TAIPEI (Taiwan News) — Taiwan’s computer and information services sector reported NT$149.7 billion (US$4.99 billion) in revenue during the first quarter, up 5.3% year-on-year, the Ministry of Digital Affairs said Thursday.

Computer programming services accounted for the bulk of the total, reaching NT$111.7 billion, an increase of 7.8% from the same period last year. Information services, however, fell 1.5% to NT$37.9 billion, per CNA.

MODA attributed the decline in information services to delayed project cycles and cautious market sentiment. It noted, however, that strong demand for AI and cybersecurity continued to drive growth overall, per a press release.

The increase in programming services was fueled by enterprise adoption of AI tools, heightened cybersecurity requirements, and growing investment in cloud infrastructure, the ministry said.

AI applications such as chatbots, retrieval-augmented generation (RAG), and AI copilots are becoming increasingly popular. Companies are also seeking services for data labeling and model integration to support these deployments.

MODA added that the proposed AI Basic Act has prompted firms to begin planning compliance frameworks and risk governance structures, per Liberty Times. Meanwhile, upcoming amendments to the Cybersecurity Management Act will expand regulatory oversight to include banking, healthcare, and other critical infrastructure sectors.

These legal trends are pushing companies to boost investment in cybersecurity and AI risk management, creating new opportunities for system integrators and software developers, the ministry said.