The Golden Age of Space Begins! Low Earth Orbit Satellite Stocks Explore New Opportunities

Currently, the low Earth orbit (LEO) satellite industry is in its preparatory phase, with 2026 marking a critical milestone in the space race. Driven by multiple catalysts such as satellite communications, direct mobile connections, and space AI data centers, low Earth orbit satellite stocks are attracting increasing investor attention. According to Goldman Sachs, the satellite industry is expected to grow from its current $15 billion to $108 billion by 2035, a more than sevenfold increase—this growth potential is enough to shake up the entire space economy landscape.

Taiwanese manufacturers have already positioned themselves in this wave, from upstream precision components and ground equipment to downstream communication services. Taiwanese companies are deeply embedded in the supply chains of global satellite giants like SpaceX Starlink, Amazon Kuiper, and OneWeb. As the industry moves from testing to commercialization, the investment value of low Earth orbit satellite stocks is gradually becoming evident.

Why Will Low Earth Orbit Satellite Stocks Be the Investment Focus in 2026?

What are Low Earth Orbit (LEO) Satellites? These are satellites operating at altitudes of approximately 160–2000 km above Earth. Compared to high-altitude satellites with 500-700 ms latency, LEO satellites can reduce latency to 20–50 ms, nearly matching ground-based 5G experiences. This technological breakthrough turns satellite communication from a sci-fi concept into a commercial reality.

Investors should pay attention to low Earth orbit satellite stocks now for three reasons:

First, Unprecedented Industry Drivers. Direct-to-phone satellite services are already being commercialized in multiple countries. Collaborations between AST SpaceMobile and major telecom operators expand end-user markets. Meanwhile, demand for satellite data centers and military applications is surging, creating new revenue streams.

Second, Fundamental Cost Structure Changes. SpaceX’s rocket reusability and Starship heavy-lift rockets have drastically reduced satellite launch costs from over $10,000 per kg to below $2,000. This makes large-scale satellite constellations feasible. Cost reductions are directly pushing upstream suppliers from custom manufacturing toward mass production, with order volumes skyrocketing.

Third, Taiwan’s Supply Chain Advantages Are Real. Companies like Shunda (3491) with satellite filters and duplexers, Kinsus (6282) with high-spec power supplies, and MegaHertz (2485) with microwave components have become key suppliers for international giants, with clear order visibility.

Upstream Supply Chain: The Golden Opportunity for Precision Component Manufacturers

The upstream supply chain for low Earth orbit satellites includes satellite manufacturing, critical components, and launch services. Due to the harsh in-orbit environment, all components must meet extremely high standards for reliability and radiation resistance, creating a competitive edge for technically intensive Taiwanese firms.

The core of satellites is the communication payload, composed of high-frequency microwave components, RF modules, and phased array antennas. To achieve mass production, upstream suppliers need modular design and scalable manufacturing capabilities.

Key Taiwanese companies in the upstream low Earth orbit satellite stocks include:

Tongxin Electronics (6271): Started supplying high-frequency transceivers to SpaceX in 2019, with each Starlink satellite equipped with its RF modules. As SpaceX plans to deploy over 12,000 satellites before 2027, Tongxin’s orders are expected to grow annually. The company uses proprietary ceramic packaging technology, offering excellent high-frequency performance and heat dissipation.

Shunda (3491): Supplies filters and duplexers for satellites. Its upstream satellite business began showing leading revenue and gross profit growth in 2026. As the highest-purity Taiwanese low Earth orbit satellite component supplier, it has become a recognized core supplier in the industry.

Huatong (2313): A global leader in low Earth orbit satellite PCBs, supplying high-end HDI circuit boards for SpaceX satellites and ground terminals. As satellite numbers increase, demand for such advanced boards will continue to grow.

Other notable upstream players include Taiguang (2383) with high-grade copper-clad substrates for satellites, LaiDe Optoelectronics-KY (7717) focusing on optical components for inter-satellite links, Lianjun (3450) and Huaxingguang (4979) in optoelectronic packaging and fiber optic modules. These upstream firms share high technical barriers and clear order visibility, making them highly attractive for investment.

Midstream Equipment Providers: The Key Hub for Ground Terminals

The midstream supply chain centers on ground equipment and data services. User terminals, including satellite antennas and modems, are critical, especially phased array antenna technology, which directly impacts cost and adoption. To achieve seamless global communication, operators need to deploy ground stations worldwide and manage the satellite constellation through mission control centers.

Data transmission and processing are the true value drivers of satellite systems. Signals received from satellites must be integrated into global networks and processed in data centers, spurring developments in edge computing and network virtualization.

Taiyang Technology (2314): A representative midstream low Earth orbit satellite stock. This established RF communication equipment manufacturer has long been involved in satellite fields. Its development is in two phases: first, mass production of Ku- and L-band transceivers, achieved in 2023; second, developing complete user terminal devices integrating RF, microwave, and auto-tracking technologies. From 2026 onward, volume shipments of user terminals are expected to become a key growth driver. Taiyang has successfully supplied ground equipment for Telesat’s Lightspeed constellation and entered multiple international satellite projects.

Qiji (6285): Supplies ground receiving station antennas and indoor routers for Starlink, holding a significant market position. MegaHertz (2485): Provides low Earth orbit satellite receivers and microwave components, with recent market enthusiasm. YaoDeng (3138): Leads in phased array antenna technology; its flat-panel antennas have successfully entered the ground receiver supply chain for low Earth orbit satellites. Kangxu (6282): Supplies high-end power supplies for satellite and ground systems, extending to data center applications.

MediaTek (2454): Has a unique strategic position—its satellite communication chips supporting 5G-NTN standards are core technologies for satellite internet-enabled devices. As direct satellite connection functions become widespread in smartphones, demand for MediaTek’s chips will surge.

Downstream Applications: New Growth Drivers for Service Providers

The downstream of low Earth orbit satellites focuses on application and service innovation. The most immediate applications include broadband connectivity for remote areas, maritime, and aviation, but future value extends into defense, cargo tracking, and IoT.

Chunghwa Telecom (2412): Taiwan’s leading telecom operator, partnering with international giants like OneWeb to integrate satellite and 5G networks, providing value-added connectivity services for enterprises and government, benefiting directly from the commercialization wave of low Earth orbit satellites.

Zhongqi (2419): Offers high-speed data modems and home Wi-Fi solutions that integrate satellite signals, benefiting from the proliferation of satellite broadband.

Globally, satellite operators like EchoStar, Iridium Communications, and Globalstar are expanding application scenarios, while Planet Labs and BlackSky leverage high-frequency Earth imaging and real-time geospatial intelligence for agriculture, environmental monitoring, and defense.

In-Depth Analysis of Three Must-Watch Low Earth Orbit Satellite Stocks in 2026

EchoStar (SATS)—Master of Satellite Hybrid Architectures

EchoStar Corporation, through Hughes Network Systems, provides broadband access to consumers, enterprises, and governments worldwide. As low Earth orbit and hybrid satellite architectures become more prevalent, and with increasing demand for reliable networks, EchoStar is positioned for rapid growth.

In September 2025, EchoStar reached a significant agreement with SpaceX to sell AWS-4 and H-band spectrum licenses for about $17 billion. The deal includes up to $8.5 billion in cash and equity in SpaceX, with SpaceX also covering approximately $2 billion in debt interest until 2027, significantly strengthening EchoStar’s financial position. This move marks a new phase of industry consolidation.

Taiyang Technology (2314)—Domestic Leader in Ground Equipment

Taiyang’s core strength lies in solid RF circuit design and hardware manufacturing. Its “two-phase” strategy has shown results:

First phase: Completed mass production of Ku- and L-band transceivers in 2023, with certification from a second low Earth orbit satellite operator. Its products are integrated into Telesat’s Lightspeed constellation, with clear order visibility.

Second phase: Developing complete user terminal devices, including auto-tracking flat-panel antennas that can significantly reduce terminal costs. From late 2026, shipments are expected to surge, becoming a new revenue growth engine.

As a key supplier for SpaceX Starlink ground equipment, Taiyang’s future growth prospects are highly anticipated.

Tongxin Electronics (6271)—Hidden Champion in Satellite Components

Tongxin, part of the Pan-Guoju Group, is a major manufacturer of high-frequency wireless modules. Its notable achievement is successfully entering SpaceX’s Starlink supply chain. Since 2019, Tongxin has supplied high-frequency transceivers for each Starlink satellite, responsible for RF signal transmission between satellites, ground stations, and user terminals.

Although initial contributions to revenue were modest, with SpaceX accelerating launches and planning to deploy over 12,000 satellites by 2027, Tongxin’s orders are expected to grow annually. Its proprietary ceramic packaging technology offers excellent heat dissipation and lightweight features, meeting the demanding requirements of satellites.

If Starlink upgrades or other satellite constellations place new orders, Tongxin’s competitive advantage will be reinforced. Its high-frequency component expertise has gained international recognition.

Investment Strategy for Low Earth Orbit Satellite Stocks: Selection Logic and Risks

How to choose low Earth orbit satellite stocks? Investors should focus on three core aspects:

1. Technological Barriers and Moats: Prioritize companies with proprietary, hard-to-replace technologies. Leaders in RF modules, high-end PCBs, and phased array antennas have long-term competitive advantages.

2. Order Visibility: Select companies with confirmed orders from major international players and transparent cooperation agreements. Examples include Tongxin with Starlink and Taiyang with Telesat, which are based on actual orders rather than speculation.

3. Industry Growth Stage: 2026–2027 is the golden period for large-scale satellite constellation deployment. Companies with the strongest growth momentum during this period will benefit most.

Risks: The satellite industry faces rapid technological iteration, policy risks, and increasing international competition. Diversification, regular review of holdings, and cautious valuation are essential. Stocks with large recent gains should be carefully evaluated; long-term growth opportunities exist, but chasing high prices blindly is risky.

Summary: Investment Opportunities in the Space Era

Low Earth orbit satellite stocks represent not just a short-term trend but a long-term industry revolution. From a $15 billion market today to $108 billion in the future, every segment offers investment opportunities.

Taiwan’s supply chain, with its strong manufacturing and R&D capabilities, has secured a key position globally. Upstream precision components, midstream ground equipment, and downstream communication services all feature leading companies deeply involved in international competition.

For investors, the appeal of low Earth orbit satellite stocks lies in: clear industry drivers, verifiable order growth, unique technological moats, and long-term market expansion potential. Seizing this wave of space-to-ground application investments is essential to truly capture the wealth opportunities beyond 2026 and beyond.