Sharp partners SES on MEO satellites, expanding Foxconn's NTN ambitions

Sharp has announced a partnership with SES, a satellite operator, to utilize SES's O3b medium Earth orbit (MEO) satellites. This collaboration marks Sharp's entry into the non-terrestrial networks (NTN) sector, specifically focusing on satellite communication technologies and services. The move aligns with Sharp's strategy to diversify its business operations.

This partnership matters because it represents Sharp's strategic expansion beyond its traditional electronics manufacturing base. By entering the NTN space, Sharp aims to tap into new markets for connectivity services and integrated solutions. This diversification could create new revenue streams and enhance Sharp's competitive position in the broader technology landscape.

The mechanism involves Sharp leveraging SES's MEO satellite constellation, O3b, which provides high-throughput, low-latency satellite connectivity. Sharp will likely integrate this satellite communication capability into its future products and services, potentially offering end-to-end solutions that incorporate satellite-based connectivity for various applications, from consumer devices to enterprise solutions.

This development primarily moves Sharp (6753.T) as it signals a new strategic direction and potential for growth in a non-traditional area. It also impacts its parent company, Foxconn (2317.TW), by supporting its broader ambitions in NTN and diversification beyond core manufacturing. SES (SESG.PA) also benefits from a new partnership and expanded use of its satellite network.