Foxconn Lifts Off: Chipmaker launches its first LEO satellites on SpaceX rocket as it looks to expand

Foxconn, the world’s largest producer of iPhones, has entered the realm of space exploration as it launched two prototype low-Earth orbit (LEO) satellites aboard a SpaceX rocket from Vandenberg Space Force Base in California. The move is a significant step for the Taiwanese electronics manufacturer as it seeks to diversify its business amid challenges in established sectors such as smartphones and laptops. The LEO satellites, developed in collaboration with Taiwan’s National Central University, are approximately the size of a backpack, weighing 9 kilograms or 20 pounds each. Equipped with cameras, communication devices, and other equipment, they are designed to orbit Earth every 96 minutes at an altitude of 520 kilometres or 323 miles. Foxconn’s foray into satellite technology aims to cater to the growing demand for communications from space, primarily targeting corporate and government clients. While SpaceX’s Starlink constellation has deployed over 5,000 LEO satellites, Foxconn is positioning itself to contribute to the sector’s growth. The satellites’ launch underscores Foxconn’s broader strategy of diversification, initiated by Chairman Young Liu since taking over from founder Terry Gou in 2019. The company has been exploring opportunities in electric vehicles, digital health, robotics, artificial intelligence, semiconductors, and now, communications satellites. In an interview with Bloomberg Businessweek, Chairman Young Liu emphasized the need for Foxconn to identify avenues for sustained growth over the next decade. The move into satellite technology aligns with the company’s vision to stay ahead in emerging industries. Foxconn, currently the world’s third-largest private employer, faces an estimated 6 per cent drop in revenue this year, reaching Taiwanese $6.2 trillion or about US $192 billion. The satellite business introduces a less predictable revenue stream compared to Foxconn’s smartphone manufacturing, where it produces about two-thirds of the world’s iPhones. The Taiwanese government’s potential orders for LEO satellites could provide a level of stability for Foxconn’s satellite venture. Additionally, the company’s involvement in the electric vehicle sector, which relies on real-time communication technology, may offer synergies with its satellite initiatives. As Taiwan plans to launch its first LEO communication satellite, part of a strategy to develop space-based alternatives for internet connections, Foxconn aims to position itself as a key player in the evolving space technology landscape. The company’s expertise in electronics and experience in manufacturing various consumer products are seen as assets that can contribute to the success of its space-related endeavours. (With input from agencies)