【COMPUTEX 2025】Taiwanese National Space Team Mobilizes Heavy Major Forces in Establishing B5G National Defense Starlink

As Beyond 5G enters the commercial stage in 2024, not only has it enhanced the existing 5G communication performance, but also incorporated satellite communication and AI intelligence functions. This technology paves the way for the integration of “sea, land, air, and space” with 6G in the future, and also drives the commercialization boom of low earth orbit communication satellites.

In response to this trend, the National Science and Technology Council has extended Taiwan’s third-phase “Long-Term Program for National Space Technology Development” to 2031, and is also scheduled to launch the first B5G communication satellite in 2027 to accelerate Taiwan’s progression towards the era of communication satellites.

Assimilation between B5G and AI to Eliminate Blind Spots in Global Network Once and For All

In recent years, the commercialization boom of low earth orbit (LEO) satellites has intensified, with development being traced back to the inception of modern satellite communications, marked by the launch of Sputnik 1, the first artificial satellite, by the Soviet Union in 1957, which ushered humanity into the space age. In 2015, SpaceX CEO Elon Musk announced the Starlink project, and began launching thousands of LEO satellites in May 2019 to achieve global coverage, which sparked a worldwide commercialization frenzy. This has also triggered a fierce competition among nations for “sovereign constellations.”

TrendForce’s IAR Research Director, Kelly Hsieh, stated that LEO satellites have driven the boom in direct-to-device (D2D) satellite equipment, making interoperability and connectivity the key focuses for the future development of advanced communications. Particularly, the application of AI and machine learning in space technology has emerged as a new viral trend, enabling intelligent connections between space systems/technologies such as satellites and ground stations, thereby effectively enhancing decision-making speed.

Additionally, the full marching of mobile communications towards the B5G/6G era, as well as the incorporation of LEO satellite communication and AI technology, would accomplish high efficiency, high reliability, ultra-low latency, and achieve advanced communication under the goal of sea-land-air-space integration.

In fact, one of the major driving forces behind the boom in LEO satellites is the continuous cost reduction in rocket launches. This is particularly evident with SpaceX’s Falcon 9 rocket, which, through reusable technology, has lowered the cost per kilogram of payload to approximately US$1,500. Future transport with the Starship rocket is expected to further reduce this to around US$100 per kilogram. Additionally, with the miniaturization of satellites (especially the advantage of large numbers provided by CubeSats), the Falcon 9 can typically carry at least 60 satellites at a time, which is another important factor contributing to the significant reduction in launch costs.

Hsieh added that the progression of semiconductor technology has yielded smaller, lighter, and cheaper satellites, while the module design has also brought down the cost of production by a significant margin. CubeSats, in particular, cost less than NT$1 million, and weigh 1-10kg, which lower the entry barrier to satellite communication extensively.

Moreover, the integration of B5G/6G with LEO satellite communication further bridges the digital divide, making the ultimate goal of global network “no blind spots” and “last mile” coverage achievable. This also lays a solid foundation for smart transportation centered around EVs in the future. All these factors contribute to the intensifying commercialization boom of LEO communication satellites.

Taiwan’s Space Industry Chain Readies for Establishing Taiwan’s Own Starlink

The government of Taiwan has included the space industry in the “Six Core Strategic Industries.” According to the first (1991-2006) and second (2004-2018) phases of the ” Long-Term Program for National Space Technology Development”, successful execution of missions such as FORMOSAT-1, -2, -3, -5, and -7 has not only cultivated space talent and technical capabilities, but also initially demonstrated the prowess of independent satellite development. The government has continued to invest over NT$25 billion in the third phase (2019-2028) of the program, with the goal of establishing Taiwan’s space industry chain. To further promote the development of the space industry and enhance space technology capabilities, Taiwan implemented the “Space Development Act” and the “National Space Organization Act” in 2022.

In 2022, the outbreak of the Russia-Ukraine war saw Musk’s Starlink play a crucial role in communication and command operations for Ukraine against the Russian invasion. Additionally, the volcanic eruption in Tonga that year damaged the nation’s main submarine cables, prompting the government to consider LEO satellite deployment plans. At that time, the Ministry of Digital Affairs (then known as the Digital Ministry) not only planned the “Emergency or Wartime Application of Emerging Technologies to Strengthen Digital Resilience of Communication Networks Verification Program”, but also proposed the “1.5 Generation LEO Communication Satellite Constellation Development and Industrialization Plan” to the Legislative Yuan, seeking a budget of NT$40 million to enhance the cybersecurity and testing of LEO satellites.

In January this year, Taiwan experienced repeated incidents of undersea cables being severed. Given the increasingly tense geopolitical situation, such risks are likely to increase. To reduce the possibility of a complete communication blackout in Taiwan, Chunghwa Telecom signed an agency agreement with OneWeb in 2024 for LEO satellite services in Taiwan. Consequently, Taiwan can now enjoy satellite coverage across the entire island.

In addressing the aforementioned crises and risks, aside from facilitating existing low Earth orbit satellites, the establishment of a “Taiwanese version of Starlink” has become a crucial priority in future space technology development plans. The National Science and Technology Council plans to submit a revised version of the third-phase space program to the Executive Yuan by the end of the year, extending the implementation period from the original 2028 to 2031, and increasing the budget from NT$25 billion to NT$40 billion. Although the projected launch date for the first B5G LEO communication satellite will be postponed from 2026 to 2027, the comprehensive deployment of the “Taiwanese version of Starlink” is now certain. More importantly, this initiative allows Taiwan’s space technology development to take a significant step towards communication satellites, in addition to the initial remote sensing and weather satellites.

TASA stated that the proposed amendment to Phase III of the National Space Program, as submitted by the National Science and Technology Council to the Executive Yuan, is still pending official approval. The relevant details, plans, and timelines will only be finalized upon ratification by the Executive Yuan. The versions of the plans or timelines currently reported are part of various drafts presented during the revision process. The full scope and specifics of the program will become clear once the plan is officially approved and announced.

Expansion of Taiwan’s Satellite Industry to Create New Commercial Opportunities for LEO Satellites

Apart from SpaceX, the current mainstream LEO satellite operators also include the UK’s OneWeb, Amazon’s Project Kuiper from the US, and Canada’s Telesat. As of the end of last year, the number of satellites launched by each company is as follows: SpaceX has launched over 7,000 satellites (with more than 4 million global users); OneWeb has launched over 600 satellites (with a second-phase target of over 3,000 satellites yet to be executed); Project Kuiper has a medium-to-long term goal of over 3,200 satellites, having launched two satellites in 2023, but its launch plans have been repeatedly delayed, with mass launches expected to start in 2025; Telesat has so far launched only one test satellite, with formal launches set to begin in 2026, aiming for a total of 298 satellites.

Driven by the commercialization boom, the global LEO satellite market is experiencing rapid growth. According to the 2024 annual report by the Satellite Industry Association (SIA), the total global space economy reached US$400 billion in 2023, with the satellite industry accounting for 71% at US$285 billion under a YoY growth of 2%.

In the segmented revenue breakdown of the satellite industry in 2023, ground equipment generated the highest revenue (53%), reaching US$150.4 billion. This was followed by satellite services, with a revenue of US$110.2 billion at approximately 39%. Satellite manufacturing revenue stood at US$17.2 billion, making up about 6%, while launch services had the smallest share (0.3%) at US$720 million. The global space economy is expected to surpass US$1 trillion by 2040, with the satellite industry accounting for over 80% at US$925.2 billion then.

According to estimates by TrendForce’s IAR division, the global satellite market value was US$308.3 billion in 2023, before arriving at US$327.8 billion in 2024 (6.3% YoY growth), and is projected at US$356.6 billion in 2025 (8.8% YoY growth).

Taiwanese companies are actively participating in the supply chains of major international LEO satellite operators, as well as domestically produced satellites. Currently, there are at least 40 companies involved in the international LEO supply chain, including MediaTek, WIN Semiconductors, Foxlink, AcBel, WNC, EMC, and Compeq. As for “Triton”, Taiwan’s first independently designed and manufactured meteorological satellite by the Taiwan Space Agency (TASA), has incentivized the collaboration of 20 Taiwanese companies and research units.

Hsieh stated that among the four main sectors of the LEO satellite industry chain (upstream satellite manufacturing and ground equipment, midstream satellite launch, and downstream satellite services), Taiwanese companies are primarily concentrated in the supply of components and the manufacturing and assembly of ground equipment. Citing a research report from TrendForce’s IAR division, Hsieh noted that the total output value of Taiwan’s satellite industry reached NT$246.7 billion in 2023, with ground equipment accounting for the highest share (94%), while satellite manufacturing and services each accounted for about 3%. The total output value is expected to further grow to NT$284 billion in 2024, with ground equipment’s share rising to 95% then.

As early as the Tsai administration, the third-phase space program was planned with the intention of creating a national team for the B5G LEO satellite industry. With the budget increasing to NT$40 billion and the Taiwanese version of Starlink expecting to be successfully developed by 2027, the national team’s lineup and technical capabilities are bound to reach new heights, which would cultivate Taiwan’s competitive advantage in the global LEO satellite market as a result.