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Nov 12
China's US$225 million space computing venture confronts cost of taking data centers into orbit

Zhongke Nebula has registered in Hefei with CNY1.5 billion (approx. US$225 million) in committed capital, bringing state-backed investors and domestic technology suppliers together to develop space computing infrastructure. Commercial viability remains unproven.

Imagine a maintenance robot operating inside a fusion reactor, exposed to temperatures reaching 600 degrees Celsius and intense radiation, with an expected service life of 25 years. Developing electronics capable of surviving such conditions would be an extraordinary engineering achievement. But manufacturing the chips is only half the problem.
In a business incubator at County Durham's NETPark, the future of Britain's semiconductor industry was being discussed by people whose technologies rarely feature in global chipmaking headlines. Some develop radiation detectors for medical imaging; others design high-frequency chips for aerospace systems or electronics capable of surviving conditions where conventional silicon fails.
SpaceX and Tesla are advancing merger negotiations that could create a US$3.4 trillion conglomerate spanning electric vehicles, aerospace, and artificial intelligence, potentially setting a record for global dealmaking. An announcement could come as early as December 2026, although regulatory hurdles and the companies' competing interests in China and US defense remain significant obstacles.
DIGITIMES hosted a Tech Forum on developments in unmanned vehicles and Taoyuan's low-altitude economy, with Taoyuan Mayor Simon Chang, Qisda Chairman Peter Chen and Auden Techno Chairman Yu-Pin Chang among those attending. DIGITIMES Intelligence said Taiwanese companies are working to become a "reliable and trusted supply chain," while HY Tech CEO Yu-Tuan Chou expects the next phase of unmanned vehicles to focus on AI autonomy, unmanned operations and multi-vehicle coordination.
As the global satellite industry shifts toward standardization and high-volume production, demand is accelerating for satellite subsystems, communications hardware, and onboard computing systems. Leveraging its strengths in advanced semiconductor fabrication, electronic hardware, and high-precision manufacturing, Taiwan has emerged as an indispensable supply-chain partner for international space companies.
Space-based data centers could open a new market for low-power AI chips, but moving computing workloads into orbit presents challenges involving radiation, cooling, and hardware reliability. South Korean AI chip developer Rebellions is calling for government support to help companies establish a track record in space, while researchers recommend adapting existing processors rather than developing new chips from scratch.
NASA is accelerating construction of a lunar south pole base by selecting eight aerospace companies for the second phase of its Commercial Lunar Payload Services (CLPS 2) program. The companies will compete for lunar transport missions over 10 years, with a combined procurement ceiling of US$10 billion.
South Korea plans to develop small, medium, and large data centers in orbit under its K-Moonshot initiative, aiming to conduct its first in-orbit demonstration in 2028 and lay the groundwork for commercial space-based AI services before 2035.
A future communications network capable of detecting certain forms of eavesdropping may depend on something remarkably small: a semiconductor device designed to emit individual particles of light.
Taiwan will continuously elevate its self-reliant space technology capabilities while leveraging its long-standing strengths in semiconductors, electronics, telecommunications, and precision manufacturing, President Ching-Te Lai stated today (Nov. 9) as the 2026 Taiwan International Assembly of Space Science, Technology, and Industry (TASTI 2026) opened in the southern Taiwan city of Tainan.
On November 7, local US time, Elon Musk appeared remotely at the 33rd Baron Investment Conference in New York. During an hour-long conversation with Baron Capital founder Ron Baron, Musk repeatedly framed space-based computing power as a strategic asset.