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Increased demand for low-orbit satellites drives PCB suppliers


What is low-orbit satellite

The biggest difference between low-orbit communication satellites and traditional communication satellites is the height above the ground. Satellite communications for television, telephone, radio, Internet and military fields have actually been in operation for many years, the principle is very simple: communication satellite as a ground transmitting station and receiving station signal relay point, first, up-link signal receiver to receive the data from a station on the ground, the signal will be amplified and frequency shifted and then down-link transmitter back to the ground another station, to achieve long-range communications. These satellites are usually located in geosynchronous orbit (GSO) at 35,786 km above the earth, and because the orbiting period is the same as the earth’s rotation, they pass over the same place at the same time every day, and because the altitude is enough, the radio wave point (ground) to point (air) transmission range is very wide. These-satellites-are-usually-located-in-geosynchronous-orbit As long as three communication satellites in GSO orbit can receive/transmit signals covering the entire surface of the earth, they are quite suitable for the directional needs of ground antenna reception. As early as the 1990s, people began to use low-orbit satellite communications technology to connect to the Internet broadband, but why the sudden rise in the last 10 years of large-scale projects boom? First: satellites placed in geosynchronous orbit are far from the surface, signal propagation will be delayed (may reach hundreds of milliseconds), coupled with the high cost of high orbit communication satellites (past manufacturing and launch a high orbit communication satellite cost about $ 100 ~ 400 million), usually only by the country-led program development, can not catch up with the recent mass production of small satellite commercial boom. Second: if signals are placed too close will interfere with each other, so there are certain spacing requirements. That’s why the number of satellites that can be stuck in geosynchronous orbit is very limited. Third: It is difficult to for high orbit communication satellite orbit cover high latitude areas, especially the polar regions. Fourth: the rocket launch costs has reduced because of reusablet. SpaceX Falcon rocket can also transport a large number of small satellites into low Earth orbit, significantly enhance the competitiveness of low-orbit communication satellite system deployment. In fact, Space X’s Starlink plan is far ahead the world’s four major low-orbit communication satellite plan.

The importance of low-orbit satellite

The U.S. House of Representatives Speaker Pelosi’s visit to Taiwan has caused tensions in the Taiwan Strait to rise again. The Chinese authorities announced that the People’s Liberation Army will conduct a three-day military exercise around Taiwan from the 4th, the military industrial concept stocks are moving, previously in the Russian-Ukrainian war shine low orbit satellite also as a part of national defense strategy, related concept stocks such as Jianhan, Huatong popularity,according to the Business Times. Taiwan's-external-links-mainly-through-the-sea-cable-and-international-links Low-orbiting satellite for Taiwan at the same time with commercial and strategic value, Taiwan’s external links mainly through the sea cable and international links, once destroyed fear of becoming an island, so Taiwan’s leader Tsai Ing-wen proposed six core strategic industries, in addition to the national ship national manufacturing, national aircraft national manufacturing, and further into the aviation and space industry, the implementation of the “Space Development Act” from 2022, officially entered the first year of space development. Recently, due to the Taiwan Strait issue, the topic of low-orbiting satellite has regained popularity. After completing the integration of Chongqing factory and Vietnam factory last year, the first low-orbit satellite product has been sent to the sample in small quantity recently, aiming to start mass production in 2023, and the second quarter revenue returned to the growth track after four quarters of absence, and the single quarter revenue reached NT$1.175 billion, an annual growth of 23.74%.

PCB manufacturers doubled their performance

In addition, HDI PCB leader Huatong SpaceX’s Starlink of the main printed circuit board supplier, with successful experience has been with 4 to 5 satellite customers to start cooperation, the legal person predicts that Huatong this year in the low-orbit satellite revenue is expected to double the growth of last year, the overall revenue will challenge the historical peak. Huatong’s cumulative revenue in the first half of the year reached 33.882 billion RMB, an annual growth of 31.51%, has hit a record high for the same period in the past year. After entering the second half of the year, Huatong’s new production capacity has been in place. In the U.S. new product injection, as well as the steady contribution of low-orbit satellite, with the development of wearable devices, electric vehicles and other business opportunities, the performance of the third quarter is highly anticipated. Huatong chairman mentioned at the shareholders meeting on June 9, currently two to three thousand satellites in the sky, and hundreds of thousands of ground receiving equipment with PCBs, almost all manufactured by Huatong, low-orbit satellite LEO is a burgeoning industry, Huatong will continue to layout. Huatong’s growth momentum this year mainly comes from the new products of the U.S. cell phone manufacturers and satellite communication products. Looking ahead to the third quarter, into the peak season of Apple’s new machine pull, Huatong PCB applications in the new iPhone will be released in mid to late July, Huatong also added 10-15% soft board production capacity in the second quarter, 10-15% HDI capacity in the third quarter, to promote the third quarter revenue up. In addition, according to industry sources, Unitech printed circuit board order visibility has been extended to October, as its HDI PCB boards have entered the supply chain of low earth orbit satellites.A small amount of low-orbit satellite products have been shipped in June, and the subsequent volume can continue to enlarge. HDI-PCB-boards-have-entered-the-supply-chain-of-low-earth-orbit-satellites Satellite communications industry, including the satellite launched from the sky, ground receiving equipment, PCB accounts for a not insignificant output value, there are also many Taiwan factories have made real results, such as: ①. HDI factory Huatong (2313) ②. PCB factory Jingpeng (2355), Unitech (2367) ③. Tin products factory Sheng trade (3305) ④. Copper foil factory Jinju (8358) ⑤. CCL factory Taiwan Optoelectronics (2383), etc. Market research firm TrendForcepredicts that the global satellite industry output value will reach $308.3 billion in 2023, of which, the global ground equipment output value is the largest, accounting for about 51% of the proportion in 2021. the-global-ground-equipment-output-value-is-the-largest Taiwan Circuit Board Industry Association also recently cited data pointed out that the global four low-orbit satellite industry planning the size of the galaxy up to 58,525, has been through a period of high uncertainty, industry scale enlargement, meaning that more supply chain manufacturers will have the opportunity to participate, but also Taiwan manufacturers where the opportunity, the next few years, Taiwan circuit board-related products output value has the opportunity to accelerate growth.



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