The FORMOSAT-5 is an optical remote sensing satellite with PAN 2m and MS 4m resolution, which is under development by the National Space Organization (NSPO) in Taiwan. The payload consists of one Panchromatic (PAN) band with 12,000 pixels and four Multi-Spectrum (MS) bands with 6000 pixels in the remote sensing instrument. The image data compression method complies with the Consultative Committee for Space Data Systems (CCSDS) standards1,2. The compression ratio can be 1.5 for lossless compression, 3.75 or 7.5 for lossy compression. The Xilinx Virtex-5Q FPGA, XQR5VFX130 is used to achieve near real time compression.