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Jul 8
Satellite sovereignty goes global: Asia and Europe move to cut the Starlink cord

Governments across Asia and Europe are moving to build or protect homegrown satellite communications, driven by a shared anxiety: that critical connectivity should not rest in foreign, privately controlled hands. Recent policy moves in Japan, China, and the EU reveal the same instinct — technological sovereignty in orbit — pursued through starkly different tools.

Universal Microwave Technology (UMT) said June revenue reached NT$257 million (US$8.01 million), up 89% from a year earlier, while first-half 2026 revenue climbed to NT$1.922 billion, a 70% increase from the same period in 2025. The Taiwanese supplier said the second quarter was affected by a customer redesign that shifted shipment timing, but demand trends in the low-Earth-orbit satellite market remained unchanged.

HDI board maker Compeq Manufacturing Co. said strong shipments of low-Earth-orbit satellite and consumer electronics boards, along with higher volumes and prices in its AI line, helped it avoid the usual second-quarter slowdown. The Taiwan-based company expects more momentum in the second half of 2026, with implications for global satellite, AI, and optical networking supply chains.

Global drone demand continues to heat up, and Taiwanese manufacturers are aggressively expanding overseas. Industry players say the market's most urgent focus has shifted from price and delivery time to competition among trusted supply chains.

Amazon is preparing to launch its initial internet service for its low Earth orbit satellite network later this year, marking a key step in its attempt to turn Amazon Leo from a delayed space project into a commercial broadband platform.

Europe's defense industry is running into a structural bottleneck: the semiconductors needed for modern missiles, drones, radar, communications, and electronic warfare cannot be produced domestically at scale. Even as defense budgets rise across the EU, the industrial base needed to turn spending into capability remains constrained by dependence on foreign microelectronics.
With supply chain inventory normalization largely complete, Sonix Technology (Sonix) has seen business momentum recover. The MCU supplier is benefiting from resilient demand for microcontrollers used in medical monitoring devices and steady shipments of multimedia image-processing chips, giving it better order visibility for 2026 than in previous years. Meanwhile, the company's drone business has entered niche commercial and industrial applications, providing a stepping stone toward higher-end markets.
US drone maker AeroVironment has worked closely with Taiwan-based supply chain partners over the past three years, with the company noting that many of its product components are now co-developed and manufactured by both sides. Moreover, the defense tech company has also established a direct communication channel in Taiwan in recent years to support Taiwan's national defense resilience program.
Sharp is moving deeper into satellite communications as it seeks to extend its networking technologies beyond consumer devices and into industrial infrastructure.
The annual Shangri-La Dialogue, considered the most important defense and security conference in the Asia-Pacific region, was held this year in Singapore at the end of May. For this year's conference, however, China kept a low profile by sending a deputy president from its National Defense University, a move seen as its attempt to minimize the significance of the conference.

Japan is preparing to support a Rakuten-led low-Earth orbit satellite communications project, as the country looks to reduce reliance on foreign satellite networks and build a domestic direct-to-mobile connectivity layer for disasters, remote areas, and future digital infrastructure.

The Taiwan Stock Exchange (TWSE) Listing Review Committee approved TMY Technology Inc.'s application to list on the Taiwan Innovation Board (TIB) on June 30. The proposed listing remains subject to final approval by the TWSE board of directors.