STMicroelectronics has set a new revenue target of more than $3 billion for its semiconductor space business over the 2026‑2028 period, underscoring a strategic push into the low‑Earth‑orbit satellite market.
The target follows a rapid rise in LEO revenue, which climbed from about $175 million in 2021 to roughly $600 million in 2025 and is projected to approach $1 billion in 2026, reflecting the explosive demand for satellite‑grade chips.
The company’s focus on silicon photonics and power‑management solutions positions it to serve both hyperscale data‑center and satellite customers, while its long‑standing partnership with Starlink and a near‑90 % share of the LEO market give it a strong competitive foothold.
Executive Remi El‑Ouazzane said, 'We are just in the early innings of this market.' He also noted that export controls limit the company’s ability to supply satellite technology to China, stating, 'We are unapologetically European. So we end up being actually U.S. and China compatible. The China compatibility, though, starts and finishes at user terminal. Because of export control, we cannot have any satellite technology happening in China.'
The announcement was met with a positive market reaction, driven by the ambitious revenue target, the company’s dominant LEO position, and the broader shift toward satellite‑based services.
Beyond the space sector, STMicroelectronics is investing heavily in silicon photonics for AI data centers, planning to quadruple production of its PIC100 platform by 2027. The move into space and AI infrastructure represents a high‑margin growth engine that diversifies the company’s revenue mix amid a slowdown in its automotive and industrial segments.
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