Taiwan’s growing role in global technology and trade has also made it a key target for cyber threats, according to a recent analysis. The island is responsible for producing nearly 90 percent of the world’s advanced semiconductors and sits near important shipping routes in the Indo-Pacific region. These factors increase its strategic value but also its vulnerability.
China has increased pressure on Taiwan through various means, including cyberattacks. In 2024, Taiwan reportedly faced an average of 2.4 million cyberattacks daily, affecting government systems, energy infrastructure, and logistics networks. Most attacks did not receive international attention but represent a continuous campaign that could escalate if tensions rise.
“Disabling would both weaken Taiwan’s defense capabilities and paralyze its society without expending a single missile,” the report notes.
The analysis draws parallels with Russia’s invasion of Ukraine in 2022, where cyberattacks were used to disrupt command structures and communications before physical military actions began. Observers believe China is studying these tactics closely.
Taiwan’s energy grid relies heavily on imported fossil fuels and centralized digital control systems such as SCADA and DCS networks. These are considered vulnerable to sabotage via cyber means. A successful attack could result in blackouts across major cities and hinder emergency services.
Telecommunications present another risk: only 15 undersea cables connect Taiwan internationally, some of which have been damaged under unclear circumstances. While efforts are underway to improve satellite connectivity with Western partners, current capacity is insufficient for crisis situations.
Critical sectors such as healthcare, finance, semiconductor manufacturing, and transportation all depend on secure digital infrastructure. Disruptions could impact not just Taiwan but global markets reliant on Taiwanese semiconductors—a sector difficult to replicate elsewhere due to its unique concentration on the island.
“Disabling these systems would not only sow chaos within Taiwan. It would also send shockwaves across global markets, particularly in the technology sector,” according to the report.
The report highlights that China employs influence operations alongside technical attacks by spreading propaganda online to undermine public trust in Taiwanese democracy. “These digital campaigns often accompany military exercises or diplomatic pressure, creating a layered effect that tests the resilience of Taiwan’s political system without triggering international retaliation.”
The study argues that China aims to degrade Taiwan’s functionality rather than relying solely on traditional military force: “The goal is to digitally isolate the island, fracture social trust among Taiwanese people, and paralyze Taiwan’s economy.”
Lessons from other countries suggest that moving critical systems onto cloud platforms can help maintain continuity during crises; Israel has responded quickly to similar threats through strong cyber alliances with partners like the United States.
However, there is currently no formal framework for joint cyber defense among Indo-Pacific allies should an attack occur against Taiwan. This lack of clarity may lead to hesitation in response—something seen as an advantage for Beijing.
“If Taiwan’s grid is taken offline or its financial networks are sabotaged, would Tokyo respond? Would Washington activate countermeasures inside Chinese networks? The absence of a clear doctrine…guarantees hesitation,” says the report.
Taiwan increased its defense budget in 2025 but dedicated little funding specifically toward digital resilience. The report recommends allocating at least $300 million annually for cybersecurity improvements such as migrating core systems to secure cloud environments, developing offline recovery capabilities for essential services, conducting joint exercises with allies, sharing threat intelligence in real time, and investing in advanced security technologies.
“A country cannot fight if it cannot communicate. It cannot govern if its systems are paralyzed,” states the analysis.
Defending Taiwan’s networks has implications beyond Asia; Chinese state-backed groups have targeted American critical infrastructure as well (https://www.cisa.gov/news-events/news/chinese-state-sponsored-cyber-actors-living-and-working-networks-critical-infrastructure). The tactics used against Taiwan today could be deployed elsewhere tomorrow.
“The survival of Taiwan’s democracy and economy depends on its ability to resist a digital siege,” concludes the report.
