The chipmaker expects strong growth from satellite constellations, with rising demand for semiconductors powering broadband networks and space infrastructure, as global deployments expand and new applications such as direct-to-device connectivity gain momentum.
STMicroelectronics is strengthening its push into the space semiconductor segment, forecasting cumulative revenues exceeding $3 billion from its space-related business between 2026 and 2028. The growth outlook is largely driven by surging demand for chips used in low-Earth orbit (LEO) satellite constellations, a rapidly expanding segment of the global space economy.
The company’s projections come amid increasing deployment of satellite networks aimed at delivering broadband connectivity and enabling new communication services. Market response to the announcement was positive, with the company’s stock registering gains during trading. STMicroelectronics also highlighted significant growth in its LEO-related revenues, which have expanded multiple times over the past few years and are expected to approach the $1 billion mark in the near term.
Satellite expansion fuels semiconductor demand
The accelerating rollout of LEO constellations by players such as SpaceX’s Starlink, AST SpaceMobile, and Amazon’s Project Kuiper is reshaping the satellite communications landscape. What was once a niche technology is evolving into a large-scale platform supporting global broadband access, direct-to-device connectivity, and emerging space-based infrastructure.
A senior executive at STMicroelectronics noted that the sector remains in its early stages, with significant headroom for expansion as adoption increases worldwide. The company’s longstanding relationship with Starlink, spanning both satellite components and user terminals, has helped it secure a dominant position in the market. It currently commands a substantial share in key segments, even as competition begins to intensify.
Regulatory limits and future opportunities
While the company sees strong potential in global markets, regulatory restrictions continue to shape its participation in certain regions. China, for instance, represents a sizable opportunity in ground-based user terminals. However, export controls limit involvement in satellite hardware manufacturing within the country, highlighting the complexities of operating across geopolitically sensitive markets.
Looking ahead, STMicroelectronics is also monitoring the emergence of orbital data centres as a potential growth avenue. Although revenues from this segment have not yet been factored into current projections, the company believes that initial deployments could begin to take shape within the next few years.
As satellite networks scale and new use cases emerge, the company is positioning itself to capitalise on a long-term shift toward space-driven connectivity and computing, reinforcing its role in the evolving global semiconductor landscape.
