Recently, I noticed that the space industry has really heated up, especially the concept stocks related to low Earth orbit satellites, and this wave of rally has been quite fierce.

In fact, low Earth orbit satellites have been discussed since last year, but this year they have truly entered the commercial stage. According to Goldman Sachs data, the satellite industry size will grow from the current $15 billion to $108 billion by 2035, an increase of over 7 times, and the potential for growth is quite substantial. Coupled with new concepts like direct-to-phone satellite connections, space AI data centers, and the rising demand for national defense, the market size is indeed expanding rapidly.

Taiwan has actually gained quite a bit of advantage in this race. The local supply chain has long been deeply integrated into the supply systems of major international companies like Starlink, OneWeb, and Kuiper. Companies like Sunway, Kinsus, and MegaHertz have seen their stock prices rise, driving the overall enthusiasm for low Earth orbit satellite concept stocks to continue heating up.

Simply put, low Earth orbit satellites are satellites operating at altitudes of 160 to 2,000 kilometers from the Earth's surface. Their biggest advantage is ultra-low latency and high-speed transmission, with delays of only 20-50 milliseconds, approaching the experience of ground-based 5G. This is also why they have transformed from sci-fi concepts into practical applications.

The supply chain can be divided into upstream, midstream, and downstream. Upstream involves satellite manufacturing and launching; Taiwanese companies like Tongxin Electric provide RF modules, Sunway makes filters, and Wusung is a PCB leader—these are core component suppliers. Midstream includes ground equipment and data processing; companies like Qiyang with transceivers, Qiqi with antennas, and MegaHertz with receivers are involved here. Downstream covers applications and services, such as Chunghwa Telecom acting as an agent for OneWeb's satellite broadband.

If you want to focus on key low Earth orbit satellite concept stocks, I think you can watch these:

EchoStar is a major global satellite communications player. Its Hughes Network provides broadband services and is now integrating LEO satellites with hybrid architectures. Last year, they reached an agreement with SpaceX to sell spectrum licenses in exchange for cash and stock, improving their financial health.

Qiyang Technology is an established RF communication equipment manufacturer with a strong position in ground terminals. They are adopting a two-phase strategy: the first phase focuses on Ku and L-band modules, which have already entered mass production; the second phase is developing complete user terminal devices. Growth is expected to accelerate from the second half of 2026 as user terminal products ramp up.

Tongxin Electronics has stood out by entering the Starlink supply chain, providing RF modules for Starlink satellites since 2019. Although initial contributions were modest, as SpaceX accelerates launches, order volumes are expected to increase year by year. Their ceramic packaging technology features high-frequency characteristics and excellent heat dissipation, making it well-suited for the demanding requirements of satellites.

Overall, the investment logic for low Earth orbit satellite concept stocks is quite clear: focus on targets with high technical barriers and visible order visibility. Taiwanese companies in the upstream and midstream segments have many opportunities. This wave of space business opportunities, extending from satellites to ground applications, is indeed worth continuous attention.