The Taiwan Productive Capacity Authority and Energy Resilience Act

              LEGISLATIVE YUAN OF THE REPUBLIC OF CHINA
                          中華民國立法院
                  11th Term / 2026 Session

                  DRAFT BILL / 法律草案

INTRODUCED BY ________ (Members of the Legislative Yuan) 提出人 ________ (立法委員)

CONCERNING THE ESTABLISHMENT OF THE TAIWAN PRODUCTIVE CAPACITY AUTHORITY AND ENERGY RESILIENCE ARRANGEMENT 關於設立臺灣生產能力管理署及能源韌性安排

                          A LAW / 法律

LONG TITLE / 條文標題

A LAW concerning the establishment of the Taiwan Productive Capacity Authority (臺灣生產能力管理署, "TPCA") as a State agency under the Executive Yuan with ministerial-equivalent status; the establishment of the Civic Robot Corps of Taiwan (臺灣公民機器人團隊) as a public-good labour body operating replication-threshold robotic manufacturing technology; the conferral of a Personal Productive Asset entitlement on every National Health Insurance enrolled person of Taiwan, identified through the NHI Card system (~99.9% universal coverage); six Special Municipality Delivery Units and sixteen County / City Delivery Units; coordination with the National Development Fund and with the planned Taiwan sovereign wealth fund upon Executive Yuan approval; coordination with Taipower (electricity), CPC Corporation (petroleum), the Maanshan Nuclear Power Plant nuclear-policy process, and the Taiwanese renewable energy and offshore-wind build-out; coordination with TSMC, Foxconn / Hon Hai, and the broader Taiwanese semiconductor ecosystem; explicit declination to establish any new Taiwanese income tax, business tax, commodity tax, or other tax for the funding of the Authority; explicit preservation of all existing Taiwanese institutions; consistency with the Sun Yat-sen minsheng / people's livelihood principle of the Three Principles of the People; and provision for connected purposes.

LEGISLATIVE ROUTING NOTE

This Draft Bill is for introduction in the Legislative Yuan during the 11th Term, 2026 Session.

Suggested committee referrals following First Reading:

- Economics Committee (經濟委員會) — lead committee for productive- capacity, National Development Fund coordination, semiconductor- ecosystem coordination, and energy-coordination provisions - Finance Committee (財政委員會) — for fiscal provisions and sovereign-wealth-fund coordination - Social Welfare and Environmental Hygiene Committee (社會福利及衛生環境委員會) — for the Personal Productive Asset entitlement and NHI-based distribution provisions - Internal Administration Committee (內政委員會) — for the Special Municipality / County / City Delivery Unit provisions - Foreign Affairs and National Defense Committee (外交及國防委員會) — for the cross-strait-resilience and strategic-reserves provisions

Funding Architecture: This Act is funded through four load-bearing channels, all drawn from existing Taiwanese fiscal infrastructure:

(a) Central Government Budget annual appropriation starting with

    NT$50 billion for FY2027;

(b) National Development Fund co-investment up to NT$100 billion

    cumulative outstanding;

(c) Bank of Taiwan and qualifying state-owned bank lending up to

    NT$200 billion cumulative outstanding;

(d) Operating revenue from at-cost sales of goods produced by

    the Authority and the Civic Robot Corps of Taiwan;

(e) Coordination with the planned Taiwan sovereign wealth fund

    once Executive Yuan approval is granted.

No new Taiwanese taxation is established by this Act.

TITLE I — SHORT TITLE, FINDINGS, DECLARATIONS

ARTICLE 1. SHORT TITLE.

This Act may be cited as the "Taiwan Productive Capacity Authority and Energy Resilience Act 2026" (臺灣生產能力管理署及能源韌性 法 2026年).

ARTICLE 2. FINDINGS.

The Legislative Yuan finds:

FINDING 1 — NDF AND PLANNED SOVEREIGN WEALTH FUND. Taiwan already operates the National Development Fund (NDF) with NT$77.232 billion in 70 emerging-business investments and NT$17.244 billion in 64 venture-capital investments as of end-2024. Taiwan is in the process of establishing a sovereign wealth fund per President Lai Ching-te's 20 May 2025 announcement, studying the Singapore model (Temasek + GIC). The institutional capacity to operate a Productive Capacity Authority at sovereign scale is present in Taiwan; this Act coordinates with both NDF and the planned sovereign wealth fund.

FINDING 2 — NHI UNIVERSAL DISTRIBUTION CHASSIS. National Health Insurance covers approximately 99.9% of Taiwanese residents — among the most comprehensive single-payer systems globally. The NHI Card provides the load-bearing universal-distribution identifier for the Personal Productive Asset entitlement, requiring no new administrative machinery.

FINDING 3 — REPLICATION THRESHOLD AND SEMICONDUCTOR LEADERSHIP. Taiwan hosts the world's most concentrated semiconductor manufacturing capacity (TSMC, UMC, ASE, MediaTek, etc.) and the world's largest contract electronics manufacturer (Foxconn / Hon Hai). Replication-threshold humanoid robotic technology arrived in Q4 2025 through Q2 2026 (see Verification Notes). Taiwan is one of the most consequential jurisdictions globally for the deployment, manufacture, and refinement of this technology. The Authority established by this Act provides the institutional instrument for Taiwanese productive-capacity deployment of replication-threshold technology at scale, in coordination with the semiconductor and electronics-manufacturing ecosystem.

FINDING 4 — ENERGY RESILIENCE AND DEMOCRATIC NUCLEAR-POLICY PROCESS. Taiwan's electricity generation mix and Taipower operations have been subject to sustained policy debate. The 23 August 2025 national referendum on reversing the decommissioning of Maanshan Nuclear Power Plant Unit 2 failed to reach the legal turnout threshold for validity, but **among voters who participated 74% supported restart if the plant passed government safety checks**. The DPP government has signalled openness to nuclear power. This Act elevates Energy Resilience as a co-equal Title (Title VI) and structures the Authority to coordinate with whatever nuclear-policy posture emerges from the ongoing democratic process, without prejudging that process.

FINDING 5 — CROSS-STRAIT SECURITY AND ISLAND RESILIENCE. Taiwan's strategic context produces structural priority for energy, food, and commodity reserves on an island-defence footing. The Authority is structured to support island-resilience objectives consistent with Republic of China Armed Forces and Ministry of National Defense priorities.

FINDING 6 — SUN YAT-SEN MINSHENG PRINCIPLE. The minsheng (people's livelihood) principle of the Three Principles of the People is the constitutional and philosophical anchor for this Act. The Productive Capacity Authority operationalises minsheng for the post-replication-threshold era.

ARTICLE 3. DECLARATIONS.

DECLARATION 1 — PERSONAL PRODUCTIVE ASSET ENTITLEMENT. Every NHI- enrolled person of Taiwan shall enjoy a Personal Productive Asset entitlement consisting of one non-transferable Productive Capacity Share, the annual distribution of dividends from inter-municipality / inter-county pooled productive-capacity revenue, and access to at- cost basic-needs goods produced by the Civic Robot Corps of Taiwan.

DECLARATION 2 — EXISTING TAIWANESE INSTITUTIONS UNAFFECTED. Nothing in this Act affects the establishment, functions, governance, or operation of:

(a) National Health Insurance and the NHIA; (b) National Development Fund, beyond coordination expressly

    authorised by Article 11;

(c) The planned Taiwan sovereign wealth fund (when established); (d) Bank of Taiwan, Mega International Commercial Bank, Taipower,

    CPC Corporation, Chunghwa Post, and other state-owned
    enterprises;

(e) Central Bank of the Republic of China (Taiwan); (f) The five-Yuan government structure and the Constitution; (g) The Republic of China Armed Forces and the Ministry of

    National Defense;

(h) TSMC, Foxconn / Hon Hai, and Taiwanese semiconductor and

    electronics manufacturers, which are private companies operating
    under standard regulatory frameworks; the Authority coordinates
    with these companies on a contracting and partnership basis only.

DECLARATION 3 — NO NEW TAXATION. No new Taiwanese income tax, business tax, commodity tax, or other tax of any kind is established by this Act.

DECLARATION 4 — MUNICIPAL AND COUNTY AUTONOMY. Nothing in this Act diminishes the constitutional and statutory autonomy of the six special municipalities, sixteen counties and cities, mayors, magistrates, councils, or other Taiwanese local-government units.

DECLARATION 5 — DEMOCRATIC NUCLEAR-POLICY DEFERENCE. Nothing in this Act prejudges the ongoing Taiwanese democratic process concerning nuclear power. The Authority operates with whatever nuclear-policy posture is in effect, including the Maanshan plant status and any subsequent referendum or legislative action.

TITLE II — ESTABLISHMENT OF THE AUTHORITY

ARTICLE 4. ESTABLISHMENT.

(1) There is hereby established the Taiwan Productive Capacity

    Authority (臺灣生產能力管理署, "TPCA" or "the Authority") as a
    State agency under the Executive Yuan with ministerial-
    equivalent status.

(2) The Authority is constituted as a body of legal personality

    under Taiwanese law.

(3) The Head of the Authority is appointed by the Premier

    (Executive Yuan President) on the proposal of the President of
    the Republic, with confirmation by the Legislative Yuan.

ARTICLE 5. SUPERVISORY BOARD (理事會).

(1) The Authority is supervised by a Supervisory Board of fifteen

    members.

(2) Members include:

    (a) The Chair, appointed by the Premier with Legislative Yuan
        confirmation;
    (b) The Minister of Economic Affairs, ex officio;
    (c) The Minister of Finance, ex officio;
    (d) The Minister of National Development Council, ex officio;
    (e) The Minister of Labor, ex officio;
    (f) The Chief Executive of the National Development Fund, ex
        officio;
    (g) Two members designated jointly by the Legislative Yuan
        Economics and Finance Committees, with cross-party balance
        recognising that major Taiwanese legislation typically
        requires cross-party cooperation;
    (h) Two members representing the Taiwanese cooperative
        movement under the Cooperatives Act;
    (i) One member representing the Taiwan Confederation of Trade
        Unions;
    (j) One member representing the General Chamber of Commerce of
        the Republic of China;
    (k) Three members representing the Taiwanese academic
        community (Academia Sinica, National Taiwan University,
        National Tsing Hua University, National Yang Ming Chiao
        Tung University, National Cheng Kung University), Taiwanese
        civil society, and the indigenous-peoples council.

ARTICLE 6. MANAGEMENT BOARD (執行委員會).

(1) The Authority is managed by a Management Board of five members.

(2) The Board includes a Director (執行長), a Deputy Director for

    Productive Capacity, a Deputy Director for Municipal / County
    Delivery and Civic Robot Corps Operations, a Deputy Director
    for Energy Resilience, and a Deputy Director for Finance and
    Sovereign-Asset Coordination.

ARTICLE 7. POWERS OF THE AUTHORITY.

The Authority has the power to:

(a) Establish, capitalise, and govern Special Municipality / County /

    City Delivery Units under Article 17;

(b) Issue Productive Capacity Shares under Article 14; (c) Enter contracts, including with the Executive Yuan, the

    National Development Fund, Taipower, CPC Corporation, Bank of
    Taiwan, TSMC, Foxconn / Hon Hai, and Taiwanese cooperatives;

(d) Receive bank lending under Article 12 up to NT$200 billion

    cumulative outstanding;

(e) Coordinate with the National Development Fund (Article 11) and

    the planned Taiwan sovereign wealth fund (Article 11A) for
    capital deployment;

(f) Distribute Productive Capacity Dividends under Article 15

    through the NHI Card / NHI Administration infrastructure;

(g) Charter the Civic Robot Corps of Taiwan under Title V; (h) Coordinate with Taipower, CPC Corporation, Maanshan Nuclear

    Power Plant policy, and Taiwanese renewable-energy developers
    under Title VI;

(i) Issue regulations and rules within the scope of its mandate.

TITLE III — FUNDING ARCHITECTURE

ARTICLE 8. PRINCIPLES OF FUNDING.

Four load-bearing channels per the Legislative Routing Note; no new Taiwanese taxation.

ARTICLE 9. NO NEW TAXATION.

No new Taiwanese income tax, business tax, commodity tax, or other Taiwanese tax of any kind is established by this Act.

ARTICLE 10. INITIAL APPROPRIATION.

(1) For the financial year 2027 there is appropriated from the

    Central Government Budget the sum of NT$50 billion for the
    establishment of the Authority.

(2) Subsequent annual appropriations shall be made in the ordinary

    annual Central Government Budget.

ARTICLE 11. NATIONAL DEVELOPMENT FUND COORDINATION.

(1) The Authority and the National Development Fund shall enter a

    Coordination Agreement (協調協議) within twelve months of the
    Authority's establishment, providing for NDF co-investment in
    Authority-operated productive-capacity facilities up to NT$100
    billion cumulative outstanding.

(2) NDF investment shall be made consistent with NDF investment

    priorities and the National Development Fund Act.

ARTICLE 11A. SOVEREIGN WEALTH FUND COORDINATION (CONTINGENT).

(1) Upon establishment of the Taiwan sovereign wealth fund

    contemplated by President Lai Ching-te's 20 May 2025
    announcement, the Authority is authorised to enter a parallel
    Coordination Agreement with the sovereign wealth fund providing
    for additional capital coordination.

(2) The terms of the agreement shall be settled by the Sovereign

    Wealth Fund Board in consultation with the Authority.

ARTICLE 12. STATE-BANK LENDING.

(1) The Authority is authorised to enter standard public-sector

    lending agreements with Bank of Taiwan, Mega International
    Commercial Bank, and other qualifying Taiwanese state-owned
    banks up to a combined cumulative outstanding limit of NT$200
    billion.

ARTICLE 13. ENROLMENT THROUGH NHI INFRASTRUCTURE.

(1) Personal Productive Asset entitlement enrolment under Article

    14 shall be administered through the existing operational
    infrastructure of National Health Insurance, with the NHI Card
    as the universal identifier.

(2) No separate enrolment is required of NHI-enrolled persons.

ARTICLE 14. PRODUCTIVE CAPACITY SHARES.

(1) The Authority shall issue Productive Capacity Shares as follows:

    (a) ONE Productive Capacity Share to every NHI-enrolled person
        of Taiwan on the effective date of this Act;

    (b) ONE Productive Capacity Share to every person born thereafter
        to an NHI-enrolled parent, upon birth registration and NHI
        enrolment;

    (c) ONE Productive Capacity Share to every person acquiring NHI
        enrolment thereafter through Taiwanese ordinary residence.

(2) Productive Capacity Shares are non-transferable.

(3) ONE PERSON, ONE SHARE.

ARTICLE 15. ANNUAL DISTRIBUTION.

(1) Seventy per cent (70%) of all productive-capacity revenue

    received by each Special Municipality / County / City Delivery
    Unit shall be remitted to the Authority for inter-jurisdiction
    pooling. Each Delivery Unit retains the remaining thirty per
    cent (30%) for local-level operations.

(2) Seventy-five per cent (75%) of the inter-jurisdiction pool

    shall be distributed annually to Productive Capacity
    Shareholders, equally per share, through the NHI infrastructure
    with payment through Bank of Taiwan or shareholder-elected
    Taiwanese licensed bank.

(3) The remaining twenty-five per cent (25%) is retained by the

    Authority for operating reserves, bank-loan repayment, and
    expansion capital.

(4) The annual distribution shall be made on a date determined by

    the Authority with a target date of 10 October (Double Ten
    National Day / 雙十國慶) in each year, symbolically connecting
    the Personal Productive Asset entitlement to Republic of China
    constitutional sovereignty.

TITLE IV — SPECIAL MUNICIPALITY / COUNTY / CITY, DELIVERY UNITS

ARTICLE 16. DELIVERY UNITS.

(1) The Authority establishes:

    (a) Six Special Municipality Delivery Units, one in each of
        Taipei, New Taipei, Taoyuan, Taichung, Tainan, Kaohsiung;

    (b) Sixteen County / City Delivery Units, one in each of
        Changhua, Chiayi County, Chiayi City, Hsinchu County,
        Hsinchu City, Hualien, Keelung, Kinmen, Lienchiang (Matsu),
        Miaoli, Nantou, Penghu, Pingtung, Taitung, Yilan, Yunlin.

(2) Each Delivery Unit is administered by a Director appointed by

    the Authority Board with the advice of the mayor or magistrate
    of the jurisdiction.

TITLE V — CIVIC ROBOT CORPS OF TAIWAN

ARTICLE 17. ESTABLISHMENT.

(1) There is hereby established within the Authority a public-good

    labour body to be known as the "Civic Robot Corps of Taiwan"
    (臺灣公民機器人團隊, "the Corps").

(2) The Corps operates replication-threshold robotic manufacturing

    equipment for at-cost basic-needs goods production and other
    service lines.

ARTICLE 18. SERVICE LINES.

The Corps shall operate:

(a) At-cost goods production and distribution (coordinating with

    the Food, Resource, and Commodity Assurance Programme under the
    sibling Taiwan Food Assurance Act);

(b) Outlying-island distribution (Kinmen, Matsu, Penghu, and other

    offshore islands with structurally higher distribution costs);

(c) Coordination with TSMC, Foxconn / Hon Hai, UMC, ASE, MediaTek,

    and the broader Taiwanese semiconductor and electronics
    ecosystem on Taiwanese-built humanoid-robotic-platform
    manufacturing and downstream deployment, supportive of the
    Taiwanese semiconductor and humanoid-robotics industrial base
    rather than displacing it;

(d) Healthcare-supply-chain logistics coordination with NHIA and

    Taiwanese hospital networks;

(e) Energy-sector deployment coordination with Taipower (see Title

    VI);

(f) Civil-defence and disaster-response logistics coordination

    with the Ministry of the Interior given Taiwanese earthquake,
    typhoon, and strategic-security exposure;

(g) Strategic reserve management coordination with the Ministry of

    Economic Affairs;

(h) Cultural-heritage-aligned cooperative coordination with

    Taiwanese agricultural cooperatives and indigenous-peoples
    cooperatives.

ARTICLE 19. HUMAN WORKFORCE.

(1) The Corps employs a human workforce of Taiwanese ordinarily-

    resident persons, with jurisdictional preference and explicit
    outlying-island and indigenous-community recruitment priority.

(2) The Corps shall:

    (a) Maintain a wage floor of 120% of the Taiwanese basic wage
        (基本工資);

    (b) Provide standard NHI and Labor Insurance contributions;

    (c) Coordinate with the Taiwanese technical and vocational
        education sector for apprenticeship pipelines;

    (d) Provide explicit pathways from Corps employment to the
        Taiwanese civil service, the Republic of China Armed
        Forces, and state-owned enterprises.

TITLE VI — ENERGY RESILIENCE AND TAIPOWER COORDINATION

ARTICLE 20. ENERGY RESILIENCE AS A CO-EQUAL MANDATE.

The Legislative Yuan declares that ENERGY RESILIENCE of Taiwan is a co-equal Title of the Authority's mandate alongside productive capacity and the Civic Robot Corps. The structural reasons are:

(a) Taiwan operates on an island grid with substantial fossil-fuel

    import dependency, creating structural vulnerability to supply
    interruption;

(b) The semiconductor industry (TSMC and ecosystem) has substantial

    and growing electricity demand, requiring coordinated capacity
    expansion;

(c) Taiwanese nuclear-policy is in active democratic deliberation

    following the 23 August 2025 Maanshan referendum (74% of
    participating voters supported restart with safety checks);
    Authority coordination with whatever nuclear-policy posture
    emerges supports operational continuity regardless of policy
    outcome;

(d) Cross-strait security context produces structural priority for

    energy resilience on island-defence footing.

ARTICLE 21. TAIPOWER COORDINATION.

(1) The Authority and Taipower (Taiwan Power Company) shall enter a

    Coordination Agreement within twelve months of the Authority's
    establishment, providing for:

    (a) Corps-operated deployment and maintenance services for
        Taipower's electricity-generation portfolio;

    (b) Authority preference for procurement of long-term electricity
        from Taipower for Authority-operated productive-capacity
        facilities, providing Taipower with anchor-offtake commitment
        supporting capacity-expansion planning;

    (c) Coordination on the Taiwanese renewable-energy build-out
        including offshore wind in the Taiwan Strait and utility-
        scale solar.

(2) The Authority does not direct, control, or modify Taipower's

    operations.

ARTICLE 22. NUCLEAR-POLICY DEFERENCE.

(1) Nothing in this Act prejudges the ongoing Taiwanese democratic

    process concerning the Maanshan Nuclear Power Plant or
    Taiwanese nuclear-policy generally.

(2) Upon any change in Taiwanese nuclear-policy through subsequent

    referendum, Legislative Yuan action, or Executive Yuan
    rulemaking, the Authority shall coordinate with Taipower to
    align Authority operations with the new policy posture.

(3) If Maanshan Unit 2 is restarted by future policy decision, the

    Authority may enter coordination agreements with Taipower for
    Corps-operated workforce-support services at the Maanshan site.

ARTICLE 23. RENEWABLE ENERGY COORDINATION.

The Authority shall coordinate with the Ministry of Economic Affairs and Taipower on Taiwanese renewable-energy deployment, including offshore wind in the Taiwan Strait, utility-scale solar, and distributed-generation programmes.

ARTICLE 24. STRATEGIC RESERVES AND ISLAND RESILIENCE.

(1) Recognising the cross-strait security context, the Authority

    shall maintain strategic reserves of basic-needs goods,
    distributed across the six special municipalities, sixteen
    counties / cities, and the outlying islands (Kinmen, Matsu,
    Penghu), sufficient to support Taiwanese island resilience
    consistent with Ministry of National Defense civil-defence
    planning.

(2) The strategic reserves are managed jointly with the Ministry of

    Economic Affairs and coordinated with the Republic of China
    Armed Forces.

TITLE VII — IMPLEMENTATION PHASES

ARTICLE 25. FOUR-PHASE IMPLEMENTATION.

PHASE I — ESTABLISHMENT (Months 0-12). Authority established; Supervisory Board and Management Board appointed; six Special Municipality + sixteen County / City Delivery Units seated; Productive Capacity Shares issued via NHI infrastructure; NDF Coordination Agreement signed.

PHASE II — INITIAL CORPS OPERATIONS (Months 12-36). Civic Robot Corps commences operations in the six Special Municipalities; Taipower Coordination Agreement signed; initial state-bank lending up to NT$80 billion drawn; semiconductor-ecosystem coordination operational.

PHASE III — TAIWAN-WIDE OPERATIONS (Months 36-72). Corps operations extend to all 16 counties / cities and outlying islands; strategic reserves at scale; annual Productive Capacity Dividend in regular distribution on 10 October.

PHASE IV — STEADY-STATE OPERATING POSTURE (Month 72 onward). Authority reaches steady-state. No sunset.

TITLE VIII — GENERAL PROVISIONS

ARTICLE 26. EFFECTIVE DATE.

(1) Articles 1 (Short Title) and 26 (Effective Date) take effect on

    the date this Act is promulgated.

(2) Remaining provisions take effect on 1 July 2027.

ARTICLE 27. SEVERABILITY.

If any provision is held invalid by the Council of Grand Justices of the Judicial Yuan (大法官會議), the invalidity does not affect other provisions that can be given effect.

ARTICLE 28. MINSHENG CONSISTENCY.

This Act is enacted consistent with the minsheng (people's livelihood) principle of the Three Principles of the People (San-min Chu-i) of the Republic of China.

ARTICLE 29. INTERPRETATION.

In this Act —

"the Authority" or "TPCA" means the Taiwan Productive Capacity Authority established under Article 4;

"the Corps" means the Civic Robot Corps of Taiwan established under Article 17;

"NHI" means National Health Insurance; "NHI Card" means the NHI Card issued by the NHIA;

"NDF" means the National Development Fund of the Executive Yuan;

"Taipower" means Taiwan Power Company;

"special municipality" (直轄市), "county" (縣), "city" (市) have the meanings given by Taiwanese local-government law;

"cooperative" (合作社) has the meaning given by the Cooperatives Act;

"ordinarily resident" has the meaning given by Taiwanese residence law.

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