STMicroelectronics Bets Big on Satellite Boom: $3 Billion Revenue Target from LEO Chips

<h2>Breaking: STMicroelectronics Projects $3 Billion in Satellite Chip Revenue</h2> <p>STMicroelectronics (STM) announced it expects cumulative revenue of more than $3 billion from its low-Earth-orbit (LEO) satellite business between 2026 and 2028. The Geneva-based chipmaker has already shipped over 5 billion RF antenna chips to Starlink, SpaceX's satellite internet constellation.</p><figure style="margin:20px 0"><img src="https://media.thenextweb.com/2026/05/STMicroelectronics.avif" alt="STMicroelectronics Bets Big on Satellite Boom: $3 Billion Revenue Target from LEO Chips" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: thenextweb.com</figcaption></figure> <p>"Our decades of space-grade chip manufacturing have positioned us at the center of the LEO communications boom," said Jean-Marc Chery, STM's CEO, in a statement Wednesday. "The demand for reliable, radiation-hardened semiconductors from satellite operators is unprecedented." The company's LEO revenue target represents a significant portion of its overall wireless infrastructure business.</p> <h2>Background</h2> <p>STMicroelectronics first qualified its chips for the European Space Agency (ESA) in 1977, building a legacy in space electronics. The company's RF antenna chips are critical components in satellite user terminals, handling high-frequency signal transmission and reception.</p> <p>The LEO satellite market has exploded in recent years, driven by Starlink's massive constellation—over 7,000 satellites launched as of early 2025. Competitors like Amazon's Project Kuiper and China's Qianfan are also deploying LEO networks, further boosting demand for supplier chips.</p> <p>Industry analysts note STM's early partnership with Starlink gave it a first-mover advantage. "STMicroelectronics locked in a dominant position by scaling production early," said Mark Liu, a semiconductor analyst at TechInsights. "Any operator launching LEO terminals will likely need similar components."</p><figure style="margin:20px 0"><img src="https://media.thenextweb.com/2026/01/2025-30sub30-Cristian-Dina.avif" alt="STMicroelectronics Bets Big on Satellite Boom: $3 Billion Revenue Target from LEO Chips" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: thenextweb.com</figcaption></figure> <h2>What This Means</h2> <p>For STMicroelectronics, the $3 billion LEO target solidifies its role as a key enabler of satellite broadband. The company expects cumulative sales from 2026-2028 to exceed total space chip revenue from the previous decade combined. Orbital data centers—where computation is performed in space—are a longer-term opportunity STM is exploring.</p> <p>"We see potential for chips that can withstand the harsh space environment for years," Chery added. "Orbital processing nodes could represent our next growth wave." However, the company emphasized that near-term focus remains on LEO communication terminals.</p> <p>The announcement comes amid broader semiconductor supply chain concerns. STM's ability to meet Starlink's scale has been a key differentiator. "If you can produce billions of chips for one constellation, you can serve the whole industry," said Liu. "That reliability is what operators value most."</p> <p>Investors responded positively, with STM shares rising 2.3% in European trading. The company will provide detailed LEO revenue guidance in its next quarterly report in April 2025.</p>