Goldman Sachs launches the Asia Space Economy Basket GSSZSPCE, highlighting differentiated exposure of the Asian supply chain in the space economy deployment cycle

Overview

This Goldman Sachs Asia-Pacific portfolio strategy report, themed “Built for Orbit,” argues that the space economy is moving from concept and early-stage capital investment into a more active deployment phase, and introduces the GS Asia Space Economy Basket (GSSZSPCE). The report's focus is not on single-company recommendations, but on identifying investment exposure in Asian markets across satellites, launch systems, propulsion, ground electronics, RF components, EO data, and LEO connectivity through the lenses of region, value chain, and thematic fund flows.

Core views

The core views include: first, the Asian supply chain provides global space-economy exposure in manufacturing, electronics, components, and downstream applications that differs from the US and Europe; second, North Asia leads in industrial depth and scale, with China having full-stack capabilities, Japan focusing on upstream launch, propulsion, and in-orbit sustainability, South Korea accelerating in launch systems and satellite manufacturing, and Taiwan leveraging its semiconductor and electronics capabilities to enter RF/GNSS and LEO hardware; third, India and ASEAN / Singapore are more reflected in mid-to-downstream manufacturing, EO data demand, LEO connectivity, and regional headquarters functions; fourth, inflows into space-themed funds are strong but the Asian supply chain remains underallocated, and GSSZSPCE aims to provide thematic exposure balancing both direct and supply-chain exposure.

Analysis framework

The report uses a thematic basket and value-chain mapping approach, comparing markets by space-economy exposure, value-chain layer, specific products and services, government anchors, and policy goals, while also assessing the investability of the theme through fund flows, basket market composition, business-category exposure, sub-sector index performance, earnings momentum, and relative valuation.

Methodology notes

• thematic strategyspace economy value chain layering

  upstream, midstream, downstream, and full-stack exposure

  The report differentiates markets by value-chain position, including launch, propulsion, satellite platforms, ground electronics, data services, and connectivity applications, to identify the industrial roles of different countries and regions.

• regional comparisongovernment anchor and industrial capability mapping

  policy funding, national goals, and supply-chain capabilities

  The report combines government programs, industry funds, national space goals, and local supply-chain capabilities to assess the depth and sustainability of space-economy exposure across regions.

• portfolio constructionGS Asia Space Economy Basket(GSSZSPCE)

  balanced emphasis on direct exposure and supply-chain exposure

  GSSZSPCE is used to express the Asian space economy theme, including both companies directly involved in aerospace and satellite businesses and supply-chain companies that provide critical components, electronics, and manufacturing capabilities for the space economy.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• GS Asia Space Economy Basket(GSSZSPCE)

  Used to express direct and supply-chain exposure to the Asian space economy.

  Strengths

  Covers multiple segments including launch, satellites, ground electronics, RF/GNSS, EO data, and LEO connectivity; the report says related stocks have outperformed since 2025 and that earnings momentum is supported.

  Weaknesses

  The thematic basket may be affected by industry cycles, the pace of policy implementation, and valuation volatility, and is not equivalent to single-company fundamental research.

  Comparison

  The report believes the Asian supply chain remains underrepresented relative to the global space economy theme, while valuations are attractive relative to global peers.

  Risks

  A reversal in thematic fund flows, slower-than-expected commercialization, delays in government projects, geopolitics, and export controls could all weaken performance.

• China space supply chain

  Full-stack upstream-to-downstream space-economy exposure.

  Strengths

  Has a relatively complete supply chain including satellite platforms, payloads, rocket engines, commercial spaceports, RF, and EO data platforms.

  Weaknesses

  Highly dependent on national strategy, industrial policy, and the implementation pace of commercial aerospace.

  Comparison

  Within the report framework, China, like Japan and South Korea, is a high-exposure market, but China's coverage is more full-stack.

  Risks

  Uncertainty around policy execution, cost reduction, launch safety, international restrictions, and returns on capital investment.

• Japan space supply chain

  Mainly provides upstream exposure in launch, propulsion, satellite platforms, and in-orbit sustainability.

  Strengths

  Backed by the JPY1tn Space Strategy Fund driven by JAXA, and has capabilities in high-reliability propulsion, satellite power systems, and in-orbit services.

  Weaknesses

  The pace of commercialization and capacity expansion still needs to be validated.

  Comparison

  Compared with China's full-stack model, Japan is more focused on upstream and high-reliability technology segments.

  Risks

  Launch cadence, cost targets, execution of government funds, and international competitive pressure.

• South Korea space supply chain

  Primarily maps to launch systems, satellite manufacturing, and precision manufacturing.

  Strengths

  The establishment of KASA, private space funds, and SAR constellation projects provide policy and order support, while the chaebol-led integrated infrastructure model is conducive to scaling.

  Weaknesses

  Some key projects remain in the evaluation and design stage.

  Comparison

  Among high-exposure markets, South Korea is more focused on midstream manufacturing, launch systems, and mass satellite production.

  Risks

  Uncertainty around KSLV-III design progress, SAR contract execution, export orders, and funding support.

• Taiwan electronics and semiconductor space exposure

  Participates in the space economy through RF/GNSS, ground electronics, PCB, connectors, packaging, and radiation-hardened chips.

  Strengths

  Its semiconductor and precision electronics supply chain provides a foundation for LEO hardware and satellite subsystems.

  Weaknesses

  Direct aerospace system exposure is weaker than that of China, Japan, and South Korea.

  Comparison

  More akin to leverage on the electronics and semiconductor supply chain within the space economy, rather than a complete aerospace platform.

  Risks

  Semiconductor cycles, customer concentration, technology certification cycles, and geopolitical risk.

• India space ecosystem

  Mid-to-downstream exposure covering launch, satellite manufacturing, NaviC/IRNSS, EO analytics, and component manufacturing.

  Strengths

  IN-SPACe, the PPP framework, FDI liberalization, and 300+ startups support ecosystem expansion.

  Weaknesses

  The current industry scale is still relatively small, and commercialization and manufacturing scale-up are still ramping.

  Comparison

  Compared with the high-exposure markets of North Asia, India is more in a growth and liberalization stage.

  Risks

  Financing, regulatory execution, infrastructure expansion, order conversion, and international competition risk.

• ASEAN / Singapore downstream space demand

  More reflected in EO data demand, LEO connectivity, regional headquarters, and financial services functions.

  Strengths

  Singapore has the role of a regional headquarters and financial center, while ASEAN has EO demand in agriculture, maritime, oil and gas, utilities, and climate scenarios.

  Weaknesses

  Manufacturing and upstream aerospace capabilities are relatively limited, with lower direct space-economy exposure.

  Comparison

  Compared with North Asia, it is more focused on downstream applications and demand-side exposure rather than launch or satellite manufacturing.

  Risks

  Downstream willingness to pay, infrastructure deployment, cross-border regulation, and the pace of data commercialization.

Key data

• Report themeBuilt for Orbit: Introducing Asia Space Economy Basket(GSSZSPCE)The report proposes an Asia space economy basket to capture both direct and supply-chain exposure.
• China exposureHigh；Full-Stack: Upstream To DownstreamCovers satellite platforms, payloads, subsystems, liquid and solid rocket engines, commercial spaceport clusters, RF and ground electronics, EO data platforms, etc.; the table mentions that the commercial spaceport cluster includes 700+ companies, with reusable launch targets below 20,000 yuan/kg.
• Japan exposureHigh；Upstream: Launch, Propulsion, Satellite Bus, In-Orbit SustainabilityGovernment anchors include the JPY1tn Space Strategy Fund, led by JAXA over a 10-year period, with goals including low-cost launch, domestic supply chains, GEO refueling, and microsatellite constellations.
• South Korea exposureHigh；Midstream: Launch Systems, Satellite ManufacturingKASA was established in 2024; the table mentions a KRW200bn private space fund, a KRW1.2tn SAR constellation contract under evaluation, and a goal of becoming one of the world's top seven space powers by 2045.
• Taiwan exposureModerate–High；Midstream: Ground Electronics, RF/GNSS Subsystems, LEO H/WLeveraging RF front-end, phased-array antennas, GNSS chips, PCB, precision electronics, satellite subsystems, and semiconductor packaging; policies include the NT$27bn 6G/satellite alliance and an NT$1tn production target by 2029–30.
• India exposureModerate；Mid-To-Downstream: Launch, Manufacturing, EO DataThe table mentions 300+ startups under IN-SPACe, full FDI liberalization, and a target for the industry to reach US$44bn by 2033, versus about US$8.4bn currently.
• ASEAN / Singapore exposureLow–Moderate；Downstream: EO Data Demand, LEO ConnectivitySingapore serves as a regional headquarters and financial center, with about 70 companies and about 2,000 professionals; potential LEO broadband revenue exceeds US$40bn, and EO could contribute about US$100bn to ASEAN GDP by 2030.

Impact & implications

The investment implication is that the space economy theme is shifting from long-dated imagination to actual order and capex cycles in satellite deployment, launch frequency, ground equipment, electronic components, and downstream data applications. Compared with investing only in global leading aerospace or satellite companies, the Asian supply chain may offer more diversified thematic exposure with stronger manufacturing and component characteristics; however, the report also makes clear that this is cross-market thematic research rather than an independent recommendation on any single security.

Risks

• The commercialization progress of the space economy may fall short of expectations, leading to insufficient support for orders, earnings, and valuations.
• Key assumptions such as declining launch costs, satellite mass production, LEO connectivity, and EO data monetization carry execution risk.
• If government funding, industrial policy, or national space programs are delayed, supply-chain revenue realization may be affected.
• Geopolitics, export controls, technology restrictions, and cross-border regulation may alter the addressable market for supply chains.
• Thematic fund flows may reverse, amplifying valuation volatility in related stocks.
• The report is thematic strategy research and does not constitute an independent investment recommendation for any single stock.

What to watch

• Changes in the market composition, business-category exposure, and sub-sector performance of the GS Asia Space Economy Basket(GSSZSPCE).
• Whether AUM and fund flows into space-themed funds since 2025 continue.
• Changes in the annual number of objects placed into orbit in Asian markets, the frequency of commercial launches, and unit launch costs.
• Progress in execution of the CNSA Commercial Space Action Plan 2025–27, the JAXA Space Strategy Fund, KASA plans, IN-SPACe policies, the Taiwan 6G/satellite alliance, and Singapore NSAS.
• The Oct 2026 milestone for South Korea's KRW1.2tn SAR constellation contract.
• Earnings revisions, order visibility, and valuations relative to global peers for Asia space-economy-related stocks.