The global aerospace and satellite industry did not experience a single, earthshaking breakthrough in 2025. Instead, it advanced through a series of consequential developments—subtle in isolation, but collectively transformative. The year marked steady progress across multiple fronts. The race in low-Earth-orbit (LEO) communications intensified. Space militarization accelerated. Early experiments in orbital computing emerged. Together, these shifts pushed the industry toward a more crowded, contested, and commercially driven space economy.
The global space industry is accelerating toward commercialization. But recent developments in South Korea and China underscore how difficult—and uneven—that transition remains. In separate incidents late last year, South Korea's startup Innospace failed to place its launch vehicle into orbit. Meanwhile, China's new Long March 12A rocket fell short of recovering its first-stage booster on its maiden flight.
Microcontroller (MCU) maker ENE Technology has officially entered the drone industry, partnering with Taiwan's HY Tech, Aeroprobing, and Egis to integrate communications, vision modules, and AI image processing and computing technologies. The company also established a new business unit staffed with drone experts to compete in the customized drone IC market.
The space industry is undergoing a profound transformation. What was once the domain of government agencies has become a strategic battleground. Commercial innovation, military priorities, and economic competition now converge beyond Earth's atmosphere.
Taiwan's integrated circuit design houses are accelerating shipments to the global drone market as US trade restrictions on Chinese manufacturers reshape international supply chains. The policy shift is forcing a realignment toward non-Chinese sourcing, enabling Taiwanese chipmakers to transition from low-volume defense contracts to large-scale commercial and consumer drone production.
AST SpaceMobile has launched its largest satellite, BlueBird 6, marking a key step toward providing 4G and 5G broadband directly to standard smartphones worldwide and accelerating the company's plans to build a global space-based cellular network, according to Bloomberg, Business Wire, and Investor's Business Daily.
Yao Sheng Electronic said it has secured a major printed circuit board assembly order from a US drone startup, underscoring progress in the Taiwanese manufacturer's push to move beyond lower-margin businesses and deepen its exposure to AI, semiconductor, and medical markets.
China has maintained a clear lead over the US in drone-related technology patents since 2016, highlighting a widening technology gap as Taiwan seeks to expand its domestic drone industry and reduce reliance on China-centric supply chains. The divergence underscores the scale of the challenge facing Taiwan at a time when governments worldwide are accelerating procurement of unmanned systems and reassessing supply chain security.
Unmanned aircraft are becoming central to modern military operations, driving a surge in government procurement that is reshaping Taiwan's drone industry. The US, Japan, and Taiwan have all announced large-scale drone purchases. But the rapid expansion is straining supply chains, production capacity, and delivery timelines. Industry executives say closer coordination and clearer division of labor across suppliers will be critical for companies seeking to secure contracts and scale output.
The Federal Communications Commission (FCC) will block the sale of foreign-made drones in the US, a decision believed to target Chinese market leader DJI and could prompt Taiwanese suppliers to accelerate investment in US manufacturing.
Japan's flagship heavy-lift rocket, the H3, suffered another setback on Sunday after its eighth flight failed, dealing a blow to the country's ambitions to strengthen its independent space capabilities.
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