The SpaceX Starship rocket exploded in the air shortly after the test flight launch, which was a setback for the low Earth orbit (LEO) satellite market, although it remains optimistic in the long run.
Industry sources say the LEO satellite supply chain needs enough rockets to keep its momentum going.
Taiwanese companies in SpaceX's supply chain include: network component and module manufacturers Wistron NeWeb and Universal Microwave Technology (UMT); GaAs Fab Win Semiconductors; Sources, as well as RF module supplier Dongxing Electronics.
Sources familiar with the semiconductor packaging and testing industry said there were some delays in rocket development at a US customer. For their suppliers, their product development has also been delayed, the source added.
UMT is a supplier to many major LEO satellite companies, including SpaceX, and it has a good chance of seeing a 23-25% increase in its LEO-related product segment, the sources said. But there are also some concerns. In 2022, SpaceX saw delays in the development of many support modules, which prevented UMT from going beyond the product sampling stage, sources said. Although UMT began shipping to SpaceX in March, the Starship launch event means that the explosive growth of the LEO satellite market may not come anytime soon.
Sources noted that Latitude has reportedly entered SpaceX's client equipment (CPE) supply chain.
Win Semi chairman Dennis Chen told DIGITIMES in a recent interview that the Russia-Ukraine war has highlighted the importance of satellite communications. In the upcoming era of the Internet of Everything, compound semiconductors will usher in huge opportunities.
Tongxing, which is known for its back-end services for CMOS sensors for automobiles and mobile phones, has many years of experience in RF module packaging, covering the fields of optical communication and satellite communication.
Aerospace products must undergo rigorous certification procedures. Sources said Tongxing was able to quickly enter the SpaceX supply chain because it has been certified in the field of military products.