Taiwan's Chunghwa Telecom Announces Major Investment in New Trans-Pacific Submarine Cable to Boost Connectivity

Strengthening Digital Infrastructure and AI Capabilities Across the Pacific

In a significant move to bolster its digital infrastructure and address the growing demands of artificial intelligence (AI), Taiwan's leading telecom provider, Chunghwa Telecom Co (中華電信), has announced a substantial investment of over NT$4.6 billion (US$139.2 million) in a new trans-Pacific fiber-optic submarine cable. This ambitious project, developed in collaboration with global partners, aims to fortify network resilience and cater to the escalating needs of AI applications.

This strategic investment by Chunghwa Telecom comes at a crucial time, following concerns regarding the security of submarine cables connected to Taiwan, which have faced disruptions due to external factors. The new subsea cable network, known as E2A, will be jointly developed and funded by a consortium that includes Chunghwa Telecom, SK Broadband Co, Softbank Corp, and Verizon Business Global LLC.

The E2A cable, spanning an impressive 12,500km, promises to significantly enhance digital connectivity between Asia and North America. This advanced infrastructure will serve as a robust backbone for AI applications, data centers, and cloud services, ensuring high-speed connectivity across the Pacific Ocean and within Asia. The cable is projected to be operational in the second half of 2028.

“Chunghwa Telecom will continue to enhance its resilient network infrastructure by integrating submarine cables, fiber optics, mobile communications, satellites and microwave technologies — forming a comprehensive ‘Sea, Land, Sky, and Space’ network,” stated Alex Chien (簡志誠), Chairman of Chunghwa Telecom. “Leveraging Taiwan’s strategic position as an Asia-Pacific information hub, we aim to attract international operators to establish a presence in Taiwan, further advancing AI-driven innovations and co-creation services to meet the evolving needs of our customers.”

The E2A cable system will connect major digital hubs across Asia and North America, with landing points in Toucheng Township (頭城) in Yilan County, South Korea’s Busan, Japan’s Chiba, and Morro Bay in California. Furthermore, it will integrate with other upcoming cables in Taiwan, such as SJC2 and Apricot, providing diverse connectivity options.

This initiative is set to solidify Taiwan’s position as a critical submarine cable hub within the Asia-Pacific region, enhancing the company’s overall network resilience and providing ample bandwidth to meet growing demand. The costs associated with the submarine cable will be shared among the consortium members.

With a proven track record, Chunghwa Telecom has already invested in over 30 global submarine cables, with approximately 14 landing in Taiwan. This year, the company has allocated a budget of NT$32.36 billion for capital expenditure, marking a 12.3 percent increase from the previous year. A significant portion of this, a 25.2 percent increase to NT$23.98 billion, will be dedicated to non-mobile capital expenditure, supporting investments in AI, data centers, and the new submarine cable projects.