Demand for LEO Satellite User Terminals Explodes as Taiwanese Networking Firms Rush into Space Business

As global demand for space communications enters an explosive growth phase, Taiwanese networking equipment manufacturers are leveraging their high-spec manufacturing capabilities to aggressively enter the booming low Earth orbit (LEO) satellite market. In addition to Wellytek (6285-TW), which is already part of the supply chain, ZyXEL (3596-TW) and D-Link (2332-TW) have also announced successful partnerships, adding new momentum to their operations.

D-Link has successfully entered the supply chain of Starlink, the satellite internet project under U.S.-based SpaceX, and will fully supply dedicated switches for data exchange nodes in the LEO satellite network. Mass production and shipments are scheduled to begin in September this year, with an annual shipment target of 20,000 units. Given the extremely high requirements for information security and geopolitical risk in aerospace-grade communications, all products for this project are manufactured in Taiwan and comply with the highest regulatory standards, successfully demonstrating Taiwan's technological strength as a clean and trusted supply chain.

Wellytek continues to benefit from strong demand for LEO satellite user terminals. Analysts estimate that shipments from its major LEO satellite customers will more than double this year—from 6.5 million units last year to between 13 million and 15 million units.

Analysts project that LEO satellite-related products will account for 46.8% of Wellytek’s total revenue this year, rising further to 49.2% next year, becoming the primary engine for revenue growth. Combined with the volume ramp-up of 800G enterprise-grade switches starting in the third quarter, the company’s medium- to long-term outlook remains strong.

ZyXEL is also actively expanding beyond its traditional home networking segment, recently entering the satellite industry to develop user terminal products. The company is currently in active discussions with major European and American manufacturers, covering low, medium, and high Earth orbit satellite applications. As U.S.-based satellite broadband operators begin deploying their own satellite constellations, ZyXEL is actively pursuing orders for home terminal devices, expecting initial orders to materialize as early as the second half of this year, with significant results anticipated by 2027. These efforts, combined with its existing 5G FWA product line, are expected to drive the company’s performance to new record highs.