With the rapid advancement of network communication technologies, Low-Earth Orbit (LEO) satellites have emerged as a crucial part of the global communication infrastructure. From enabling real-time connectivity in remote scenic spots to powering advanced AI and IoT applications, LEO satellites are transforming how we think about communication networks. Their fast deployment, wide coverage, and low latency make them indispensable in bridging connectivity gaps and supporting future technological revolutions.

What are LEO Satellites?

LEO satellites are artificial satellites that operate at altitudes of 1,500 km or less above the Earth's surface. Unlike traditional geostationary satellites, which operate at higher altitudes, LEO satellites are closer to Earth, resulting in lower latency and enhanced communication efficiency.

1. Low Transmission Latency

Signal transmission times are reduced to 20–50 milliseconds, making LEO satellites ideal for real-time communication.

2. Flexible Deployment

Free from geographic and infrastructure limitations, LEO satellites can deliver coverage to remote and underserved regions. In disaster scenarios, they can be quickly deployed to restore communication services.

3. Lower Deployment Costs

Smaller, lower-cost satellites and reduced launch expenses enable mass production and widespread deployment.

Development Trends in LEO Satellites

The global LEO satellite market is experiencing rapid growth, with a projected market size of $280 billion by 2029 and a 10% compound annual growth rate. This growth is fueled by increasing communication demands and expanding application areas, including mobile platforms such as cars, planes, and ships.

Comparison of Major Global Players

Driving the IoT Revolution

LEO satellites provide global communication coverage, particularly in areas where traditional infrastructure is unavailable, such as oceans, deserts, and mountainous regions. They enable:

• Real-time environmental monitoring (e.g., soil conditions, weather data, wildlife tracking).
• Remote management of renewable energy sources, oil platforms, and maritime operations.
• Enhanced connectivity for IoT applications in agriculture, logistics, and transportation.

LEO Satellite Supply Chain

Taiwan plays a key role in the upstream and midstream portions of the LEO satellite supply chain, supplying components, equipment, and system integration services.

Upstream: Component and Equipment Suppliers

1. Component Manufacturers

In Taiwan’s upstream supply chain, the industry primarily plays the role of a component supplier. For example:

• PCB manufacturers, such as Elite Material (2383) and Taiwan Union (6274) produce high-frequency copper-clad laminates, which are essential materials for satellite communications.
• Wonderful Hi-tech (6190) supplies high-speed cables and has already entered the Starlink supply chain.
• New Era (4909) provides high-frequency communication materials, including microwave communication substrates.
• Ventec International (6672) supplies composite materials, offering special adhesive solutions required for satellite applications.

These companies play a crucial role in enhancing Taiwan’s position in the global satellite communications supply chain.

2. Equipment Suppliers

• Tong Hsing (6271) has successfully entered the supply chain for high-frequency wireless communication modules.
• Ubiqconn (6928) provides customizable satellite communication solutions, including satellite gateways, satellite signal reception antennas, and VoIP (Voice over Internet Protocol) services.
• Rafael Microelectronics (6568) specializes in satellite communication equipment, with control chips used in downconverter switches, downconverters, and other high-frequency satellite applications.

These companies contribute to Taiwan's growing presence in the satellite communication industry, offering key technologies across different segments of the supply chain.

Midstream: Launch Services and System Integration

1. Launch Services

• Aerospace Industrial (2634) has long been focused on aerospace technology development and is currently involved in structural development projects for low Earth orbit (LEO) satellites.
• TiSPACE (Taiwan Innovative Space, Ltd.) is actively engaged in the development of rockets and small satellite launch services, contributing to Taiwan's growing presence in the space industry.

2. System Integration

• Microelectronics (2314) collaborates with international partners to provide satellite antennas and ground signal transmission system integration services.
• Syscom Computer (2453) offers satellite mission control integration solutions, including satellite monitoring and image data processing & analysis.
• Wistron NeWeb (WNC) is actively working to enter the Starlink supply chain, supplying satellite signal receivers and wireless communication integration systems.
• Sysgration (5309), AcBel Polytech (6282), and Chicony Power (6412) provide power supply and management systems for satellite applications.
• Universal Microwave (3491) specializes in microwave and millimeter-wave communication technologies, supplying satellite communication components and modules, such as satellite communication filters.

Conclusion