Hudson Institute

**Memo | Resilience Is Deterrence: Why #Taiwan’s Cyber Weakness Is a Strategic Risk** Great to publish the memo via Hudson Institute where my co-author Joe Saunders and I argue that Taiwan’s digital vulnerabilities pose a critical strategic risk both for the island’s security and for global stability. Taiwan, which produces nearly #90% of the world’s advanced semiconductors and occupies a vital position in Indo-Pacific trade, is increasingly targeted by Chinese cyber operations. In 2024, Taiwan endured an average of 2.4 million cyberattacks daily, ranging from probes of government systems to intrusions into energy and logistics networks. Three key risks: 1. #Infrastructure Fragility – Taiwan’s power grid, telecoms, and undersea cables are highly centralized and vulnerable to disruption. Cyberattacks could cripple cities, emergency services, and semiconductor production, sending global economic shockwaves. 2. #Disinformation Campaigns – China uses coordinated online influence operations to undermine public trust, polarize society, and weaken Taiwan’s democracy without triggering military escalation. 3. #AllianceGaps – Unlike Ukraine or Israel, Taiwan lacks an integrated cyber-defense framework with allies. The absence of a clear doctrine for joint retaliation weakens deterrence and emboldens Beijing. Policy Recommendations: • Dedicate at least $300 million annually to cyber resilience within Taiwan’s defense budget. • Migrate critical government and industrial systems to secure cloud infrastructure. • Build offline recovery capabilities for essential services. • Enhance public-private coordination and real-time threat intelligence sharing. • Conduct joint cyber exercises with allies (U.S., Japan, etc.) to prepare for hybrid conflict. • Invest in AI-enabled detection and firmware-level security. Taiwan cannot defend itself if it cannot communicate, govern, or keep its economy online. Strengthening Taiwan’s digital defenses is not just about protecting one democracy—it is a global imperative to secure supply chains, preserve democratic integrity, and prevent China from reshaping the world order on its terms. Resilience is deterrence. Taiwan’s survival depends on its ability to withstand a digital siege, and supporting its cyber defenses is in the shared security interest of the United States and its allies.