The iPhone manufacturer is reaching for the stars as two prototype satellites, manufactured by Foxconn, were recently launched into low Earth orbit aboard a SpaceX rocket.
Launching low Earth orbit satellites marks a significant milestone for the Taiwanese electronics manufacturer as it diversifies its operations into new sectors, this shift is crucial amid challenges faced by some of its existing businesses, such as smartphones and laptops.
Foxconn aims to showcase its satellite technology, capitalizing on the growing demand for space-based communications.
SpaceX, a key player in the satellite launch industry, has already deployed over 5000 low Earth orbit satellites for its Starlink constellation.
Foxconn, however, is betting on its ability to manufacture satellites for a range of customers, including corporations and governments.
The satellites, each the size of a backpack and weighing around 9 kg, carry cameras, communication devices, and other equipment.
Foxconn designed these satellites to orbit the Earth every 96 minutes at an altitude of 520 km, developed in collaboration with Taiwan’s National Central University.
Young Liu, Chairman of Foxconn, has been exploring new ways to diversify the company’s income since taking office in 2019.
This diversification focuses on electric cars, digital health, robotics, as well as artificial intelligence and semiconductor technologies, in an interview with Bloomberg, Liu stated, “I needed to find something for the company to grow over the next ten or fifteen years.” The company’s revenues are expected to decrease by around 6% to NT$6.2 trillion ($192 billion USD) this year.
Ranked third globally among major private employers, after Walmart and Amazon, Foxconn plays a crucial role in Apple’s supply chain, producing approximately two out of every three iPhones globally.
Apple, needing millions of iPhones every three months and frequently updating models, relies heavily on Foxconn.
However, the demand for low Earth orbit satellites has a longer lead time for customer orders, making it challenging to predict the success of Foxconn’s venture into the satellite industry.
Government orders could provide some security for the Taiwanese company as it builds its satellite-related business.
Taiwan is developing plans to launch its own low Earth orbit communications satellite as part of a strategy to create space alternatives to the undersea cables that currently provide most of the island’s internet communications.
