Recently, I've been paying attention to the low Earth orbit satellite sector, and it's really heating up. From technological breakthroughs to commercial deployment, the entire industry is experiencing rapid expansion, especially around the critical year 2026, when the market shifts from deployment to large-scale commercial use. What does this mean? It means that the upstream and downstream of the supply chain will all benefit from the red-hot growth.

Let me start with some data—Goldman Sachs predicts that the overall satellite industry will grow from the current $15 billion to $108 billion by 2035, a growth of over 7 times. This isn't just modest growth; it's a true explosive expansion. And you know what? Taiwan is actually at the forefront of this space race. The local supply chain has already deeply embedded itself into the supply chains of international giants like Starlink, OneWeb, and Kuiper. That’s a real advantage.

So, what exactly are low Earth orbit satellites? Simply put, they are satellites operating within a height range of 160 to 2,000 kilometers from Earth. Their biggest advantage is ultra-low latency and high-speed transmission. In the past, high Earth orbit satellites had latency as high as 500-700 milliseconds, making them practically unusable; low Earth orbit satellites have reduced latency to 20-50 milliseconds, approaching ground-based 5G experience. That’s why they’ve become so popular recently.

Now, let’s focus on the key point—who are the leading concept stocks in low Earth orbit satellites? I’ll divide the supply chain into three segments.

The upstream mainly involves satellite manufacturing and launch services. Taiwanese companies don’t produce rockets, but they hold core positions in precise components and structural parts inside satellites. Shengda Tech (3491) supplies filters and duplexers for satellites, which are critical for signal transmission and reception; Simx Inc. (6271) provides high-frequency wireless communication modules and testing, and has already entered SpaceX’s Starlink supply chain; Wistron NeWeb (2313) is a global leader in low Earth orbit satellite PCBs and is a core supplier for SpaceX satellites. There’s also Taiwan Optical (2383), which supplies high-grade copper-clad substrates; Lianjun (3450) handles optoelectronic packaging; and Huaxing Optoelectronics (4979) provides optical transceiver modules—all positions with high technical barriers.

The midstream involves ground equipment and data services, where Taiwanese companies are also very strong. Qisda (6285) is a major supplier of ground station antennas and plays an important role in the Starlink supply chain; ChaoHek (2485) supplies low Earth orbit satellite receivers and microwave components, which have recently gained market attention; Taliang (2314) is an established satellite communication company that has already entered Telesat’s Lightspeed constellation system, with ground station shipments expected to ramp up in the second half of 2026; Kanso (6282) has entered the high-spec power supply segment for satellites and ground stations.

The downstream involves applications and services, where U.S. stocks dominate. EchoStar (SATS) recently reached an agreement with SpaceX to sell spectrum licenses for $17 billion, significantly strengthening its financial position; AST SpaceMobile (ASTS) has achieved direct satellite-to-cellphone broadband services; Chunghwa Telecom (2412), through its partnership with OneWeb, is integrating satellite and 5G networks.

If I had to pick three stocks to watch closely, they would be these. First is EchoStar, which integrates Hughes resources and offers hybrid connectivity solutions via multi-orbit satellites and ground networks. Its latest spectrum transactions have notably strengthened its financials. Second is Taliang Technology, which holds a pivotal position in ground terminal markets and has obtained certification as the second low Earth orbit satellite operator; the volume of user terminal products in 2026 will be a key factor. Third is Simx Inc., as a supplier of RF modules for SpaceX’s Starlink, with increasing launch frequency, its order scale is expected to grow year by year.

Honestly, each of these leading low Earth orbit satellite concept stocks has its own expertise, but the core logic of stock selection is whether the technological barriers are high and whether order visibility is clear enough. As the entire industry moves from experimental to real commercial phase, Taiwan’s supply chain, with its strong manufacturing and R&D capabilities, has already secured a key position among international giants. This wave of investment extending from space business opportunities to ground applications is likely to continue for some time.