5G, low earth orbit, spaceX, starlink, Foxconn
Source: Pixabay

According to Wealth Magazine, Elon Musk’s SpaceX is said to have come to Taiwan in search of long-term cooperations earlier this year.

SpaceX, the world’s largest low earth orbit satellite designer and launcher, is planning to build a Starlink constellation of 4,408 satellites. Once the low earth orbit satellite is fully deployed, SpaceX’s Starlink project may enable half of the population on earth to be connected, drastically changing the current communication landscape.

SpaceX had been recently granted permission from the Federal Communications Commission for low-level orbit roughly at 540 to 570 km above the earth surface and is said to have deployed 1,320 satellites in orbit prior to launching another 60 on April 7.

Apart from launching numerous spacecraft, low earth orbit constellations will require ground equipment to achieve throughput, including ground stations.

According to an estimation reported by Mckinsey, to achieve the maximum telecommunication capability, the planned 4,400 satellites of Starlink will need 123 ground station locations, many of which in remote areas, and 3,500 gateway antennas. This is where the Taiwanese satellite-component suppliers’ portfolios come into play.

Taiwanese suppliers to Starlink

Currently, behind Starlink’s operation stands a long line of Taiwanese suppliers. The printed circuit board is a key component to Starlink’s equipment, Taiwanese suppliers include Huatong Computer Co., Elite Material Co., Parpro Taiwan. Ground station providers, including Universal Microwave Technology, Inc., and MTI Technology Co.

In the future, Starlink will need a number of telecom equipment, servers, and medium to large antennas, where Pyras Technology Inc., Tron Future Tech Inc., and Universal Microwave Technology, Inc. are some of the providers.

The electronic communication components will also see growth in the low earth orbit segment with suppliers including, Tong Hsing Electronic Industries, CviLux Corp., and Well Shin Technology Co.

As Elon Musk has announced to make Starlink internet service fully mobile, small cell providers such as MediaTek Inc., Win Semiconductors Corp., Quanta Computer Inc., Advantech Co., and Sercomm Corp. are likely to benefit from the trend.

While the industry has a bright future outlook, the scale of the satellite industry is still relatively small, contributing to a very limited portion of the revenue of the current low earth orbit satellite component suppliers. 

Foxconn showed interest

According to Wealth Magazine, Foxconn also showed high interest in the low earth orbit market during SpaceX’s visit to Taiwan, showing interest in supplier integration following the integration of electric vehicles. 

It said, “for Foxconn, an integrated supply chain raises the gross margin profit, but among the Tesla’s suppliers, many of which are already partners of SpaceX – from electric vehicles to low earth orbit satellites and ground equipment, an integrated business is highly beneficial.”

Meanwhile, major changes to enabling a widespread network will depend on the coverage based on the number of satellites launched, which may take roughly three to five years before the low earth orbit satellites become sizable and ultimately, a part of our daily lives.

Suppliers are beginning to enter the race and will go into full bloom most likely from 2022 to 2025.

 

Source: WealthMoneyDJudnTechNews