STMicro targets more than $3 billion in space chip revenue as demand grows

STMicroelectronics is targeting over $3B in cumulative revenue (2026–2028) from its space semiconductor business, driven by rapid growth in low-Earth orbit (LEO) satellite networks. Its LEO-related revenue has already risen from about $175M (2021) to ~$600M (2025) and is expected to approach $1B in 2026. The growth is fueled by demand from major LEO and space connectivity players like SpaceX (Starlink), Amazon (Project Kuiper / Amazon Leo), and AST SpaceMobile, which are moving satellite services from niche use toward mass broadband, direct-to-cell connectivity, and potentially orbital data centers. STMicro expects to maintain strong market share (~90% in its segment), supported by long-term supply deals, especially with Starlink. However, it will be restricted from China satellite tech markets due to export controls, though it can still serve Chinese user terminals. Impact on U.S. manufacturers: Demand: Slight increase from expanding LEO satellite programs Competition: Low impact, STMicro mainly serves niche space-grade chips Supply chain: Mild positive effect through broader global sourcing needs Strategic risk: Minimal, no major displacement of U.S. suppliers Growth effect: Supports overall satellite ecosystem expansion, indirectly benefiting U.S. manufacturers