Introduction#
STMicroelectronics, a major European chipmaker, has announced its goal to generate over $3 billion in revenue from its semiconductor space business between 2026 and 2028. This ambitious target is fueled by the increasing demand for chips used in low-Earth orbit (LEO) satellite networks.
Revenue Growth#
The company reported that its revenue from LEO applications reached approximately $600 million in 2025, a significant increase from around $175 million in 2021. STMicroelectronics anticipates this figure will approach $1 billion in 2026. Executive Remi El-Ouazzane emphasized that the company is still in the early stages of this expanding market.
Market Expansion#
Several companies, including Starlink, AST SpaceMobile, and Amazon, are working to broaden the use of low-Earth orbit satellites. These efforts aim to transform satellite communications from a niche service into mainstream broadband and direct-to-cell services, as well as potential orbital data centers.
Competitive Advantage#
STMicroelectronics has a long-standing supply partnership with Starlink, which it believes will provide a competitive edge in maintaining its nearly 90% market share as the market grows and new competitors enter. However, the company noted that while China presents a significant opportunity for user terminals, it will not be able to participate in satellite technology there due to export controls. El-Ouazzane stated, "We are unapologetically European," highlighting the company's compatibility with both U.S. and Chinese markets, albeit limited to user terminals.
Future Opportunities#
While STMicroelectronics sees potential in orbital data centers, it has not factored any revenue from this area into its 2026-2028 projections. As the market for space technology evolves, the company remains focused on leveraging its existing partnerships and market position.