Foxconn launches two satellites and wants to continue its contract manufacturing model in the space industry

On November 13th, it was reported that two low Earth orbit satellites manufactured by Hon Hai Precision (Foxconn) successfully launched from the Vandenburg Space Force Base in southern California on Saturday aboard a SpaceX rocket.For the world's largest iPhone manufacturer, the launch of a satellite marks an important moment for it to enter new fields and achieve diversification

On November 13th, it was reported that two low Earth orbit satellites manufactured by Hon Hai Precision (Foxconn) successfully launched from the Vandenburg Space Force Base in southern California on Saturday aboard a SpaceX rocket.

For the world's largest iPhone manufacturer, the launch of a satellite marks an important moment for it to enter new fields and achieve diversification. Due to the difficulties faced by its traditional businesses such as smartphones and laptops, this transformation has become even more urgent. Foxconn aims to meet the growing demand for space communication by showcasing its satellite technology.

Elon Musk's SpaceX has manufactured and launched over 5000 low Earth orbit satellites for its star chain project. Foxconn, on the other hand, is betting on being able to manufacture satellites for corporate and government customers.

These two satellites were jointly developed by Foxconn and universities in Taiwan, and are the size of a backpack. Each satellite weighs about 9 kilograms and carries cameras, communication equipment, and other equipment. They are designed to orbit the Earth every 96 minutes at an altitude of 520 kilometers.

New sources of growth

Since taking over from founder Terry Gou in 2019, Foxconn Chairman Liu Yangwei has been searching for diversified development methods, focusing on electric vehicles, digital health, robotics technology, as well as artificial intelligence, semiconductors, and communication satellite technology.

I need to find something to continue the company's growth in the next 10 to 15 years, "Liu Yangwei said in an interview

Foxconn is the world's third largest private employer, after Wal Mart Inc. and Amazon. com Inc. It is estimated that Foxconn's revenue is expected to decline by about 6% this year, to NT $6.2 trillion (approximately 192 billion US dollars).

Targeting government orders

Tim Farrar, President of Telecom, Media and Finance Associates Inc., a telecommunications, media, and financial consulting firm, said that unlike Apple, which requires millions of iPhones every quarter and frequently updates models, the time interval between customers ordering low Earth orbit satellites may be long, making this business more difficult to predict.

Foxconn is about two-thirds of the global iPhone manufacturers. For outsourcing manufacturers like Foxconn, unless you can find another business at the right time, your life may be very difficult, "Farler added

Farler believes that government orders can provide Foxconn with some sense of security as they will support its satellite business.

Foxconn is considering that if the authorities give us a certain number of orders every year, then there will be no problem, "Farler said

Another business that supports Foxconn is its electric vehicle business, as these vehicles require real-time communication technology. Jason Wang, an analyst at Foxconn at MasterLink Securities Corp. in Taipei, said, "You need to provide a solution for your car. If they want to launch this business, at least they need to establish an infrastructure in Taiwan to demonstrate this technology

Foxconn's background in electronic product manufacturing and the professional knowledge gained through manufacturing smartphones, game consoles, and other devices should be helpful in this regard.

The industry said, "Taiwan is very skilled in manufacturing various commercial electronic products, and these companies can easily shift to the space industry