Recently, I noticed a quite interesting market phenomenon: the concept stocks of low Earth orbit satellites have really gained popularity in this wave of market activity. Companies like Shengda Technology, Kanso, and Zhaoheng have seen significant stock price increases, which actually reflect that the entire space industry is entering a critical explosion period.

Speaking of low Earth orbit satellites, they are essentially satellites operating at altitudes of 160 to 2,000 kilometers from Earth. Their biggest advantages are ultra-low latency and high-speed transmission, with delays only around 20 to 50 milliseconds, close to ground-based 5G experience. This technology was previously considered a science fiction concept, but in the past one or two years, due to breakthroughs in both technology and commercial applications, it has truly become a practical reality.

Goldman Sachs predicts that the entire satellite industry will grow from the current $15 billion to $108 billion by 2035, a growth of over 7 times. Taiwan actually holds a good position in this space race; the local supply chain has already been deeply embedded in the supply chains of major international companies like Starlink, OneWeb, and Kuiper.

From the industry chain perspective, upstream mainly involves satellite manufacturing and launch services. Taiwanese companies perform well in this area. For example, Shengda Technology supplies satellite filters and duplexers; Wusung is a leading PCB supplier for SpaceX satellites; Hecon provides high-frequency wireless modules. These are key players among low Earth orbit satellite concept stocks.

The midstream ground systems and data processing are also very important. Taiwanese companies like Qihui, Zhaoheng, and Taiyang are active here. Taiyang is especially worth noting; they have been deeply involved in satellite communications for a long time, starting small shipments in 2020, reaching mass production by 2023, and have now successfully obtained certification from a second low Earth orbit satellite operator. It is expected that from this year, as low Earth orbit user terminal products begin to scale up, they will become a key driver of revenue growth.

Downstream applications include communication broadband services, Earth observation, and defense applications. EchoStar recently reached an agreement with SpaceX to sell spectrum licenses for $17 billion, reflecting how hot the satellite communication market is.

If I had to pick the key stocks among the leading low Earth orbit satellite concept stocks, I would focus on these three: First, EchoStar, as a global leading satellite communication provider; Hughes Network Systems provides broadband services to remote areas worldwide and is benefiting from the popularity of low Earth orbit satellites and hybrid satellite architectures. Second, Taiyang Technology, which has entered mass production of Ku-band and L-band transceiver modules and has successfully penetrated Telesat’s Lightspeed constellation system. Third, Hecon, which started providing high-frequency transceiver modules for Starlink as early as 2019; with SpaceX accelerating launches, their order scale is expected to increase year by year.

Overall, as the technology matures, low Earth orbit satellites have moved from the experimental stage into actual commercial use. Taiwan’s supply chain, with its strong manufacturing and R&D capabilities, has already secured a key position with major international players. If you want to grasp investment opportunities extending from space business to ground applications, it’s wiser to prioritize indicator stocks with high technological barriers and clear order visibility.