Sharp will begin selling satellite communication terminals and providing line services for domestic corporations starting in 2027. This event symbolizes a fundamental shift in the company’s business model: effectively withdrawing from the LCD business, which had long weighed on its management, and positioning next-generation communication technology as a new pillar of growth.

New Services and Line Infrastructure Through Partnership with SES

On June 30, 2026, Sharp announced that it had reached a basic agreement with SES, one of the world’s largest satellite operators based in Luxembourg, to build a strategic partnership. Based on this partnership, Sharp will begin offering “O3b mPOWER,” a medium orbit (MEO) satellite communication service operated by SES, in Japan starting in 2027. This service uses satellites orbiting at lower altitudes compared to conventional geostationary satellites, enabling high-capacity, low-latency communication, and offering extremely high security and stability.

Sharp not only sells communication equipment but also serves as a solution provider offering SES satellite line services themselves, system construction tailored to customer companies’ needs, and maintenance and operation in a one-stop manner. This enables the construction of high-speed data communication environments even in areas where stable communication was previously difficult, such as mountainous areas or offshore areas where terrestrial cellular networks cannot reach. The following image illustrates Sharp’s vision for utilizing satellite communications.

The technological superiority of the “satellite communication terminal” achieving the world’s smallest level

At the core of this business is Sharp’s self-developed satellite communication user terminal compatible with “5G NTN (Non-Terrestrial Network).” Sharp has incorporated advanced miniaturization and lightweight technologies, as well as communication control know-how cultivated over many years of smartphone development, into this device. As a result, it achieves a significant reduction in size and weight compared to conventional satellite communication antennas, about one-tenth the size.

On the technical side, in March 2025, we succeeded in achieving the world’s first 3GPP-compliant 5G NTN communication connection via LEO (Low Earth Orbit) satellites, and our innovation has been highly recognized externally, including the Minister of Internal Affairs and Communications Award at the CEATEC AWARD 2025. In particular, the company’s unique beam control technology, which accurately tracks rapidly moving non-geostationary satellites, is a major strength. By building on existing 5G technology, costs are also reduced through component standardization, and the company prides itself on being the only company in the world capable of incorporating the standard 5G NTN into antenna development by the time of commercialization in 2027.

Target markets and specific industrial use cases

Sharp is targeting corporate sectors that require robust communication environments independent of ground infrastructure, such as construction, shipbuilding, and defense, as initial targets. Specifically, the following uses are planned:

• Construction industry: Introducing remote control of construction machinery and promoting DX at sites in mountainous areas without adequate communication infrastructure.

• Shipping Industry: Improving crew communication environments during voyages and advancing operational management systems

• Defense & Public Sector: Ensuring communication reliability during disasters and emergencies, and developing anti-tank communication technologies through multi-orbit support

In particular, remote monitoring and autonomous driving at construction sites, as well as real-time video transmission on ships, are areas where the low-latency MEO and LEO satellite communication characteristics are maximized. Sharp has already begun collaborations and demonstration experiments with partner companies such as Furuno Electric, Shimizu Corporation, and ARAV for concrete solution development, and is accelerating the construction of a practical business model that goes beyond mere hardware provision. The diagram below illustrates the future vision of satellite communication being utilized in various fields.

Roadmap for Shifting Management Strategy and Regrowth

Breaking away from the LCD business and implementing structural reforms

The reason Sharp is investing so much in the satellite communications business is the severe slump in its long-standing pillar, the LCD panel business. Once a sensation as the “Sharp of LCDs,” the company’s main production of large LCD panels for TVs at its Sakai Plant (SDP) became a burden due to fierce price competition with Chinese manufacturers and others, resulting in significant losses.

Judging that continuing losses would be difficult, the company decided to halt production at its Sakai plant by September 2024 and completely withdraw from large panel manufacturing. Additionally, we are promoting effective asset utilization, such as selling part of the land and buildings at the Sakai factory to SoftBank and converting them into AI data centers. This decision was a difficult yet inevitable choice to move away from one-legged management overly dependent on specific businesses and boldly shift into new areas with promising growth.

New Growth Pillars Announced at the 2026 Business Briefing

The materials for the “FY2026 Business Briefing” presented under CEO Tetsuharu Kawamura clearly outlined a revitalization strategy centered on AI. Sharp has set a vision to integrate AI into every aspect of “living” and “working,” and has established “AI servers (AI infrastructure)” and “satellite communication (next-generation communication)” as two pillars to support this social foundation.

A key role in this strategy is its collaboration with its parent company, Hon Hai Precision Industries. By combining Hon Hai’s world-class manufacturing and procurement capabilities with Sharp’s brand strength, customer touchpoints, and telecommunications patented technologies, we aim to transform into a comprehensive technology solutions company that goes beyond the traditional framework of a home appliance manufacturer. This strong partnership also supports the acceleration of technology implementation in the development of satellite communication terminals.

A long-term vision aiming for 100 billion yen in sales by 2035

Sharp has set an ambitious goal for its satellite communications business to achieve sales of 100 billion yen by 2035. The roadmap to achieve this goal is broadly divided into three steps.

1. Step 1 (FY2027): Build concrete business schemes with satellite telecommunications operators such as SES and enter the corporate market.

2. Step 2 (Medium-term): Expand solutions for specific industries with high demand, such as shipbuilding, construction, and defense.

3. Step 3 (Future): Fully deploy it in “mobile vehicles” such as drones and automobiles to explode market expansion

In particular, it is predicted that in the future, the installation of ultra-small devices in mobility devices such as drones and automobiles will multiply the market size several times over. Sharp has already begun concrete discussions with major automakers regarding the development of in-vehicle terminals, and achieving the 2035 target is key to developing these mobile markets.

Future Developments and Market Impact

The ‘Big Bang’ of Satellite Communication Brought About by 5G NTN Standardization

Why is 2027 considered the starting year? This is related to a major turning point in the telecommunications industry. Starting in 2027, standardization will begin to extend the “5G standard” to satellite communications, which have previously been operated by each company’s own standards. As a result, it is predicted that similar phenomena will occur in the satellite communication market, similar to the explosive spread of the mobile phone market through standardization.

Sharp holds the overwhelming advantage of being the top Japanese company in the number of mandatory 5G standard patents, and this trend toward standardization is a major tailwind for the company. If satellite communication and terrestrial cellular networks use the same method, users can seamlessly switch between the two without consciously realizing it. Looking ahead to the arrival of this “5G NTN” era, Sharp aims to gain first-mover advantage by quickly launching versatile standard-compliant devices to the market. The following roadmap outlines the company’s future business development.

Future Highlights: Global Expansion and Mobility Collaboration

The next key focus in Sharp’s satellite communications business is the overseas sales of its advanced antenna technology and its practical application in the mobility sector. The company plans not only to provide services within Japan but also to sell highly competitive hardware such as flat-panel antennas worldwide.

Additionally, by combining related technologies such as drones, automobiles, and even space-use solar cells, we aim to build a vertically integrated infrastructure platform that connects space to the ground and even on-site AI servers. Whether Sharp can overcome management crises and discover new “Only One” technology to replace the traditional “LCD” in next-generation communications, Sharp’s challenge for renewed growth will accelerate toward commercialization in 2027.

Reference Page

• [Sharp News Release: Joint Success with Eutelsat S.A., MediaTek, Airbus, and ITRI in the World’s First NTN Communication Connection Using 5G Technology https://corporate.jp.sharp/news/250303-b.html

• [Sharp for Corporate Customers: Satellite Communication User Terminals]https://jp.sharp/business/lp/satellite_ut/

• [SHARP: FY2026 Business Briefing Materials] https://corporate.jp.sharp/ir/library/financial/pdf/2026/06/260609.pdf

• [SES:O3b mPOWER Product Overview (English)] https://www.ses.com/network-and-technology/meo/o3b-mpower

[#シャープ #衛星通信 #5G_NTN #ビジネス #経営戦略 #宇宙ビジネス #DX #次世代通信]