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Foxconn Enters Satellite Terminal Market, Challenges Industry Giants

Key suppliers set to deliver products below US$10,000, expanding market reach beyond premium segment
Taiwan
f 2317.TW Blue Chip 150 OM 60 Tech 350
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Hon Hai Precision Industry has developed Taiwan’s first low-Earth orbit (LEO) satellite user terminal system, positioning itself to enter Eutelsat OneWeb’s supply chain. The company aims to begin mass production in the first quarter of 2025, marking Taiwan’s shift from a component supplier to a key systems provider in the satellite industry.

The development challenges the dominance of established players like Kymeta, backed by Microsoft co-founder Bill Gates. Current LEO satellite user terminals, primarily supplied by industry incumbents, cost more than US$10,000 each, limiting their use to aviation and maritime sectors.

Foxconn’s senior director of the chairman’s office, Zhao Yuanhan, confirmed the production timeline while noting potential expansion into the Japanese market through collaborations with Sharp. The company is actively engaging with Japanese marine equipment manufacturers and automakers.

Industry experts suggest Taiwanese manufacturers’ entry could drive terminal prices below US$10,000, potentially accelerating Eutelsat OneWeb’s market penetration. The move aligns with Chunghwa Telecom’s broader collaboration with Eutelsat OneWeb, including plans to establish a testing center in Taiwan by 2025.

The announcement came during the 2024 Taiwan Space International Conference and Taiwan Space Industry Exhibition in Kaohsiung, where another local manufacturer, Yageo, revealed similar plans to produce LEO satellite terminals with Compal Electronics by June 2025.

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