The Taiwan Banker

Space, the final frontier – Star Trek, 1966 In the 6th century BC, the Greek philosopher Thales of Miletus looked up at the endless starry sky and began to summarize the laws of the stars with theories, rather than myths. Subsequently, mankind stepped out of the wasteland controlled by the will of the gods. It is said that Thales successfully predicted the impending olive harvest by observing celestial phenomena, and contracted oil presses in major production areas in advance. Sure enough, the farms had a good harvest, and he dominated the oil pressing business, making him extremely wealthy. If this story is true, then this may have been the first person in human history to use knowledge of space for profit. Since then, space has become a perennial pursuit. From astrology to space tourism, for the past 2,000 years, we have constantly pushed the limits. The space industry has accelerated sharply over the past 10 years. In 2011, the world had launched only about 1,000 satellites. Thirteen years later, that number exceeded 10,000. The space industry was valued at approximately US$384 billion in 2022, nearly 80% of the value of the global semiconductor industry. Bank of America estimates that its output will reach US$1.4 trillion by 2040. This constitutes a significant opportunity. In the United States, SpaceX, founded by Elon Musk, and Blue Origin, founded by Amazon founder Jeff Bezos, are both in operation. Manned space tourism is no longer science fiction. In the even more ambitious global broadband service segment, Starlink, founded by the former, is expected to launch more than 5,000 low-orbit satellites; and Bezos is expected to launch more than 3,200 low-orbit satellites. The two adventurers compete from the ground to the sky. Outsiders watch the excitement, but insiders see endless opportunity. Amid this space industry boom, Taiwan has major opportunities. Due to geopolitical factors, led by the United States, the space industry will list Taiwan as their first supply chain choice. Our 10 years of solid experience in the semiconductor and ICT industries make Taiwan indispensable for the development of low-orbit satellites. Also, from Formosat-1 to Formosat-8, which will be launched next year, we can strive not only for self-production, but also launch and application. This time, we should not just be satisfied with component supply. Many venture capital firms have entered the market, and the next unicorn may be born in the space industry. The financial industry has already made initial contact through bank financing and space insurance, but its involvement is still in the early stages. This is a blue ocean market with endless potential, for those brave and ambitious enough to bear the risks. Is Taiwan’s finance industry ready for lift-off?