Taiwan’s digital ID card initiative suspension adds NT$202M in costs

Reports indicate that the Ministry of the Interior (MOI) in Taiwan is set to face a significant financial burden. The suspension of the digital ID card initiative will cost the MOI 202 million New Taiwan dollars (approximately US$6.27 million) from January 2021 to December 2023. The accumulation of charges is reported to the MOI every six months.

Taiwan initiated the digital ID card program to replace conventional identity cards with digital counterparts in an effort to modernize government services and improve security measures. However, the decision to temporarily suspend the program in 2021 has resulted in ballooning costs.

The state-owned Central Engraving and Printing Plant, responsible for the production and upkeep of these digital IDs, has faced additional expenses due to the delay. These costs arise from several factors, such as materials, manpower, and utilities.

The manufacturer of the blank ID cards is Idemia, and additional equipment for the initiative is supplied by Entrust Datacard, Storm Media reports.

In response to the project’s challenges, the Legislative Yuan’s Internal Administration Committee established a task force to review the implementation of the digital ID card replacement policy and its budget. The committee is led by independent legislator May Chin to ensure transparency and accountability.

In February 2020, the committee completed the bidding process and entered into a contract with TECO Electric & Machinery Co. Ltd. for the PC chip card and printing equipment (B-type project). However, in October 2022, the company initiated dispute mediation with the Cabinet’s Public Construction Commission (PCC) due to unresolved issues. The mediation process was established in January 2024.

The project suppliers originally sought NT$1 billion in compensation for losses and unrecovered investments due to the suspension of the digital ID program. That amount was negotiated down to NT$280 million (approximately $8.9 million), according to a report by TVBS in March 2024, taxpayers are expected to bear this financial burden, on top of the still-growing maintenance bill.

Article Topics

digital ID  |  Entrust  |  IDEMIA  |  identity document  |  Taiwan