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Taiwan to launch US$180M investment in domestic rocket program

Bryan Chuang, Taipei; Elaine Chen, DIGITIMES Asia 0

Taiwan's Legislative Yuan is set to open its new session on September 19, with top priority given to reviewing the central government's proposed budget for 2026. Among the notable items on the docket is a significant investment in the island's nascent space ambitions.

According to the budget proposal recently submitted by the National Science and Technology Council (NSTC), the Taiwan Space Agency (TASA) is slated to receive NT$5.863 billion (approx. US$194 million) in 2026 for its space development programs. A key focus of this funding will be the advancement of rocket technology capable of carrying payloads of up to 200 kilograms into orbit.

For the first time, Taiwan is aiming to complete a Preliminary Design Review (PDR) for a full-scale suborbital rocket in 2026, including simulations of its fuel line systems and ground testing. If successful, this will mark a major milestone in the country's space development roadmap.

A regional race for reusable rockets

Taiwan's aspirations echo the success of SpaceX in the US, which has revolutionized the space industry through reusable rocket technology. SpaceX not only launches commercial, military, meteorological, and communications satellites into orbit but has also sent a Tesla vehicle and even human ashes into space. Some customers have reportedly been able to track the orbital path of their loved ones' ashes via mobile apps. SpaceX's marketing emphasizes a poetic vision: that by simply looking up at the sky, one can feel connected to the departed — a celestial metaphor for heaven.

Inspired by this model, several nations in Asia are moving to develop reusable or mass-producible launch vehicles, seeking to reduce costs and increase launch frequency through standardized manufacturing.

However, building rockets demands not only cutting-edge technology and vast engineering capabilities but also political and financial commitment. For countries where space programs are primarily government-funded and not yet commercialized — including Taiwan and South Korea — securing legislative support can make or break such ambitious ventures.

South Korea's space agency, KASA, has faced similar hurdles. While it plans to follow up on its Nuri (KSLV-II) launch vehicle with new reusable rocket technologies akin to SpaceX's Falcon 9, local media reports that both programs are currently facing budgetary and logistical roadblocks. South Korea, which has already achieved orbital launch capabilities, is slated to carry out its sixth Nuri launch in 2027. KASA's proposed budget for 2026 stands at KRW1.1 trillion (approx. US$797 million), over four times that of Taiwan's TASA.

Taiwan's rocket program: still in its infancy

By comparison, Taiwan's space program is still in its formative phase. The 2026 budget earmarks around US$200 million for all space-related initiatives, including rockets, remote sensing satellites, and low-Earth orbit systems. If Taiwan commits to full-scale rocket development, officials acknowledge that funding levels would need to increase significantly. Such an expansion could become politically controversial, with critics likely to label it a "money pit" unless cross-party support is secured in the legislature.

The NSTC budget outlines plans to establish a dedicated rocket assembly and testing facility, incorporating capabilities from structural fabrication and propulsion testing to launch readiness and orbital deployment. If approved, Taiwan will aim to complete a PDR for a suborbital launch vehicle in 2026. This includes CAD-based design schematics, aerodynamic modeling, turbo-pump size analysis, flow path simulations, and integrated ground tests.

TASA also intends to invest NT$860 million in building Taiwan's first orbital-class rocket prototype. Objectives for this phase include structural development and testing, liquid-fuel propulsion system engineering, turbo-pump and flow valve validation, guidance and navigation systems, and avionics integration. Infrastructure to support ground testing through to flight trials will also be constructed.

Building a domestic space ecosystem

Beyond technology, the NSTC emphasizes the importance of building a domestic industrial base to support Taiwan's space goals. The proposed rocket will rely on local suppliers for critical systems, including power distribution, inertial measurement units, actuators, and flight control algorithms. This industrial involvement is seen as crucial to lowering costs and accelerating development timelines.

To that end, the government plans to spend NT$130 million to develop a rocket systems integration and testing hub in Shalun, Tainan. The facility will serve as a cornerstone of Taiwan's space R&D infrastructure.

As Taiwan inches closer to its first orbital launch, much remains uncertain — from technical challenges to political will. But for a country seeking to assert its technological independence in an increasingly contested region, space may soon become the next strategic frontier.

Article edited by Jack Wu