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Space X financial troubles could impact Taiwanese suppliers

Taiwan tech’s fingerprints all over Space X satellites

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SpaceX's Crew Dragon spacecraft and Falcon 9 rocket are positioned inside the company's hangar at Launch Complex 39A at NASA's Kennedy Spa...

SpaceX's Crew Dragon spacecraft and Falcon 9 rocket are positioned inside the company's hangar at Launch Complex 39A at NASA's Kennedy Spa... (AP photo)

TAIPEI (Taiwan News) — Taiwanese manufacturing partners that supply Elon Musk’s Space X could take a huge hit if the company goes bankrupt, a possibility Musk himself has warned about.

In an internal letter sent to company employees on Friday (Nov. 27), Musk said the company might face a "real risk of bankruptcy.” This would leave Taiwanese companies Kinpo (金寶), Tong Hsing Electronics (同欣電), TSEC (元晶), Parpro (事欣科), UMT (昇達科), and AcBel Polytech (康舒) in bad shape, according to a UDN report.

Starlink, once Space X’s flagship project, had initially given a boost to Taiwan’s low-orbit satellite and aerospace industries. Yet a potential bankruptcy could bring the sector’s growth prospects crashing down.

According to industry sources cited by UDN, the company is facing a crisis over the production of its next-generation Raptor engine, which is set to power the massive, fully-reusable Starship vehicle.

If Space X cannot launch a Starship every two weeks in 2022, it may go under.

Kinpo, which acts as the main supplier for Space X’s low-orbit satellite ground base stations, and Parpro, which supplies printed circuit boards, will both take a real hit.

Solar cell supplier TSEC, which has benefited greatly from the project as each low-orbit satellite needs more than 8,600 solar cells to function, will be left hanging. The same goes for AcBel Polytech, which has begun shipping Space X’s orders for power supply units and satellite receivers.