Transportation Committee of Taiwan's Congress Approves Draft Amendments to Taiwan's Main Telecommunications Legislation to Ease Chairman-Nationality Requirements and Foreign Investment Caps for Satellite Communications Network Operators

Under Taiwan's current telecommunications legislation, the Telecommunications Management Act (TMA), only a Taiwan-incorporated company limited by shares may apply to Taiwan's main telecommunications regulator, the National Communications Commission (���NCC���), to establish a public telecommunications network using frequencies or telecommunications numbers. The TMA further imposes chairman-nationality requirements and foreign-investment restrictions on such a company: (i) its chairman must hold Republic of China (Taiwan) nationality; and (ii) direct foreign investment in the company may not exceed 49% of its total capital and the combined direct and indirect foreign investment may not exceed 60% of its total capital.

The chairman-nationality requirements and foreign investment caps described above have long been regarded as a key regulatory obstacle to the entry of global low-earth-orbit (LEO) satellite communications network operators into Taiwan's telecommunications market.

On 13 July 2026, the Transportation Committee of Taiwan's Legislative Yuan (the ���Congress���) completed its committee-level review of draft amendments to the TMA that would authorize the NCC to exempt foreign satellite communications network operators from the chairman-nationality requirements and foreign investment caps, after considering factors including the security of public telecommunications networks, the utilization of telecommunications resources, the overall development of Taiwan's telecommunications services market, national security, and other public interest considerations. The proposed amendments are intended to strengthen the overall resilience of Taiwan's communications networks, ensuring that Taiwan retains a secure, available communications network in the event of an emergency, such as war or a major disaster.

The draft amendments remain subject to second and third readings on the floor of the Congress, and will not take effect unless and until passed on third reading and subsequently promulgated by the President.

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English translations of telecommunications and media laws and regulations are available from YANGMING PARTNERS��� Legal Support Department. This publication is intended to highlight selected legal developments and not to be comprehensive nor to provide legal advice. If you have any questions on issues reported here or if you have any issues you would like to see covered in future editions, please contact the editors: Robert C. Lee, at +886-2-8725-6601, rclee@yangminglaw.com If you are interested in subscribing to any of our newsletters, please click here.