The SpaceX Starship rocket exploded in mid-air shortly after the test flight launch, which is 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 it going.
Taiwanese companies in SpaceX's supply chain include: Wistron NeWeb and Universal Microwave Technology (UMT), makers of network components and modules; GaAs fab Win Semiconductors, sources said, and RF module supplier Dongxing Electronics.
Sources familiar with the semiconductor packaging and testing industry said there were some delays in rocket development for a U.S. customer. For their suppliers, their product development has also been delayed, the source added.
UMT, which is a supplier to many major LEO satellite companies, including SpaceX, 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 supporting modules, which prevented UMT from moving beyond the product sampling phase, the 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 be coming anytime soon.
Wistron has reportedly entered SpaceX's customer premises equipment (CPE) supply chain, the sources noted.
Dennis Chen, chairman of Win Semi, 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.
Toncin is known for its CMOS sensor back-end services for automobiles and mobile phones, and has many years of experience in RF module packaging, covering the fields of optical communication and satellite communication.
Aerospace products must go through a rigorous certification process. According to the source, Toncin was able to quickly enter the SpaceX supply chain because it has already been certified in the field of military products.