Supplying satellites

The rising penetration rate of LEO satellite services is encouraging component manufacturers to integrate into the supply chains of Starlink and OneWeb, says TrendForce.

The global satellite market value is projected to grow from $283 billion in 2021 to $357 billion by 2025, at a CAGR of 2.6%.

Starlink produces and assembles key satellite components in its own Washington factory including payload channel elements, Ka-band antenna elements, filters, and separators.

OneWeb has an outsourced supply chain approach. It delegates the production of key satellite components to regional Tier 2 parts manufacturers. These components are then partially assembled by subsystem factories before being sent to OneWeb’s factory, OneWeb Satellite, for final assembly.

This open supply chain model allows many component manufacturers to work with OneWeb and facilitates their entry into the LEO satellite market.

TrendForce observes that large Taiwanese manufacturers integrating into Starlink’s supply chain tend to have more resources and structured systems, meeting Starlink’s stringent space testing requirements (e.g., random vibration tests, separation shock tests).

However, smaller satellite component manufacturers find it challenging to integrate into Starlink’s supply chain due to limited resources.