News briefing

Taiwanese PCB manufacturers (including NEE, CHPT, and others) have demonstrated the capability to produce PCB products for satellite communications. Currently, mass production projects are underway and are the Taiwanese manufacturers engaged in these projects are expected to become the representatives of the emerging niche market.

Impact analysis 

According to the survey of production statistics by Taiwanese businessmen in the first quarter of 2019, the applications on Aerospace only amounts to about 0.1% in view of the total output value. Aerospace is also considered to be a rare and niche application area. In the past, Taiwanese manufacturers had mainly based their focus on the 3C market, with emphasis placed on the increased efficiency of mass production. This has consequently resulted in the investment in production capacity and the layout of product lines and has rarely involved focus in the aerospace field. After all, the market of the aerospace field, when compared with the traditional 3C market, is different in terms of the target customers, product requirements, production quantity, product unit price, and single-chip area. In addition, not all PCB manufacturers have shown an interest in satellite communications. 

However, the number of alternative satellites launched around the world includes communications, navigation, scientific exploration, military, meteorology, and others and amounted to nearly 350 satellites in 2017. These satellites have also been incorporated with much more diversified applications and frequent use. As for the industrial chain of the satellite, they have encompassed satellite manufacturing, satellite services, and ground equipment manufacturing. Moreover, the value of satellite manufacturing amounts to approximately US$15 billion. Although such an amount is far less than that of the 3C market, there are relatively fewer competitors in the industrial satellite chain and products with higher added values. As such, the margin of product profitability is relatively higher.

In the past, Taiwan has successively launched a series of satellites named after Formosa. In June, Taiwan will commission the United States to launch a total of six FORMOSAT-7/COSMIC-2 meteorological satellites, while the component supply chain required for Taiwan to manufacture satellites will be implemented through a step-by-step process. Since Taiwan has become the leading PCB manufacturer globally, its establishment in satellite PCB will not prove difficult for Taiwanese manufacturers. Especially in the current popular trends of high-frequency applications, input by more successful manufacturers on the high-frequency microwave can help to introduce their PCB for the use on satellite applications. Conversely, the key problem in satellite communications includes the product certification and the fact that the risk costs of satellite PBC is higher than that of 3C and the automotive market. Will the large-capacity manufacturers be willing to cut into this extremely niche market? Aside from their interests, will the small and medium-sized enterprises be able to afford the huge costs of product risks?