STMicroelectronics to Double SpaceX Chip Supply as Shipments Surpass $5 Billion
In Focus
- SpaceX uses STMicro’s radio-frequency antenna chips on Starlink satellites
- Demand for STMicro’s specialized chips could grow as commercial space projects increase
- STMicro missed Q3 revenue estimates, reporting $3.19 billion against the expected $3.34 billion
Europe’s largest semiconductor contract manufacturing and design company, STMicroelectronics shipped over 5 billion chips to SpaceX over the last ten years. According to Yahoo Finance, the Elon Musk-led space technology firm uses STMicro’s radio-frequency antenna chips on its Starlink satellite network.
SpaceX Drives STMicro’s Chip Business
STMicro manufactures specialized chips that can withstand the demands of space. These chips now support Starlink’s user terminals in over 150 markets. The European chipmaker revealed the scale of its growing space contract with SpaceX a decade after its CEO Jean-Marc Chery met with Musk.
Today, STMicro semiconductor shipments to SpaceX have become a major driver for the company’s specialized chip production business. According to a senior executive at the European chipmaker, this number will likely double over the next two years.
“The past 10 years of user terminals in terms of volume could actually double over the next two years. I expect many lower-orbit satellite players to leverage the technology,” President of the Microcontrollers and Digital Integrated Circuit Division at STMicro, Remi El-Ouazzane said as per Yahoo Finance.
News of STMicro’s chip shipments to SpaceX come days after the space technology firm announced plans to list publicly in 2027. As the company plans to raise over $25 billion from the public, analysts predict that the SpaceX IPO might be record-breaking.
Commercial Space Projects Increase STMicro Chip Demand
The chip manufacturer did not share specific targets. However, STMicro’s 5 billion chips milestone points to rapid expansion in the commercial satellite market, where private satellites are quietly enhancing internet access in remote regions. Besides the radio-frequency antenna chips, the European chipmaker is expected to supply inter-satellite laser links to SpaceX.
In Europe, demand for STMicro chips is expected to grow as the company works with companies such as Eutelsat and Thales on satellite projects like the Iris 2 constellation. These projects are expected to increase demand for specialized chips capable of handling high volumes of data in the harsh space conditions.
The space industry has been shifting from government-led to commercial-led projects.
Currently, commercial projects include companies such as Eutelsat’s OneWeb, SpaceX’s Starlink, and Amazon’s Project Kuiper. Recently, Project Kuiper rebranded to Amazon Leo satellite network with a strong focus on enterprise connectivity.
STMicro’s Fluctuating Revenue Performance
For over a year now, STMicro’s revenue performance has been fluctuating, sending mixed signals to investors. In November 2024, its stock slumped after the company reviewed its growth target downwards.
STMicro’s Q1 2025 targets met investor expectations after the company reported $2.52 billion in revenue, against the forecasted $2.51 billion. However, the company missed its Q3 market estimates after it reported $3.19 billion in net revenues, against analyst expectations of $3.34 billion.
