Taiwan telecom firms tap growing global cybersecurity market

台灣電信業者搶攻全球資安市場商機

TAIPEI (Taiwan News) — Taiwan’s major telecommunications companies are expanding their cybersecurity businesses overseas as companies face growing security risks associated with AI adoption, CTEE reported Wednesday.

Chunghwa Telecom Co. subsidiary CHT Security Co. reported NT$24.7 million (US$776,634) in overseas revenue in the first half of the year, up 233% from the same period a year earlier. Growth was driven mainly by business from overseas semiconductor and financial companies, as well as expanded partnerships in Malaysia and Thailand.

CHT Security provides cybersecurity services and products. Demand for these services has grown among financial, healthcare, and high-tech manufacturing companies as they address security risks linked to AI.

The growth in demand has also contributed to higher overall revenue. CHT Security reported cumulative revenue of NT$1.5 billion in the first eight months of the year, up 17% year-over-year.

Far EasTone Telecommunications Co. subsidiary Information Security Service Digital United Inc. is also building its cybersecurity capabilities for international expansion. The company passed an assessment by the Forum of Incident Response and Security Teams (FIRST) in November, according to CNA.

It is now one of the few companies in Taiwan with an internationally recognized corporate computer security incident response team. FIRST is a global cybersecurity incident response organization with 883 member teams from more than 100 countries, including government agencies, academic institutions, companies, and cybersecurity firms, according to FIRST.

Information Security Service Digital United now serves more than 400 customers, including government agencies, companies in critical infrastructure sectors such as finance and healthcare, and high-tech manufacturers. Its services include cybersecurity assessments, penetration testing, and security monitoring.

Taiwan Mobile Co. has also expanded its enterprise technology and cybersecurity capabilities through its investment in Systex Corp., an information technology services provider. Taiwan Mobile acquired an 11.86% stake in Systex in 2024, becoming its largest single corporate shareholder.

In August, Taiwan Mobile announced plans to launch a tender offer for another 39-58% stake in Systex. The two companies have already expanded into Japan and Southeast Asia, with the partnership set to further develop their international businesses, according to LTN.

Nvidia CEO Jensen Huang (黃仁勳) recently said cybersecurity could become a major new application for AI. As AI becomes increasingly capable of developing software, it could also help detect and fix software vulnerabilities and defend against malicious attacks. This could drive further demand for around-the-clock cybersecurity services and computing resources, according to MoneyDJ.