How Concept Stocks in Satellite Communications Can Capitalize on the Golden Opportunity in the Low Earth Orbit Satellite Market

Satellite communication concept stocks are approaching a critical turning point. The current global low Earth orbit (LEO) satellite market has officially shifted from deployment to large-scale commercial application, bringing unprecedented growth opportunities to related companies across the industry chain. According to Goldman Sachs forecasts, the overall size of the satellite industry will grow significantly from about $15 billion today to $108 billion by 2035, an increase of over 7 times.

In addition to explosive market growth, the driving forces behind this expansion are quite clear: direct-to-phone satellite services are already commercialized in multiple countries, space AI data centers are being implemented, and there is urgent demand for satellite communications in the defense sector. These factors combined have transformed satellite communication from a sci-fi concept into everyday reality. Taiwanese supply chain companies are deeply embedded in the ecosystems of giants like Starlink, OneWeb, and Kuiper, positioning themselves at the core of this global space race.

LEO Satellites: From Sci-Fi to Practical Technology Breakthroughs

To understand the investment logic behind satellite communication concept stocks, it’s essential to recognize the revolutionary significance of LEO satellites.

LEO satellites operate at altitudes between 160 and 2,000 kilometers above Earth. They are the closest artificial satellites to Earth and have become one of the most prominent recent advancements in space communication technology. SpaceX’s Starlink project is a prime example.

Compared to traditional high Earth orbit (HEO) satellites, LEO satellites offer extremely low latency. Past HEO satellite communications had delays of 500–700 milliseconds, unsuitable for real-time applications; LEO satellites reduce latency to 20–50 milliseconds, approaching 5G ground network levels. This technological breakthrough instantly expands the application scope of satellite communications—from remote healthcare, online gaming, video conferencing, to financial trading, enabling all kinds of real-time applications.

Another key factor driving the explosion of LEO satellites is the fundamental reduction in costs. SpaceX’s reusability of rockets and the Starship heavy-lift vehicle have lowered launch costs per kilogram from $10,000 to below $2,000, directly changing satellite manufacturing logic—from small-batch customization to mass production. This shift requires the entire supply chain to undergo profound adaptation and upgrading.

Global Supply Chain Restructuring: Taiwan’s Core Role

This wave of commercialized LEO satellites is accompanied by a global supply chain reorganization. Taiwan, leveraging its manufacturing and R&D strengths, has become a critical part of this restructuring.

The LEO satellite supply chain can be divided into three segments: upstream manufacturing and launch, midstream operation and data processing, downstream applications and services. Taiwanese companies’ core competitiveness mainly lies in upstream precision components and midstream ground equipment.

In upstream, satellite payloads (communication payloads) are crucial for performance. High-frequency microwave components, RF modules, phased array antennas—these seemingly complex terms all relate to how to achieve stable, efficient signal transmission in the harsh space environment. LEO satellites need to withstand radiation, be lightweight, and have efficient heat dissipation—Taiwan’s precision manufacturing industry excels at solving these challenges.

In midstream, ground receiving stations and user terminals are experiencing rapid growth. As satellite constellations move from deployment to commercialization, thousands of users will need ground equipment, opening a large market for ground device manufacturers.

Complete Ecosystem of the Satellite Communication Industry Chain

To better understand investment opportunities, it’s important to explore each segment of the industry chain and the related concept stocks.

Upstream: Satellite Manufacturing and Launch

Leading aerospace and defense companies dominate satellite manufacturing. Lockheed Martin is a global leader in aerospace and defense, managing numerous military and commercial LEO satellite projects; Northrop Grumman specializes in space systems and satellite manufacturing, being a core contractor for U.S. defense satellites; Rocket Lab offers small to medium launch vehicles, challenging traditional launch market players.

In Taiwan’s stock market, although no companies directly manufacture rockets, local firms have become key players in satellite internal components:

Simax (6271) has been supplying high-frequency transceivers (RF modules) for SpaceX’s Starlink since around 2019. Each Starlink satellite carries Simax’s modules for RF signal transmission between satellites, ground stations, and user terminals. As SpaceX accelerates launches aiming to deploy over 12,000 satellites by 2027, Simax’s orders are increasing annually.

Shengda Technologies (3491) is the most specialized Taiwanese company in LEO satellite components, supplying filters and duplexers critical for satellite communication signals. Its gross margin and revenue share from upstream components are expected to remain leading through 2026.

Wah Tong (2313) is a global leader in low Earth orbit satellite PCBs, providing high-end HDI circuit boards for SpaceX satellites and ground terminals, with a high market share.

TaiGuang Electronics (2383) is a major manufacturer of copper-clad laminates (CCL), providing high-frequency, low-loss materials for satellite communication boards, ensuring stable operation.

Laird Optoelectronics-KY (7717) focuses on passive components for satellite laser communication, entering the inter-satellite link (ISL) field with leading technology.

Lianjun (3450) and Huaxing Optoelectronics (4979) excel in optoelectronic packaging and fiber-optic communication components, benefiting from the trend toward silicon photonics and integrated optoelectronics in satellites.

Midstream: Ground Equipment and Constellation Operations

After satellites are launched into orbit, extensive ground infrastructure is needed to support operations. This involves constellation deployment, ground station construction, and data processing.

Amazon’s Kuiper project is expected to go live in early 2026 in the US, UK, France, Germany, and Canada, directly challenging Starlink’s market dominance. Telesat is building its Lightspeed LEO constellation, focusing on enterprise and government-level high-speed, low-latency data transmission.

In ground equipment, Taiwanese companies also perform strongly:

Tai-Yang Technologies (2314) is a veteran RF communication equipment manufacturer in Taiwan, with deep experience in satellite communication ground terminals. Its strategy involves two phases: first focusing on Ku- and L-band transceivers, starting small in 2020, reaching mass production by 2023. By 2024, Tai-Yang has obtained certification from a second low Earth orbit satellite operator and integrated into Telesat’s Lightspeed system. The second phase involves developing complete user terminal solutions, combining RF, microwave, and auto-tracking technologies, enabling easy installation and reducing costs. From late 2026, as low Earth orbit user terminals ramp up, Tai-Yang is expected to see significant revenue growth.

Zhaohé (2485) supplies low Earth orbit satellite receivers and microwave components, with increasing market attention.

Qiji (6285) is a major supplier of ground station antennas and indoor routers, playing an important role in the Starlink supply chain.

Yao Deng (3138) leads in phased array antenna technology, with flat-panel antennas successfully integrated into ground receivers for LEO satellites.

MediaTek (2454) develops satellite communication chips supporting 5G-NTN standards, key for satellite-connected terminals.

Kangshu (6282) supplies high-end power supplies for satellite and ground systems, extending to 800V high-voltage DC architectures and data center power applications.

Downstream: Applications, Services, and Commercialization

The ultimate value of LEO satellites lies in downstream applications. The most direct use is providing broadband internet in remote areas, at sea, or on aircraft, but applications are expanding into defense, cargo tracking, Earth observation, and IoT.

AST SpaceMobile (ASTS) is the world’s first operator to offer direct mobile phone satellite broadband services, partnering with major telecom operators to provide 5G satellite connectivity. EchoStar (SATS) integrates Hughes and DISH resources, offering hybrid connectivity via multi-orbit satellites and ground 5G networks.

In Taiwan, Chunghwa Telecom (2412) has signed agency agreements with international giants like OneWeb, integrating satellite and 5G networks to provide value-added connectivity services for government and enterprise clients. Zhongqi (2419) supplies satellite data modems and home Wi-Fi solutions for downstream users.

Investment Focus List for Satellite Communication Stocks in 2026

Based on the above industry analysis, the following three companies are worth close attention:

1. EchoStar (SATS) — Integrated Broadband Service Platform

EchoStar Corporation, through its Hughes Network Systems, provides satellite broadband access worldwide. It owns a fleet of geostationary satellites and extensive ground networks, serving rural broadband, community Wi-Fi, aviation, maritime, and enterprise markets.

As low Earth orbit and hybrid satellite architectures become more prevalent, demand for reliable networks increases. Rural broadband, government initiatives to reduce digital divides, and expanding mobile applications all boost EchoStar’s Hughes business.

In September 2025, EchoStar announced a major deal to sell its AWS-4 and H-band spectrum licenses to SpaceX for about $17 billion. The transaction includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, with SpaceX also agreeing to pay about $2 billion in debt interest until November 2027. This significantly strengthens EchoStar’s financial position and lays a solid foundation for future growth.

2. Tai-Yang Technologies (2314) — Leader in Ground Terminals

Tai-Yang is a veteran Taiwanese RF communication equipment manufacturer, with a strong position in satellite ground terminals. Its expertise lies in high-frequency transceivers.

Tai-Yang’s strategy involves two phases: initially focusing on Ku- and L-band transceivers, starting small in 2020, reaching mass production by 2023. By 2024, it obtained certification from a second low Earth orbit satellite operator and integrated into Telesat’s Lightspeed system and other international projects.

The second phase involves developing complete user terminal solutions, integrating RF, microwave, and auto-tracking technologies. These flat-panel antennas can be installed on rooftops or vehicles, with automatic satellite tracking, reducing costs and complexity. From late 2026, as low Earth orbit user terminals scale up, Tai-Yang is expected to see significant revenue growth.

3. Simax (6271) — Satellite High-Frequency Module Supplier

Simax, part of the Pan-Guo Group, is a leading high-frequency wireless module packaging and testing company, with capabilities spanning ceramic substrates and mixed IC modules. Its notable achievement is entering SpaceX’s Starlink supply chain.

Since around 2019, Simax has supplied RF modules for Starlink satellites, responsible for RF signal transmission between satellites, ground stations, and user terminals. Although initial contributions were modest, the rapid deployment of over 12,000 satellites by 2027 will steadily increase orders.

Simax’s RF modules use proprietary ceramic packaging technology, offering excellent high-frequency performance and heat dissipation, meeting the strict weight and performance requirements of satellites. This collaboration demonstrates Taiwan’s ability to supply cutting-edge aerospace components.

Looking ahead, if Starlink upgrades or other satellite constellations order modules, Simax will have a strong competitive edge. Investors should monitor its R&D and capacity expansion in high-frequency components.

Summary: From Space to Ground, Major Investment Opportunities

LEO satellites have moved from experimental to commercial stages. Maturation of technology, falling costs, and diversified applications are driving the satellite industry into exponential growth.

Taiwan’s supply chain, with its strong manufacturing and R&D capabilities, has secured a key position globally. Upstream RF modules from Simax, filters from Shengda, PCBs from Wah Tong; midstream transceivers from Tai-Yang, power supplies from Kangshu, chips from MediaTek—Taiwanese firms are deeply involved in every segment of the global LEO satellite industry.

For investors, the core logic of satellite communication concept stocks hinges on the long-term trends of “space infrastructure” and “communication ubiquity.” Focus should be on high-technical-threshold companies with clear order visibility and international competitiveness to truly capitalize on this wave of space-to-ground business opportunities.