Starlink's entry into Taiwan is stuck on "100% foreign ownership"! Legislative Yuan debates easing restrictions on LEO satellites, fearing Musk's pro-China stance could become a national security loophole.

Why is Starlink delayed in coming to Taiwan? The Transportation Committee of the Legislative Yuan focused on the issue of relaxing regulations for low-earth orbit (LEO) satellites yesterday (22nd). Facing Starlink's insistence on "100% foreign ownership," the foreign investment cap under Taiwan's current Telecommunications Management Act has become the biggest obstacle. The NCC and the Ministry of Digital Affairs emphasized that a major legislative overhaul may not be necessary, suggesting that flexible mechanisms like trade agreements could provide a solution, provided that data sovereignty and cybersecurity are ensured. Meanwhile, legislators are caught in a fierce tug-of-war between "disaster communication resilience" and "concerns over Elon Musk's pro-China stance." (Previous coverage: Starlink also faces interference in Iran; how does Jack Dorsey's "Bitchat" break through via Bluetooth mesh networks?) (Background supplement: SpaceX accused of not providing "Starshield" satellite services to Taiwan; US lawmakers criticize Elon Musk for endangering Taiwan-US security.) Against the backdrop of frequent modern warfare and natural disasters, LEO satellites have become strategic infrastructure for countries to build "communication resilience." However, Starlink, a subsidiary of SpaceX—the company with the highest global market share—has yet to officially land in Taiwan. The Transportation Committee of the Legislative Yuan held a heated discussion on April 22, 2026, regarding the "relaxation of regulations for Starlink to enter Taiwan." This meeting revealed the complex three-way struggle between regulatory constraints, commercial negotiations, and national security. The biggest hurdle currently blocking Starlink from entering Taiwan's general consumer market lies in the strict provisions of Article 36 of the Telecommunications Management Act: telecommunications operators must be domestic companies, and direct foreign shareholding must not exceed 49%, with total direct and indirect shareholding not exceeding 60%. Minister of Digital Affairs Huang Yen-chi pointed out the core contradiction during the meeting: compared to OneWeb and Amazon Kuiper, which is expected to launch in Taiwan this year and is willing to accept an "agency model" in cooperation with domestic telecom operators, Starlink's stance is extremely rigid, favoring the establishment of a 100% foreign-owned company in Taiwan, which creates a significant gap with current regulations. Furthermore, Huang revealed that Taiwan's 4G/5G penetration rate has exceeded 99%, and in Starlink's commercial assessment, the "supplementary value" of the Taiwan market is limited; therefore, Taiwan has not been listed as a priority region for deployment. Regarding calls for a comprehensive legislative overhaul to accommodate Starlink, Acting Chairperson of the National Communications Commission (NCC) Chen Chung-shu provided a different solution. He stated that current regulations "can certainly be operated," and a major legislative overhaul may not be necessary. The NCC pointed out that by drawing on the relaxation models of Japan and South Korea, Taiwan could completely exempt foreign investment restrictions through diplomatic prerequisites such as a "Taiwan-US trade agreement." However, openness is by no means without a bottom line. If a purely foreign company were allowed to operate with 100% ownership without the participation of domestic operators, it would create hidden risks: - Data Sovereignty and National Security: Foreign investors must be required to set up ground stations (Gateways) locally. - Cybersecurity and Anti-Fraud: Starlink equipment has previously been used by fraud syndicates; purely foreign ownership would significantly increase the difficulty of communication supervision and crime prevention. This issue has sparked a fierce ideological battle among legislators from both ruling and opposition parties. Opposition legislators, including Huang Chien-hao and Ko Ju-chun, actively advocate for rapid relaxation through project-based approval or legislative amendments. They emphasize that once Taiwan's undersea cables are cut during wartime or natural disasters, LEO satellites will be the only lifeline. Seeing that neighboring countries like Japan, South Korea, and the Philippines have already introduced Starlink (Japan has even opened retail stores to sell equipment directly), Taiwan's progress is lagging significantly, which may exacerbate the digital divide between urban and rural areas. However, another group of legislators raised a profound "crisis of trust." Given that SpaceX CEO Elon Musk's past remarks have repeatedly been labeled as "pro-China," handing over Taiwan's critical wartime command and communication infrastructure entirely to a foreign-owned enterprise under his 100% control would undoubtedly be placing the throat of national security in someone else's hands. With Starlink's landing delayed, the Taiwan government is not putting all its eggs in one basket. Currently, the domestic LEO satellite deployment is adopting a "multi-track" strategy: - Introducing other foreign companies: OneWeb, represented by Chunghwa Telecom, has already built 773 terminal sites across Taiwan and was successfully tested during the recent Hualien earthquake; Amazon Kuiper is also scheduled to launch services this year. -