Since launching in 2020, SpaceX's Starlink satellite internet service has grown into the company's largest revenue driver, surpassing its rocket launch business and becoming central to investor expectations ahead of a potential IPO. But as Starlink scales past 10 million subscribers globally, its strategy is shifting in ways that could reshape its financial profile and competitive landscape.
In the final days before the Lunar New Year, a series of high-resolution satellite images began circulating on Taiwanese social media. They showed Barcelona Airport, Tokyo's National Stadium, Taiwan's coastline, science parks, and ports.
The 2026 US National Defense Authorization Act (NDAA), signed at the end of 2025, introduces significant new business prospects for Taiwanese companies by emphasizing Taiwan's security and cooperation in defense procurement. Key provisions include a US$1 billion Taiwan security cooperation initiative and authorization for the US Department of Defense (DoD) to establish a joint unmanned systems program with Taiwan starting March 1, 2026, focusing on co-developing drones and counter-drone technologies.
US President Donald Trump has requested a fiscal year 2027 defense budget of US$1.5 trillion. This represents a nearly 50% increase from fiscal year 2026's roughly US$1 trillion. Trump's goal is clear: rebuild a strong military. Experts expect the budget to significantly boost procurement for expanded naval fleets, advanced aircraft, and new nuclear missile programs.
The Taiwan-UK space supply chain collaboration has taken a significant step forward. Following the September 2025 signing of a five-year memorandum of understanding (MOU) between the Taiwan Space Agency (TASA) and the UK's Satellite Applications Catapult (SAC), Taiwan's Industrial Technology Research Institute (ITRI) is set to officially sign an MOU with the UK's largest aerospace industry association, ADS Group, on March 5.
Shield AI recently announced another contract with the National Chung-Shan Institute of Science & Technology (NCSIST). The two parties will jointly promote the research, validation, and deployment of AI flight control unmanned systems. This collaboration will integrate the US military's operational Hivemind platform into NCSIST's intelligent unmanned systems, assisting Taiwan in developing indigenous AI flight control technology. This technology is key for Taiwan's future establishment of drone swarm combat capabilities.
Global investment in the space industry climbed to US$12.4 billion in 2025, surpassing the previous peak of US$10.9 billion set in 2021, according to industry estimates. Seeking to capture a greater share of that growth, Taiwan's national space agency has announced the creation of the island's first space-focused startup accelerator, aimed at lowering barriers to entry and strengthening its position in the global supply chain.
Win Semiconductors (Winsemi), a GaAs wafer foundry, held its earnings conference on February 11. Its fourth-quarter 2025 consolidated revenue reached NT$4.79 billion (approx. US$152.65 million), up 7% quarter-over-quarter and 29% year-over-year, slightly above expectations. Full-year 2025 revenue totaled NT$16.64 billion, down 5% year-over-year.
For Taiwan, the threat of a Chinese blockade is not merely military — it is industrial. Beijing's tightening grip on global technology supply chains has made clear that any conflict could sever the island's access to the materials and components its defense sector depends on. Taipei's response is to build a defense industry that can sustain itself from within.
The global space economy is entering a period of rapid expansion, with global space tech private investment reaching a record US$12.4 billion in 2025. Against this backdrop, Taiwan's National Space Organization (TASA) has launched the country's first space accelerator, "TASA iSPARK." Drawing from international ecosystems such as NASA SBIR Ignite and ESA BIC, the initiative aims to help Taiwanese companies leverage their existing supply chain strengths and translate them into space-qualified performance, enabling entry into the global space supply chain.
Tesla CEO Elon Musk has announced the merger of xAI and SpaceX, creating a new entity valued at an astonishing US$1.25 trillion. However, some have raised concerns that this bold strategic move may prove to be a financial yoke on SpaceX, especially since, from a technical standpoint, it makes more sense to merge xAI with Tesla than with SpaceX.
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