific quantities of semiconductors duty-free based on their progress in building and completing new production capacity on American soil. This initiative aims to reverse the long-term decline of the US share of global wafer fabrication and secure the foundational components necessary for modern telecommunications, automobiles, and military hardware.

15 January 2026Trade & InvestmentChips & Data Centres
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Other

2025 APEC Digital and AI Ministerial Statement

At the APEC summit in Incheon, South Korea, the Asia-Pacific Economic Cooperation adopted the 2025 Digital and AI Ministerial Statement, highlighting the role of AI in driving innovation and addressing socio-economic challenges. The statement emphasises secure and responsible adoption of AI and other digital technologies to enhance productivity, efficiency, resilience, and economic development. It encourages member economies to integrate these technologies with balanced, human-centred approaches to workforce development, education, and lifelong learning. It also promotes cooperation and information-sharing on digital policies to strengthen regional collaboration, cross-border trade, and investment, while fostering greater understanding of the benefits of emerging technologies.

4 August 2025Cybersecurity
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News / Press

US ordered TSMC to halt shipments to China of chips used in AI applications

It has been reported that the US Department of Commerce has sent a letter to Taiwan Semiconductor Manufacturing Co (TSMC) imposing export restrictions on certain sophisticated chips, of 7 nanometer or more advanced designs, destined for China that power AI accelerator and graphics processing units (GPU). This order followed just weeks after TSMC notified the Commerce Department that one of its chips had been found in a Huawei AI processor.

10 November 2024Defense & National Security
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National Strategy✓ Official

Taiwan AI Action Plan 2.0 (2023):

Taiwan's second 4 year action plan on AI (2023-2026) which aims to enhance the regulation of AI, establish an AI product/system evaluation center, and promulgate AI norms and standards for international integration.

Public Sector & Governance
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National Strategy✓ Official

Taiwan AI Action Plan (2018):

Taiwan's first 4 year action plan on AI (2018-2021), which is guided by the principles of deregulation, open access and technology investment.

Public Sector & Governance
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Other✓ Official

AI Basic Act:

An act which establishes a foundational, principle-based framework designed to balance rapid AI innovation with safety, ethical governance, and risk management. The Act designates the National Science and Technology Council (NSTC) as the central authority, directing the Ministry of Digital Affairs (MODA) to create an internationally aligned risk classification system for AI applications. It codifies seven key principles—including human autonomy, privacy protection, safety, and transparency—and mandates the government to promote R&D, provide funding for infrastructure, protect labor rights, and develop regulatory sandboxes, while requiring high-risk AI systems to display warnings. The legislation emphasizes a "human-centric" approach, aiming to foster a robust AI industry while mitigating threats to public order, national security, and social equity.

SandboxData Privacy & ProtectionDefense & National Security
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Law / Act✓ Official

Unmanned Vehicle Technology Innovation and Experiment Act (2018):

This act establishes a regulatory sandbox for autonomous/self-driving vehicles, AI application testing and IoT technology in transportation.

Sandbox
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Law / Act✓ Official

Financial Technology Development and Innovative Experimentation Act (2018):

This act establishes a fintech regulatory sandbox to enable fintech businesses to test their financial technologies (including AI) in a controlled regulatory environment.

Sandbox
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