Compensation for Taiwan's Halted ID Plan

Taiwan may have to pay substantial compensation to a contractor after the country’s digital ID plan was halted due to privacy and cybersecurity concerns.

According to an article in Taiwan News, the unnamed contractor is seeking approximately US$17 million in compensation for costs incurred that include equipment purchases, venue fees, maintenance and air conditioning, but the lawsuit could end up costing taxpayers as much as US$33 million.

Taiwan announced its eID program in 2018, projecting it to cost US$160 million over a 10-year period. Cards were due to be issued in 2020, following a trial period in Hsinchu City, but the launch was delayed to July 2021.

Legal issues surrounding the eID card had surfaced as early as November 2022 when Taiwan’s privacy advocates tested the government on their plans to prevent personal data theft during the card roll-out.

Led by the Taiwan Association for Human Rights, over 50 professionals jointly filed suit against the Ministry of Interior, the authority responsible for issuing the new electronic national identification cards.

According to the country’s Household Registration Act, all nationals would have to replace their traditional cards with a digital one. Concerns were raised that the design of the national household registration system had involved Chinese programmers – an assertion denied by the developer, International Integrated Systems Inc.

No timeline for re-starting the ID program has been released, but privacy advocates continue to push for new legislation that requires stronger data protection.