The strategic importance of satellite communication, as demonstrated by Starlink during the war in Ukraine, has led to a surge of interest in low Earth orbit (LEO) satellite communication in Taiwan.
Thanks to rising internet subscribers and data consumption, as well as more enterprises migrating to cloud and government initiatives for Digital India, India rapidly emerges as one of the major data center hubs, witnessing increasing investments in the sector.
After the operation of the indigenously developed NavIC navigation system, India is on track to encourage mobile devices, including phones and vehicles, to support NavIC with potential incentives.
China-based Transsion Holdings, which primarily targets the African handset market, has expanded into new markets along with its chip partners MediaTek and Unisoc, according to industry sources.
Samsung is reportedly evaluating making telecom gear in India, as manufacturers see increasing geopolitical risk in China. Samsung may have to wait for more orders in India as well as from overseas before making such a decision.
Elton Yang, senior VP at Quanta and president of Quanta Cloud Technology (QCT), signals an unrelenting momentum in the AI server market and dispels concerns over any imminent demand drop-off. Yang underscores that the only pressing concern right now is the abundance of orders and a concurrent scarcity of GPUs. However, he optimistically predicts that the supply-demand imbalance will gradually ease by 2024.
Taiwan, a pivotal player in the global information and communication supply chain, is strategically positioning itself to enter the thriving international market for low-earth orbit (LEO) satellites while fortifying its digital resilience. The Taiwan Space Agency (TASA) has outlined its ambition to launch Taiwan's inaugural homegrown communication experimental satellite in 2025, with the goal of capitalizing on opportunities within the next-generation communication sector.
The unexpected release of Huawei's Mate 60 Pro has captured the public's attention due to its support for satellite calling capabilities, reigniting buzz about satellite to cellular communication.
In order to establish a communication network with broader coverage and higher transmission speeds, Foxconn is actively investing in next-generation communication technologies and applications such as 6G and low earth orbit (LEO) satellites.
SpaceX employed Starlink to assist Ukraine in overcoming communication barriers at war, showcasing the adaptable and resilient communication capabilities of satellites. In response to this development, Mantaray, a company originally founded in the US and operating in Taiwan, has recognized not only promising opportunities in maritime satellite communication but also the shortcomings of the prevailing satellite communication technology time-division multiple access (TDMA). Consequently, Mantaray has devised preamble sense multiple access (PSMA) satellite communication technology as a proactive strategy to aggressively target the Asia-Pacific market.
Despite the sluggish state of the consumer electronics end market, various players are strategically positioning themselves in niche markets. Aerospace and defense industries remain the focus for Taiwanese gallium arsenide (GaAs) manufacturers like Transcom, with its product lines expanding into microwave, radio frequency (RF), radar, satellite communication, and participation in European exhibitions such as EuMW 2023 in mid to late September. Compared to the order visibility of mobile power amplifier (PA) chips, which is still dependent on seasonal demand trends and inventory clearance, visibility for PA application in defense contracts has already extended through the end of 2024.
In a surprising move, Huawei unveiled its latest 5G smartphone at the end of August, strategically timing its release ahead of Apple's anticipated 2023 smartphone launch. Beyond its notable 5G capabilities, Huawei's new smartphone has garnered attention for its groundbreaking satellite communication feature. This development positions Huawei as a contender in the satellite communication arena, putting it in direct competition with Apple.
Passive components manufacturers have been adjusting their inventory since the fourth quarter of 2021. Sources said the industry is on the upswing from the lowest point, with the inventory generally returning to a healthy level. The demand will rebound gradually.
Huawei's re-entry into the 5G smartphone market has caused a stir and caught the industry off guard by its unveiling of the Mate 60 Pro, its newest flagship smartphone. While the primary focus remains on whether Huawei can reclaim its peak position in the smartphone market, there's widespread speculation about whether the phone genuinely integrates a 5G chip. Reports suggest that the satellite call service comes with a monthly fee of CNY200, offering 200 minutes of communication, but its usage is restricted to within China.
A major recent breakthrough in the low earth orbit(LEO) satellite sector has been the long-awaited resurgence of profitability for SpaceX in the first quarter of 2023, marking the end of a two-year period of financial losses. According to a report by The Wall Street Journal (WSJ), SpaceX recorded a revenue of US$1.5 billion and a profit of US$55 million in the initial quarter. Notably, the revealed financial statements for 2022 also disclosed that SpaceX's total expenses in the same year reached US$5.2 billion, signifying a substantial rise from the $US3.3 billion spent in 2021. Moreover, revenue climbed to US$4.6 billion in 2022, resulting in a reduction of the annual loss to US$559 million.
Representatives of information and communications technology (ICT) companies, as well as chief technology officers of telecom firms and system integrators in Taiwan, squeezed into a crowded conference room of the Cloud Computing and IoT Association in Taiwan on August 22 to exchange ideas with peers to learn about landing an emerging technology for implementation in Japan and elsewhere.
Over the past year, the discourse surrounding satellite communication has gained significant momentum. Smart phone heavyweights like Apple and Huawei have ventured into incorporating direct satellite connectivity features into their devices, which infuses vibrancy into the sluggish mobile phone market.
India-based conglomerate Reliance Industries announced more 5G and smart home offerings. The company said it will not miss the AI opportunities, planning to develop India-specific AI models and solutions.
The satellite industry is entering an integration phase, and customers from Europe, America, and Southeast Asia are all requesting the integration of medium- to high-orbit satellites with low-orbit ones, not only in the satellite side, but also in the ground reception end. While 2023 marks the starting year, the subsequent integration process is expected to accelerate, ushering in new business opportunities for supply chain players, according to industry insiders. .
As one of the key objectives, South Korea's K-Network 2030 strategy aims to strengthen and upgrade the country's network infrastructure while developing energy-efficient and fail-proof systems. Upgrading the backbone network, which is the core element, is an important part of such efforts, according to DIGITIMES Research's latest report covering South Korea's communication technology deployment.
Prosperity Dielectrics Co. (PDC) held an earnings call on August 18. The company said the application of large-sized multi-layer ceramic capacitors (MLCC) and chip resistors (R-Chip) will increase in the second half of 2023, thanks to the demand driven by EVs, charging stations, edge AI hardware, data centers and the Internet of things (IoT).
The adoption and application of DC microgrid is rising. The grid combines renewable energy, energy storage systems and end devices, enhancing energy conversion efficiency. It will see more application in EV charging.
Taiwan-based network device makers including Zyxel Group and Sercomm continue to see telecom customers engaged in inventory adjustments and remain cautious about their operations in the second half of this year, according to company sources.
According to Huawei's latest earnings report for the first half of 2023, the US-sanctioned telecom equipment giant reported sales of CNY310.9 billion, up 3.1% from a year ago, with net income reaching CNY46.63, a 209% growth year-on-year.
