SpaceX IPO sparks debate; Taiwanese manufacturers must grasp satellite operators' strategies to enter supply chain

Central News Agency, Taipei, May 23. The upcoming IPO of aerospace and low-orbit satellite giant SpaceX, coupled with the accelerated satellite launches by Amazon's low-orbit satellite company Amazon Leo, has led the market to be optimistic about the industry's development. Analysts point out that due to the strategic adjustments of these two satellite operators, they are not growing alongside a small number of existing supply chains like before. Instead, they possess key technologies, and after delivery, they accumulate space flight heritage as customers use them. For new manufacturers to enter the supply chains of these two satellite operators, they must meet long-term space verification requirements in advance or cooperate with government-related units to complete projects with the satellite operators, thereby gaining the opportunity to get their components into the supply chain list. In addition, Amazon Leo has changed its strategy, adopting the same approach as SpaceX, keeping the front-end important components and back-end satellite assembly business in its own factories, making it increasingly difficult for new manufacturers to enter the supply chain. SpaceX, the aerospace and artificial satellite giant under the world's richest man Elon Musk, will conduct its initial public offering (IPO), expected to be listed on the Nasdaq exchange in the US as early as June 12. SpaceX's IPO valuation target is expected to reach 1.75 to 2 trillion USD, potentially setting a new record. TrendForce analyst Wang Wei-ru stated that Amazon Leo has adopted the same approach as SpaceX, keeping the front-end satellite chip development and back-end satellite body assembly business in its own factories, and handing over key components such as RF (radio frequency) components to a few Taiwanese manufacturers for production. Taiwanese manufacturers that want to enter the supply chains of the two companies in the future need to cooperate with long-term space verification and other methods to enter the supply chain. Wang pointed out that SpaceX's Starlink has so far kept the back-end satellite assembly and verification, as well as the front-end satellite body chips, in its own factories in the US for development and production. It only hands over some key RF components, such as RF component integration, HDI (High-Density Interconnect) PCBs, microwave components, and low-noise amplifiers, to Taiwanese manufacturers that have cooperated for a long time. Coupled with Starlink's non-red supply chain policy, Taiwanese manufacturers supplying components can more stably receive fixed orders from Starlink. At the current stage, only a few Taiwanese manufacturers that have cooperated for a long time can continue to stand firm in the Starlink supply chain. Observing the impact of Starlink and Amazon Leo on the global satellite industry, Wang analyzed that Starlink is currently mainly adopting a strategy of acquiring a large amount of spectrum to provide users with better communication quality for satellite broadband and direct-to-cell satellite services. In addition, the spectrum acquisition strategy means that Starlink is building its own ecosystem. From user terminal equipment to mobile phone user equipment, everything is in Starlink's hands. Under the condition that Starlink controls the right to set specifications, end users and suppliers will follow Starlink's ecosystem. As for Amazon Leo, it is required by the US FCC to complete the launch of more than 1,600 satellites by July 2026, but only more than 300 satellites were completed by May 2026. At this stage, Amazon Leo is focusing on launching a large number of satellites. In addition to large-scale deployment of its own satellite constellation, Amazon Leo has also launched user terminal products focusing on enterprise users. Compared with Starlink's focus on general users, Amazon Leo targets enterprise users and provides integrated satellite networking services for enterprises, avoiding price competition with Starlink by expanding different user groups.