To enhance the competence of national defense technology, establish a self-reliant defense industry, expand national defense and military and civilian dual use technology, the National Chung Shan Institute of Science and Technology (hereinafter referred to as the “NCSIST”) is hereby established and this Act is hereby adopted.

NCSIST is an administrative corporation; the Ministry of National Defense (hereinafter referred to as the “MND”) is the competent supervisory authority of NCSIST.

Paragraph (1)
NCSIST is in charge of the following affairs:
Subparagraph (1)
Researching and developing, manufacturing, and selling defense technology and major weapon equipment.
Subparagraph (2)
Researching and developing, manufacturing, and selling military and civilian dual use technology.
Subparagraph (3)
Engaging in domestic and international technology cooperation, information exchange and promotion.
Subparagraph (4)
Engaging in domestic and international technology transfer, technical services, and industrial services.
Subparagraph (5)
Nurturing talents in defense technology.
Subparagraph (6)
Carrying out important national defense military facilities engineering.
Subparagraph (7)
Cooperating with the MND in major demonstration and urgent operational readiness.
Subparagraph (8)
Other matters relating to the objectives of establishing NCSIST.
Paragraph (2)
The regulations concerning sales, technological cooperation, technology transfer, and technical services specified in Paragraph 1 to 4 of the preceding paragraph shall be established by the MND.
Paragraph (3)
All the matters specified in Paragraph 1 involving state secrets, military secrets, or defense secrets shall be executed under the level of classification approved by the Ministry of National Defense in accordance with the relevant regulations of the Armaments Bureau and its affiliated units. NCSIST is liable for supervising and keeping confidential information security.

NCSIST is regarded as a government institution while conducting the procurement under Subparagraph 3 of Paragraph 1 in Article 105 of the Government Procurement Act, hereby the MND is its administrative authority.

Paragraph (1)
NCSIST is funded by:
Subparagraph (1)
Budgets approved and allocated by the government and donations (subsidies) from the government.
Subparagraph (2)
Donations from domestic and foreign, public and private institutions and groups and individuals.
Subparagraph (3)
Income from the research entrusted to NCSIST and the services provided by NCSIST.
Subparagraph (4)
Income from operations and research accomplishments.
Subparagraph (5)
Other income.
Paragraph (2)
The donations (subsidies) specified in Subparagraph 1 of the preceding Paragraph based on 3 percent of the national defense annual budget from MND are adjusted subject to the advanced research topics of national defense technology or the approval of production capability maintenance program proposed by NCSIST.
Paragraph (3)
The donations specified in Subparagraph 2 of Paragraph 1 are regarded as the donations to the government.
Paragraph (4)
The donations (subsidies) specified in Subparagraph 1 of Paragraph 1 that the entrusted manufacturing fee paid by MND is excluded.

Paragraph (1)
NCSIST shall adopt its articles of incorporation and the rules and regulations governing the management of personnel, accounting system, internal control, auditing and others, and shall submit them to the board of directors for approval and therefore submit them to MND for reference. The NCSIST rules and regulations relating to Paragraph 2 of Article 3 shall be approved by MND.
Paragraph (2)
NCSIST may adopt the rules and regulations governing the public functions it performs within the scope of relevant laws or legal orders, and shall submit them to the board of directors for approval and thereafter submit them to MND for reference.