With SpaceX's first public earnings report approaching, investors are looking for fresh insight into the company's operations and future satellite deployment plans, viewing the results as an important barometer for the global satellite communications market.
Industry sources familiar with the satellite supply chain said SpaceX continues to rely heavily on Taiwanese and Japanese printed circuit board (PCB) manufacturers for satellite products, with much of the production shifted to facilities in Thailand and Vietnam as part of a broader supply-chain diversification away from China.
Among Taiwanese suppliers, Compeq Manufacturing remains the leading supplier of PCBs used in satellites, while Meiko Electronics and Unitech Printed Circuit Board share orders for ground terminal PCBs. Upstream materials suppliers, including copper clad laminate (CCL) makers Elite Material (EMC) and Taiwan Union Technology, are also benefiting indirectly through their PCB customers.
US plant raises questions, but threat stays limited
SpaceX CEO Elon Musk has expanded efforts to localize electronics manufacturing in the United States, establishing semiconductor wafer fabrication and advanced packaging operations in Texas while relocating part of the company's PCB production from Los Angeles to the state.
Although industry reports have suggested the new PCB operation continues to face capacity constraints and relatively low production yields, the initiative has raised concerns that Taiwan could eventually lose part of its SpaceX business.
Taiwanese PCB manufacturers, however, said order allocations for SpaceX satellite programs remain unchanged. They expect the Texas operation to pose little competitive threat over at least the next three years, underscoring Taiwan's entrenched position in commercial satellite PCB manufacturing.
According to supply-chain sources, the Texas facility is intended primarily to support US defense and military programs by producing relatively small volumes of highly sensitive PCB products while also serving as a platform for early-stage development of next-generation technologies. The strategy is aimed at reducing supply-chain risks for critical components rather than replacing established commercial suppliers.
Industry sources also said Musk previously invited several Taiwanese PCB manufacturers to establish production facilities in the United States. After evaluating the proposal, however, companies ultimately declined because of significantly higher manufacturing costs and the relative immaturity of the local supply-chain ecosystem.
Upgrade cycle keeps PCB demand humming
Taiwanese PCB suppliers expect satellite demand to remain healthy as next-generation satellite constellations move into deployment.
Amid an ongoing satellite upgrade cycle, customers have accelerated procurement in 2026 compared with previous years. With shortages of upstream materials gradually easing, shipments of both satellite PCBs and ground terminal boards are expected to increase sequentially throughout the year.
Compeq said shipments for satellite applications in the first quarter of 2026 fell short of expectations because of shortages of CCL materials. Supply constraints began to ease during the second quarter, however, allowing customer demand to recover.
The company's second rigid PCB plant in Thailand is scheduled to gradually ramp production during the second half of 2026, providing additional capacity for satellite customers.
Compeq said its largest customer already operates more than 10,000 satellites in orbit and plans both higher launch volumes and product upgrades in 2026 and 2027. Meanwhile, its second-largest satellite customer has entered a more stable deployment phase and is expected to launch around 1,000 satellites over the next two years, providing another important growth driver.
Unitech scales up Thailand output
Unitech said satellite applications accounted for approximately 20% of revenue during the first half of 2026, slightly below expectations because of slower-than-planned production ramp-up at its new Thailand facility and temporary product adjustments by its second-largest customer.
The delayed orders are expected to resume in the third quarter.
The company's Thailand plant entered trial production during the second quarter and is scheduled to begin mass production in the third quarter, initially focusing on PCBs for satellite ground terminals.
Unitech also said it has secured next-generation satellite PCB business from its largest customer, which is expected to lift satellite applications to more than 30% of total revenue during 2026.
Competition heats up as market matures
As the satellite industry shifts from technology development toward large-scale commercialization, competition among PCB suppliers is becoming increasingly intense.
In addition to established suppliers such as Compeq, Unitech and Meiko, other Taiwanese PCB manufacturers—including Chin-Poon, Allied Circuit and First Hi-tec Enterprise—are actively seeking customer certifications and opportunities to enter the satellite supply chain.
Article translated by Scarlett Yu and edited by Jerry Chen
