Home / Business and Economy / STMicro Eyes $3B+ Space Chip Revenue
STMicro Eyes $3B+ Space Chip Revenue
4 May
Summary
- STMicro targets over $3 billion in space chip revenue from 2026-2028.
- Company revenue from low-Earth orbit satellites is projected to hit $1 billion in 2026.
- STMicro faces export controls limiting satellite tech in China.
STMicroelectronics has set an ambitious target of generating well over $3 billion in cumulative revenue from its semiconductor space business between 2026 and 2028. This forecast is bolstered by a significant surge in demand for specialized chips essential for low-Earth orbit satellite networks. The company's revenue from this burgeoning sector is anticipated to approach $1 billion in 2026, a notable increase from approximately $175 million in 2021.
Company executives describe the current market as being in its "early innings," with major players like Starlink, AST SpaceMobile, and Amazon Leo expanding satellite communications towards mass-market broadband and direct-to-cell services. STMicroelectronics aims to leverage its decade-long partnership with Starlink to preserve its near 90% market share as competition intensifies.
Despite identifying China as a key market for user terminals, STMicroelectronics stated that export controls will prevent it from engaging in satellite technology development within China. The company emphasized its European identity and compatibility with U.S. and Chinese standards for user terminals, but not for satellite technology in China.
Looking ahead, STMicroelectronics also sees potential in the future market of orbital data centers. While not currently included in its 2026-2028 revenue targets, executives estimate that a relevant volume of orbital data centers could emerge in the sky within approximately three years.
