A major European semiconductor manufacturer is projecting massive growth in its space technology division, anticipating more than $3 billion in combined revenue over the next three years as satellite internet services explode in popularity.
STMicroelectronics announced Monday that it expects cumulative earnings from its space chip business to exceed $3 billion between 2026 and 2028, fueled by booming demand for semiconductors powering low-Earth orbit satellite systems.
The Franco-Italian company’s stock price surged as much as 7% following the announcement before closing 2.2% higher at 1536 GMT.
The semiconductor giant revealed dramatic growth figures, with space-related revenue climbing from approximately $175 million in 2021 to roughly $600 million in 2025, and projections showing nearly $1 billion by 2026.
“We are just in the early innings of this market,” STMicro executive Remi El-Ouazzane explained during an analyst conference call.
Major companies including Starlink, AST SpaceMobile, and Amazon Leo are transforming low-Earth orbit satellite communications from specialized applications into mainstream broadband internet and direct-to-cell phone services, with potential expansion into space-based data centers.
STMicroelectronics believes its decade-long supply partnership with Starlink for both satellites and user equipment positions the company to maintain its commanding market position, holding nearly 90% market share even as competition intensifies in the rapidly expanding sector.
The European chipmaker identified China as a significant opportunity for user terminal sales but acknowledged export restrictions prevent satellite technology business in that market.
“We are unapologetically European. So we end up being actually U.S. and China compatible,” El-Ouazzane stated.
“The China compatibility, though, starts and finishes at user terminal. Because of export control, we cannot have any satellite technology happening in China,” he elaborated.
While the company recognizes orbital data centers as a potential future revenue stream, it has not incorporated any related income projections into its current three-year financial targets.
“My wild guess as to when we could start to see, a relevant amount of orbital data centres in the sky, I would say three years from now would be maybe an interesting guess,” El-Ouazzane told reporters.
