Recently, I noticed that low Earth orbit satellite concept stocks have sparked a wave of rally in the market. To be honest, the explosive growth potential of this industry indeed exceeded expectations. I looked at market data, and Goldman Sachs predicts that the satellite industry will grow from its current $15 billion to $108 billion by 2035, an increase of over 7 times, which is quite a significant growth space.

Why are low Earth orbit satellite stocks so hot right now? Basically, it’s because the technology has matured and commercialization has caught up. Low Earth orbit (LEO) satellites operate at altitudes of 160 to 2,000 kilometers from the surface. Compared to traditional high-altitude satellites with latency of 500-700 milliseconds, LEO satellites reduce latency to 20-50 milliseconds, almost as fast as ground-based 5G. International giants like Starlink, OneWeb, and Kuiper are accelerating their constellation deployments, and Taiwan’s supply chain has already been integrated into this.

I am particularly focused on Taiwan companies’ positions within this industry chain. Upstream key components: Sunlord Tech mainly supplies filters and duplexers, which are core for satellite signal transmission and reception; Tongxin Electric provides high-frequency transceiver modules for Starlink, with each satellite carrying their technology. Wusung is a global leader in PCB for low Earth orbit satellites; SpaceX’s satellite bodies and high-end circuit boards for ground terminals are supplied by them. These are among the companies with the highest technical barriers in low Earth orbit satellite stocks.

Midstream ground equipment is also crucial. Taya Technologies specializes in high-frequency transceivers and has successfully entered Telesat’s Lightspeed constellation system in Canada. Starting from 2026, they will launch complete user terminal equipment, including satellite antennas and auto-tracking systems. Qiji is a major supplier of ground station antennas and indoor routers. Zhaohé supplies low Earth orbit satellite receivers and microwave components, which have recently been very hot in the market. Kanso provides high-spec power supplies for satellite and ground systems, making them noteworthy targets among low Earth orbit satellite stocks.

On the downstream application side, EchoStar integrates Hughes resources to offer hybrid connectivity solutions via multi-orbit satellites and ground 5G networks. Last year, they also reached a $17 billion spectrum deal with SpaceX, significantly strengthening their financial position. Chunghwa Telecom, as Taiwan’s telecom leader, has signed an agency agreement with OneWeb, integrating satellite and 5G networks to provide value-added services to enterprises.

Honestly, if I had to pick key stocks within low Earth orbit satellite stocks, I would focus on three: First, Taya Technologies, with solid RF design capabilities and a complete VSAT product line. As a supplier for Starlink Taiwan, their ground station shipments are expected to increase significantly in the second half of 2026. Second, Tongxin Electric, with leading ceramic packaging technology, already supplies SpaceX directly, and as satellite deployments accelerate, their order volume is expected to grow year by year. Third, EchoStar, a global satellite communications leader with solid financial fundamentals, benefiting from the proliferation of hybrid satellite architectures and enterprise cloud application demands.

Looking ahead to the second half of this year, as low Earth orbit satellite commercial applications enter a new phase, direct satellite-to-phone services are being commercially launched in multiple countries, the concept of space AI data centers is emerging, and defense needs are surging. All these factors will continue to boost investment enthusiasm for low Earth orbit satellite stocks. Taiwanese manufacturers, with their strong manufacturing and R&D capabilities, have already secured a core position in global competition. Stocks with high technical barriers and clear order visibility are the truly long-term targets worth paying attention to.