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Unitech Printed Circuit Board (2367.TW) has expressed optimism about the demand for Low-Earth Orbit (LEO) satellites. Revenue generated from the sector will significantly surpass the previous year's level in 2024, according to company VP Kanty Wu.

Starlink is expanding the number of satellites it launches, which now exceeds 5,000. The need for LEO satellites is growing as more countries and regions offer Starlink services. As a result, Unitech PCB anticipates a positive market outlook in this area.

The majority of Unitech PCB's overall LEO satellite sales in the second quarter were for ground reception applications, with sky satellites accounting for less than 20%, according to Wu. However, as customers' ground receivers were replaced with new products with a greater area and higher unit price, the average selling price (ASP) grew by 10-20%, resulting in a significant increase in the company's gross profit margin.

Unitech PCB has gained two benefits in the development of LEO satellites, according to company chairman Lawrence Chang.

LEO satellites mostly use the ultra-high frequency communication band, which is banned for PCB manufacture in China. Presently, Unitech PCB and its Taiwanese counterparts, such as Compeq Manufacturing (2313.TW), have received substantial orders from US consumers.

Furthermore, Chang expresses strong confidence in the company's technological superiority, namely in the areas of HDI and any-layer products. These products have a long-standing track record, a substantial manufacturing capacity, and enjoy a high degree of trust among customers and the supply chain.

Two other markets Unitech PCB is focusing on are automotive and smart handheld devices. According to Wu, AI PCs will drive new growth in demand for high-speed materials in the second half of the year, while AI servers and high-speed network systems are also in high demand. New iPhone specifications and features are also expected to result in a surge of device replacements.

Editor：Lulu

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