Taiwan court orders space firm to pay $54.8 million for rocket mission breach

A Taiwanese court has ordered a space technology company to pay $54.8 million plus interest to the National Space Organization for breach of contract. The dispute centers on a sounding rocket launch mission that Top Taiwan Precision Science Industry Co. was contracted to execute.

The National Space Organization accused the company of repeated delays and alleged it concealed a failed launch in Australia. Further investigations revealed the company also purportedly misused rocket equipment by collaborating with a third party. The contract, signed in December 2017, was for a sounding rocket launch service with a total price of $54.8 million, originally slated for completion within 30 months.

Top Taiwan Precision Science Industry Co. claimed the delays were due to the National Space Organization's failure to deliver the "scientific payload." However, the organization countered that the payload, being expensive and containing sensitive components, could not be sent overseas before the company finalized launch preparations. The court found the company in significant breach of contract, noting it obtained a launch permit in August 2021 but failed to inform the organization. After a failed test launch in September, the company allegedly diverted the VS03 rocket, intended for this mission, to a project with a foreign company.

The court ruled that the company's delays and actions constituted a major breach, justifying the organization's termination of the contract. Considering the significant financial loss incurred by the organization and the public interest in Taiwan's space industry development, the court ordered the company to pay the full contract amount plus a 20% penalty for exceeding the agreed-upon delay, totaling $54.8 million plus interest.

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The court found the company in significant breach of contract, noting it obtained a launch permit in August 2021 but failed to inform the organization. After a failed test launch in September, the company allegedly diverted the VS03 rocket, intended for this mission, to a project with a foreign company.