Wonderful Hi-Tech expects rising sales from LEO satellite equipment

Cable maker Wonderful Hi-Tech has become a supplier of transmission cables used in ground receivers for low Earth orbit (LEO) satellites thanks to its experience in making directly buried cable products, according to company CEO Paul Chang.

In addition, with the growth in the networking and automotive cable businesses, the company is aiming to achieve a 20-30% on-year increase in 2022 revenues and even higher percentage growth in profits.

Currently, Wonderful’s plant in Taiwan mainly handles the production of networking cables including CMP and CMR ones, while the plants in Thailand and Vietnam mainly manufacture automotive and IT cables for local automakers and home appliance makers. Its plant in China mainly produces cables for consumer electronics, medical care devices and home appliances.

Although 5G infrastructure is becoming popularized, demand for LEO satellites still exists in remote areas and in the middle of oceans. The company has already started shipping products to existing clients and is currently negotiating with a potential client for orders, Chang said.

Wonderful expects great business opportunities from the satellite business in the upcoming years, as in 2020 around 50% of the space economy was generated by satellite’s ground equipment, 44% satellite applications, 5% satellites themselves and 2% the manufacturing of satellites.

Wonderful also expects metaverse to be a potential business opportunity as increasing demand for AR/VR devices is expected to boost needs for better network communication equipment. DigiTimes Asia