STMicroelectronics is scaling its space ambitions as booming low-Earth orbit satellite deployments drive demand for advanced semiconductor solutions.
STMicroelectronics is ramping up its ambitions in the space semiconductor market, projecting cumulative revenue well above $3 billion from its space-related business between 2026 and 2028. The outlook is driven by accelerating demand for chips used in low-Earth orbit (LEO) satellite constellations.
Investor sentiment reacted positively to the announcement, with shares of the Franco-Italian chipmaker climbing as much as 7% during trading before closing about 2.2% higher.
The company highlighted strong momentum in its LEO segment, where revenue has grown sharply—from roughly $175 million in 2021 to around $600 million in 2025. STMicro expects the figure to approach $1 billion in 2026 as satellite broadband networks expand globally.
According to STMicro executive Remi El-Ouazzane, the industry is still at an early stage of development. The rapid deployment of LEO satellite systems by companies such as Starlink, AST SpaceMobile, and Amazon’s Project Kuiper is transforming satellite connectivity from a niche offering into a mass-market platform supporting broadband access, direct-to-device communication, and potentially space-based data infrastructure.
STMicroelectronics believes its long-standing supply relationship with Starlink—covering both satellites and user terminals—positions the company strongly to defend its nearly 90% market share as competition intensifies.
China remains a significant opportunity for ground-based user terminals, though export restrictions prevent the company from participating in satellite hardware development within the country. STMicro emphasized that while it maintains compatibility with both U.S. and Chinese markets, satellite technologies remain constrained by regulatory controls.
Looking further ahead, the company also sees orbital data centres as an emerging opportunity. However, it has not factored any revenue from this segment into its current projections. El-Ouazzane suggested that meaningful deployment of space-based data centres could begin to materialize within the next three years.
