In a windowless testing room deep in the French countryside, engineers from Taiwan's Auden Techno toiled for days to fine-tune antennas capable of linking to the swarms of low-Earth orbit (LEO) satellites being launched into space.
Getting hardware to beam data between these constellations and the ground is a crucial step toward realizing the promise of an interconnected space-based economy valued at trillions. It's also one that plays neatly to Taiwan's strengths as a technology manufacturing hub.
However, a significant challenge for Auden is the lack of local testing environments in Taiwan. "The establishment of local testing facilities would be a game-changer, allowing for continuous development and rapid iteration," says Sampson Duan, Auden's Marketing Director.
To address this limitation, Auden has invested in channel test simulators and partnered with QuadSAT, a Swedish company specializing in drone-based antenna testing solutions. This partnership aligns with Auden's current focus on unmanned aerial vehicle (UAV) applications while keeping aviation applications as part of their long-term strategy.
Navigating Costs and Supply Chain Dynamics
One major hurdle in the LEO satellite industry is the cost of developing and deploying satellite communication devices. Auden aims to produce user terminals at a cost below US$10,000, a challenging feat given the high costs of IC components. "Currently, the starting price for such devices is around US$15,000 to US$25,000," Duan explains.
A key challenge in this process involves modem integration, which requires coordination with multiple stakeholders, including Hughes, which works with OneWeb on certification. This arrangement has created certain challenges for Taiwanese manufacturers, who often find themselves at a disadvantage in the integration process.
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Auden and its peers rely heavily on foreign suppliers like Qualcomm for complex modems and other pricey chips. "The biggest challenge is getting affordable ICs from suppliers," Duan says. Taiwanese firms are ideally suited to undercut the traditionally high cost of satellite communications terminals. By working with Taiwanese fabless firms, Auden hopes to have more integration options and reduce reliance on international suppliers.
Geopolitical factors, particularly the US-China trade tensions, have also influenced the satellite industry. While these tensions benefit Taiwan by positioning it as a more reliable partner for Western countries, Auden emphasizes the strategic importance of diversifying satellite networks beyond American systems. "This ensures geopolitical balance and avoids over-reliance on U.S.-based networks, which is critical for the future of global communications," Duan observes.
Multi-Orbit Integration and the "3M" Approach
Multi-Orbit stands as a critical trend in the industry. This paradigm shift involves integrating satellites from different orbits—high, medium, and low—into a cohesive network. Such integration aims to enhance service reliability and coverage.
Auden's strategic focus aligns with the "3M" approach: Multi-Orbit, Multi-Satellite, and Multi-Network. This strategy involves utilizing various orbits and frequencies to enhance connectivity and reliability. "We are not just connecting to medium or high orbits but also using different beams to connect to various satellites," Duan elaborates.
Towards Satellite 3.0
The fusion of LEO and Geostationary Earth Orbit (GEO) satellites is emerging as a crucial trend. This integration allows a single device and service provider to seamlessly connect to diverse applications. Duan predicts that over the next five to seven years, the pace of this development will only accelerate.
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The company is not exclusively focusing on OneWeb, recognizing that flat-panel antennas are in high demand across all satellite operators. These terminals are particularly valuable for mobile applications, including maritime and land vehicles, where aerodynamics is crucial.
Satellite heavyweights like OneWeb, Kuiper, and Telesat may prove more receptive to embracing common standards than Starlink. Looking ahead, Satellite 3.0 envisions integrating electronic flat panel antennas with multi-orbit communication capabilities. This next-gen technology aims to provide seamless connectivity, whether on land, sea, or air.
Taiwan plays a crucial role in the development of phased array antennas. Advancements in semiconductor technology and signal processing are enabling the miniaturization and flattening of antennas vital for applications in maritime, aviation, and even autonomous vehicles. "The future of the satellite industry inevitably includes flat panel antennas," Duan emphasized.
Market Dynamics and Future Outlook
Duan highlighted an important distinction in market expectations, noting the difference between consumer electronics manufacturers' expectations for quick returns and the space industry's longer development cycles of five to ten years.
"Historically, surviving in this industry without going bankrupt meant you weren't in it long enough," Duan remarked, pointing to the tough times the satellite industry has endured. However, the recent surge in satellite applications and technological breakthroughs presents a promising future.
Duan stressed the need for talent cultivation and strategic collaboration to sustain this momentum. "We must harness national strength to focus on our respective specialties, ensuring each component is perfected and integrated into a complete system," he says. This holistic approach is vital for maintaining Taiwan's competitive edge in the global satellite industry.
