Taiwan has been well-known as the global leading OEM and ODM in the ICT industries. Recent years, fast-growing contenders in emerging countries have been challenging its status quo, forcing ICT products to turn into a red ocean market. Taiwan’s ICT companies are anxiously searching for the next blue ocean market. Seeing the strong potential in the digital health industry, driven by the irreversible trend of fast aging and rising diabetes and chronic disease population, many Taiwanese companies, together with the Taiwanese government, have identified it as the next big thing to be built on top of their ICT competitive strengths. This research aims to provide guidelines to develop a business ecosystem framework for the digital health industry in Taiwan through an in-depth analysis of objective data. It will also identify challenges and opportunities for this business ecosystem and make specific recommendations that could help best leverage Taiwan’s competitive strengths in high-tech and medical device companies and the national healthcare system to achieve success in the upcoming digital health market worldwide.