Taiwan’s Submarine Cable Network Strategic Value and Future Outlook

Submarine cable systems serve as the lifeline of modern global communication infrastructure, carrying over 95% of international data traffic. These underwater highways not only support daily internet communications but also form the backbone of critical applications including financial transactions, cloud computing, and the Internet of Things (IoT).

The importance of submarine cables continues to grow with the rapid digitalization of the Asia-Pacific region in recent years. In 2021, Facebook and Google announced their investment in the Apricot submarine cable system scheduled to be operational by 2024-2025, connecting Japan, Singapore, Guam, the Philippines, Taiwan, and Indonesia.

Strategic Positioning and Geopolitical Significance of Taiwan’s Submarine Cable Network

Taiwan’s strategic location at the crossroads of East Asia makes it a crucial node in the region. This geographic advantage has established Taiwan as a regional communications hub, with multiple major trans-Pacific submarine cables landing on its shores. As of 2023, Taiwan connects to approximately 15 major submarine cable systems, including key infrastructure such as the Asia-Pacific Gateway (APG), the New Cross Pacific (NCP) cable system capacity, and the FASTER cable system.

These submarine cables collectively provide over 300 Tbps of designed capacity, linking Taiwan to major markets including Japan, South Korea, Hong Kong, the Philippines, Singapore, and the United States.

Taiwan’s submarine cable infrastructure has developed extensively over the years, with more than ten major international submarine cables now landing on its shores. Key systems such as the APG, Asia-America Gateway (AAG), Southeast Asia Japan Cable (SJC), and FASTER Cable System form an interconnected network that strengthens Taiwan’s position as a regional communications hub. The primary landing points are strategically positioned around the island, with major facilities in Toucheng, Tamsui, and Fangshan, creating a resilient network infrastructure that ensures reliable connectivity.

Taiwan’s submarine cable network holds not only commercial value but also significant geopolitical importance. As a crucial node connecting Asia and the Americas, Taiwan’s communications infrastructure plays a vital role in regional security and stability. This position enables Taiwan to serve as a key facilitator of digital trade and communication between Eastern and Western markets.

Infrastructure Resilience and Security Challenges

The submarine cable systems face a complex array of challenges in today’s geopolitical environment. Physical threats from geopolitical conflicts pose significant risks to these crucial infrastructure elements, while cybersecurity threats continue to evolve and become more sophisticated.

Of the approximately 450 submarine cables worldwide, there are about 50 to 100 cable damage incidents annually, averaging 0.1 to 0.2 damage incidents per cable per year globally. However, according to a report by Taiwan’s Control Yuan the Taiwan-Matsu submarine cables experience an average of 5.1 damage incidents per year, which is 25 to 50 times higher than the global average – clearly an abnormal frequency.

The Control Yuan’s report also revealed that between 2019 and 2023, there were 36 cases of external damage or disruption to domestic submarine cables, averaging about 7 incidents per year. In 2023, the number peaked at 12 incidents, marking the highest annual count on record.

Natural disasters, particularly in the seismically active Pacific region, present ongoing risks to cable integrity. Additionally, accidental damage from fishing vessels and ship anchors remains a persistent concern that requires constant monitoring and rapid response capabilities.

Due to multiple disruptions in the Matsu-Taiwan submarine cable in recent years, the Ministry of Digital Affairs (MODA) requested administrative approval from the Executive Yuan in 2024 to classify the Matsu-Taiwan submarine cable as a Critical Infrastructure Asset. Based on past incidents, the entities causing damage have not faced legal consequences.

Hostile forces could potentially gain insights into Taiwan’s response measures by studying cable damages, including calculating repair times and identifying international cable repair vessels. In a potential war scenario, such information would be crucial intelligence. Therefore, regardless of whether damage is intentional, revealing such details should be avoided.

Taiwan’s MODA has recently implemented multi-pronged approaches to strengthen communication resilience and submarine cable protection mechanisms. These include cable operators hiring vessels for patrol and warning nearby fishing boats, and the Coast Guard using monitoring systems to advise and redirect vessels approaching submarine cables.

Economic and Technological Development Opportunities

The investment in submarine cable infrastructure has created significant economic ripple effects throughout Taiwan’s technology sector. This advanced connectivity has been instrumental in promoting digital economy development, attracting multinational corporate investments, and creating high-skilled employment opportunities. The enhanced international connectivity has particularly benefited Taiwan’s semiconductor and technology manufacturing sectors, reinforcing the island’s position as a global tech hub.

Due to the massive investment required for submarine cables, international operators often form alliances for joint investment. In Taiwan, submarine cables are almost exclusively managed by Chunghwa Telecom (中華電信), the former state-owned telecom company. Over decades, Chunghwa has invested in over 30 international submarine cables, with approximately 14 cables connecting Taiwan internationally.

International submarine cables typically have costs shared among countries. Chunghwa has also built around 10 domestic submarine cables, implementing multi-route backup strategies through different cables, multiple satellite tracks, and microwave systems. They are fully supporting the establishment of additional cable stations and backup data centers to mitigate risks.

MODA is subsidizing Chunghwa Telecom to build the Matsu-Taiwan No. 4 submarine cable, which aims to increase communication routes and distribute risks. The cable is scheduled for completion in June 2026 and will improve overall network reliability and service quality.  Simultaneously, MODA has subsidized Chunghwa to construct new international landing stations and backup facilities to increase Taiwan’s international cable connections. Additionally, when cables or microwave systems are unavailable, MODA plans to use SES mid-orbit satellites and OneWeb low-orbit satellite systems to ensure uninterrupted military and governmental communication systems.

Submarine Cables as Fundamental National Infrastructure

Taiwan’s submarine cable network represents far more than mere communications infrastructure; it is a national strategic asset that enhances the country’s global influence and economic security. Through continued investment and innovation in this critical infrastructure, Taiwan maintains its position as an indispensable node in both geopolitical and regional communications networks.

Under the US-China confrontational atmosphere, the market is highly focused on the Clean Network. The US-led submarine cables are trying to avoid landing in Hong Kong, with more cables landing in Taiwan. Future international submarine cable deployment will avoid politically sensitive areas with difficult permit acquisition. Supply chain equipment aims to depoliticize, and cable landing locations will be carefully considered. Taiwan has advantages over Southeast Asia, including democratic values, high engineering quality, and a comprehensive supply chain.

As a vital digital hub in the Asia-Pacific region, Taiwan’s submarine cable network plays a crucial role in ensuring regional stability and promoting economic development. The government has implemented multiple measures to enhance communication resilience, though protective costs will continue to rise and remain relatively passive. In the digital age, submarine cables have become an essential component of national infrastructure, fundamentally tied to economic prosperity and national security.

The network’s resilience and capacity have become increasingly important as digital transformation accelerates across all sectors of the global economy. Through strategic planning and investment, Taiwan must continue to strengthen its cable network to maintain international competitiveness, ensure digital sovereignty, and consolidate its position as a regional communications hub. This infrastructure will be crucial in supporting Taiwan’s continued growth as a global technology leader and ensuring its central role in the future of digital communications.

(Featured photo by Berend de Kort on Pexels)