Low Earth Orbit satellite concept stocks usher in commercial explosion, with investment opportunities across three levels of the supply chain fully opening up

The global space communications industry is entering a turning point. Goldman Sachs predicts that the overall satellite industry will grow from approximately $15 billion today to $108 billion by 2035, a more than sevenfold increase. The core driver of this transformation is not just technological breakthroughs, but the fact that low Earth orbit (LEO) satellites are officially entering large-scale commercial deployment—smartphone direct-to-satellite connectivity is about to become widespread, space AI data centers are emerging, and defense demands are significantly increasing. Multiple factors are stacking up to boost market demand. As Starlink constellation deployment approaches completion, Amazon’s Kuiper is set to officially commercialize in the US, UK, France, and Germany in early 2026, and OneWeb and Telesat are accelerating their satellite constellations, low Earth orbit satellites have shifted from future vision to current reality.

Taiwanese companies are positioned at a critical point in this global space race. The local supply chain has deeply embedded itself into the ecosystems of international giants like Starlink, OneWeb, and Kuiper, covering everything from upstream filters, RF modules, and PCB materials, to midstream ground receivers, antennas, and chips, and down to downstream communication services and integration platforms. Taiwanese firms hold core competitive advantages at every stage.

The Commercial Era Begins: Explosive Growth in the Global Satellite Communications Industry

LEO satellites, or “Low Earth Orbit satellites,” operate at altitudes of 160–2,000 kilometers above the Earth’s surface. Compared to traditional high-orbit satellites with 500–700 milliseconds latency, LEO satellites reduce delay to 20–50 milliseconds—approaching 5G ground-level standards. This dramatic improvement makes them suitable for real-time applications such as gaming, video streaming, telemedicine, and online trading.

Beyond technological advantages, cost innovation is a key trigger for the explosion of LEO satellites. SpaceX has reduced launch costs from $10,000 per kilogram to below $2,000 through rocket recovery and heavy-lift Starship technology, directly catalyzing the shift from customized to mass-produced satellites. As deployment scales up, satellite manufacturers and suppliers are forced to upgrade to modular designs and large-scale manufacturing capabilities, further driving the growth of the entire industry chain.

The Entire Supply Chain Benefits, Taiwanese Companies Position for Global Competition

The LEO satellite industry chain can be divided into three tiers:

Upstream manufacturing and launch services include satellite body production, launch services, and key component supply. Satellite payloads rely on high-frequency microwave components, RF modules, and phased array antennas, which directly determine communication quality. Due to the harsh environment of space, precision metal parts, high-end HDI circuit boards, and compound semiconductor packaging are critical technologies. International players like Lockheed Martin and Northrop Grumman lead in satellite manufacturing and military applications, Rocket Lab specializes in small to medium launch vehicles, while Taiwanese companies excel in precision components and materials.

Midstream operation and data processing focus on ground infrastructure. Precise deployment of satellite constellations, orbit management, laser inter-satellite links, and resource allocation are fundamental to system operation. Data transmission and processing drive the development of edge computing, network virtualization, and cloud platforms. Amazon’s Kuiper and Telesat’s Lightspeed are rapidly advancing, while ground stations, data modems, and phased array antennas are critical bottlenecks. Taiwanese firms lead in ground equipment manufacturing and design.

Downstream applications and services include satellite broadband, direct-to-cell phone connectivity, Earth observation, precise positioning, and defense applications. Growing demand for remote and maritime communications, enterprise cloud adoption, digital transformation, and government security needs are extending satellite services from basic connectivity to integrated one-stop solutions.

Key Investment Logic: Who Holds the Core Power in Low Earth Orbit Satellite Concept Stocks?

Investors should focus on companies with “high technological barriers, clear order visibility, and definite growth timelines” in the low Earth orbit satellite sector. Currently, market attention centers on three areas:

First, RF and microwave components. The quality of satellite transceivers directly impacts system performance. Wistron NeWeb (WIN) began supplying high-frequency RF modules for Starlink as early as 2019. As SpaceX accelerates launches (aiming to deploy over 12,000 satellites by 2027), related orders are increasing annually. Sunway Communication’s filters and duplexers lead in profit margins and revenue share in satellite applications.

Second, ground terminal equipment. The cost and ease of use of phased array antennas determine downstream adoption. Taiwan’s Yageo adopts a “two-phase” strategy—initially focusing on mass production of Ku- and L-band transceivers (certified by a second low Earth orbit operator in 2024), then developing complete user terminal devices like flat-panel antennas with automatic tracking. Yodden leads in planar antenna technology, while Kinsus deepens its layout in high-spec power supplies.

Third, foundational materials and substrates. Wuson is a leading PCB supplier for low Earth orbit satellites, providing high-end HDI circuit boards for SpaceX’s satellites and ground terminals. Taiwan’s Kinsus supplies high-frequency, low-loss copper-clad substrates, essential for stable satellite communication operation.

From Technological Breakthroughs to Commercial Deployment: The Top 3 Low Earth Orbit Satellite Stocks to Watch

1. EchoStar (SATS): The Satellite Broadband Service Integrator

EchoStar’s Hughes Network Systems is a leading global satellite broadband provider, serving remote and poorly connected areas for consumers, enterprises, and governments. As low Earth orbit and hybrid satellite architectures become mainstream, and enterprise demand for reliable networks grows, EchoStar benefits from sustained satellite communication growth. Rising rural broadband needs, government initiatives to reduce digital divides, and expansion of mobile applications provide strong momentum.

Recently, EchoStar reached a major agreement with SpaceX to sell spectrum licenses for AWS-4 and high-frequency bands, valued at about $17 billion, including up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, with SpaceX also committing to pay debt interest until November 2027. This significantly strengthens its financial position.

2. Yageo (2314): Pioneer in Ground Terminals for Low Earth Orbit Satellites

Yageo has long been active in satellite communications, especially in high-frequency transceivers for low Earth orbit satellites. The company’s “two-phase” strategy involves:

• Phase one: Achieving mass production of Ku- and L-band transceivers, which started small in 2020, with improvements over the years, reaching scale in 2023. By 2024, Yageo has obtained certification from a second low Earth orbit operator and supplied transceivers for Telesat’s Lightspeed constellation in Canada.

• Phase two: Developing complete user terminal devices, integrating RF, microwave, and auto-tracking technologies. These flat-panel antennas can be installed on rooftops or vehicles, with automatic tracking to reduce costs and installation barriers. From late 2026, as low Earth orbit user terminals ramp up, this will become a major revenue driver. Yageo’s solid RF circuit design and hardware manufacturing, along with its VSAT product line, position it as a key ground equipment supplier for Starlink in Taiwan, with promising growth prospects.

3. Tongxin Electronics (6271): Direct Supplier of Satellite RF Modules

Tongxin Electronics, part of the Pan-Guo Group, is a major manufacturer of high-frequency wireless modules, specializing in ceramic substrates and hybrid IC modules. The company has successfully entered SpaceX’s Starlink supply chain—beginning around 2019, it supplied high-frequency RF modules for Starlink satellites, handling RF signals between satellites, ground stations, and user terminals.

While initial contributions to revenue were limited, as SpaceX accelerates launches, order volume is expected to grow annually. Tongxin’s RF modules use proprietary ceramic packaging with excellent high-frequency performance and heat dissipation, meeting the strict weight and performance requirements of satellites. Upgrades to Starlink or new satellite constellations will further enhance its competitive edge.

Investment Strategies for Low Earth Orbit Satellite Stocks

LEO satellites have moved from experimental to commercial phases. Taiwanese supply chains, with their strong manufacturing and R&D capabilities, have secured key positions across the industry—upstream in filters, RF modules, and PCB materials; midstream in ground receivers and antennas; downstream in integrated services.

Investors should focus on “space infrastructure” and “communication proliferation” themes, prioritizing stocks with high technological barriers, clear order visibility, and definite growth timelines. Key indicators include the shipment of ground terminals in late 2026, the global rollout of Kuiper, and order confirmations for Taiwanese companies in international constellations. These will determine the medium-term investment value of low Earth orbit satellite stocks. In the short term, the market’s enthusiasm for satellite communications will remain high, but real profit opportunities lie in companies with proven technology, replicable business models, and scalable growth potential.