Microwave, mmWave communication device and antenna maker Universal Microwave Technology (UMT) is optimistic about potential demand for such products used in low Earth orbit (LEO) satellites, according to company founder and president Wu Tung-yi.
UMT reportedly has become a supplier of microwave and mmWave communication devices and antennas for SpaceX, OneWeb and Amazon, with these products used in gateways and terminal transceivers of LEO satellite ground stations and payloads of LEO satellites.
Wu said at a July 12 investors conference that shipments for such devices began in the second quarter of 2022 and are expected to increase sharply in the second half of the year.
SpaceX has launched more than 2,500 LEO satellites to make up its Starlink constellation for Internet access and OneWeb has also deployed over 400 LEO satellites. Amazon's Project Kuiper will deploy 3,236 LEO satellited but has not yet launched the first one.
Along with the increasing number of deployed LEO satellited, ground stations will keep increasing in number and demand for devices and antennas used in satellites and ground stations will keep growing accordingly. This will keep bringing business opportunities for UMT.
UMT generated sales revenues of NT$43 million (US$1.46 million) from products used in LEO satellites in June 2022, soaring 292% on year, and the overall gross margin for the month rose to 47% due to much higher gross margins for such products, Wu indicated.
In addition to SpaceX, OneWeb and Amazon, UMT has entered supply chains for four international makers of satellite systems, with shipments to kick off in the second half of 2022, industry sources said.
UMT posted consolidated revenues of NT$476.9 million, gross margin of 41.11% and net profit of NT$108.4 million for second-quarter 2022, leading to consolidated revenues of NT$918.9 million, gross margin of 38.57% and net profit of NT$162.1 million for first-half 2022.
Of first-half 2022 revenues, 46% came from microwave and mmWave communication devices and antennas, 41% from radio frequency antennas, 13% from engineering services provided for mobile telecom carriers and Internet service operators.
