Several incidents involving damaged submarine cables near Taiwan in recent years have heightened concerns about gray-zone activities in underwater environments and the resilience of critical infrastructure. Submarine cables, energy pipelines, offshore wind farms, and other facilities are essential to the functioning of modern economies. The underwater domain is therefore no longer merely a matter of marine engineering or traditional security. It is closely connected to digital communications, energy supplies, financial transactions, business operations, and government administration. Underwater security is also becoming an increasingly important component of economic security and national resilience.
Beyond National Defense: Submarine Cables and Energy Infrastructure Shape Economic Resilience
Chan Hui Lin, Assistant Research Fellow at the Center for International Trade Policy of the Chung-Hua Institution for Economic Research (CIER), said China has continued to invest in deep-sea engineering, marine scientific research, unmanned underwater vehicles, and underwater sensing technologies in recent years. These technologies are highly dual-use in nature. During peacetime, they can support marine exploration, resource development, and the construction of underwater infrastructure. When tensions escalate, they may also be used for underwater reconnaissance, intelligence gathering, and interference with critical infrastructure.
For Taiwan, this means competition in the underwater domain is no longer limited to protecting individual facilities. It has become a broader challenge involving technology, industry, and infrastructure resilience. Reducing dependence on any single source of equipment, technology, or services while developing independent maintenance, monitoring, and emergency response capabilities will be critical to strengthening Taiwan’s economic resilience.
Dual-Use UUVs and ROVs Present Strategic Entry Point for the Underwater Technology Industry
Lin said Taiwan is not starting from scratch in developing underwater technologies. It already has a comprehensive industrial foundation in semiconductors, information and communications technology, artificial intelligence, precision manufacturing, shipbuilding, and marine engineering. Applying these existing capabilities to underwater applications could help Taiwan gradually build an autonomous underwater technology supply chain.
First, semiconductor, electronics, and sensing technologies can provide the upstream foundation for underwater applications. Underwater environments involve high pressure, low temperatures, corrosion, and limited communications. These conditions impose stringent reliability requirements on equipment used to measure pressure, temperature, salinity, acoustics, and images. Taiwan could develop differentiated technological capabilities by focusing on highly reliable sensing components and electronic equipment.
Second, AI and ICT capabilities can be extended to underwater sensing and data analysis, including underwater target recognition, acoustic data analysis, autonomous navigation, and remote monitoring. These applications could create an emerging market for “AI plus marine technology.” Combining Taiwan’s existing strengths in AI computing, communications, and software would help make underwater equipment more intelligent.
In unmanned vehicles, Taiwan already has a technological foundation in domestically developed remotely operated underwater vehicles. These systems can be used for port security inspections, submarine cable and energy infrastructure maintenance, and marine scientific research. Compared with large underwater platforms, unmanned systems such as UUVs and ROVs serve a wider range of civilian markets. They can also support a mutually reinforcing cycle of dual-use technological development and market growth.
Taiwan’s experience in shipbuilding, marine engineering, offshore wind power, and port construction can also provide important support for underwater systems integration and engineering services. Lin said Taiwan is particularly dependent on submarine cables and offshore energy infrastructure. Strengthening domestic underwater inspection, maintenance, and engineering capabilities would not only enhance the resilience of its critical infrastructure but also create opportunities to expand into Indo-Pacific markets.
From Cable Repair to Smart Sensing: Building a Comprehensive Submarine Tech Supply Chain
As the underwater domain grows increasingly important, Taiwan should move beyond protecting individual subsea facilities and focus on building a comprehensive underwater technology ecosystem. The government could assess the needs of critical infrastructure, including submarine cables, energy facilities, and offshore wind farms. This could promote collaboration among industries specializing in sensors, AI and ICT, precision electromechanical systems, unmanned underwater vehicles, shipbuilding, marine engineering, and maintenance services.
More importantly, Taiwan should leverage public infrastructure demand, demonstration sites, and collaboration among industry, academia, and research institutions to establish mechanisms for equipment testing, certification, maintenance, and talent development. This would allow domestic technologies to move beyond research and development and achieve stable commercial deployment.
Lin indicated that the underwater domain is emerging as a new arena for technological and industrial competition. By leveraging its existing strengths in technology and manufacturing, Taiwan can gradually develop capabilities spanning critical components, smart sensing, unmanned systems, and marine engineering. Transforming underwater security needs into opportunities for industrial upgrading would strengthen the resilience of critical infrastructure while fostering new technology services and international market opportunities.
Author: CIER Editorial Team
Date: September 18, 2026