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How a European Chipmaker Powers Every Starlink Terminal in SpaceX's Growing Constellation

MarketDash Editorial Team
6 hours ago
STMicroelectronics has shipped over 5 billion chips to SpaceX over the past decade, powering the Starlink network that now serves 8 million users across 150 countries with more than 20,000 new terminals produced daily.

STMicroelectronics N.V. (STM) doesn't get the headlines that SpaceX does, but the European semiconductor company has quietly become essential infrastructure for Starlink's global expansion. After a decade of collaboration, the partnership has reached a remarkable scale: more than 5 billion RF antenna chips shipped, over 10,000 satellites powered, and 8 million users connected worldwide.

That's the kind of volume that matters in the chip business. STMicroelectronics now delivers more than 5 million chips to SpaceX every single day, supporting a production line that cranks out over 20,000 Starlink user terminals daily and ships them to more than 150 countries.

Engineering at Scale

What makes this partnership interesting isn't just the numbers. It's how deeply integrated the two companies have become. This isn't a typical supplier relationship where one company orders off-the-shelf components. STMicroelectronics and SpaceX co-design custom chips from concept through high-volume manufacturing, with engineering teams in France and Italy working directly on Starlink products.

The user terminal itself represents a fascinating piece of engineering: the first consumer phased-array antenna designed for self-installation. These terminals connect directly to thousands of satellites orbiting in low Earth orbit, and they need to work reliably while being cheap enough to mass produce. That's where STMicroelectronics comes in, providing not just the RF antenna chips but also STM32 microcontrollers, secure elements, and GNSS modules.

Remi El-Ouazzane, president of the company's Microcontrollers, Digital ICs, and RF Products Group, emphasized the scope of collaboration, noting it spans from initial concept development through high-volume manufacturing and includes space-grade technologies for the satellites themselves.

The manufacturing footprint tells its own story: chip fabrication happens in France, with packaging and testing in Malaysia and Malta. The collaboration leans heavily on BiCMOS technology and panel-level packaging to hit the volume, quality, and cost targets necessary for a project of this scale.

The Commercial Space Opportunity

Starlink's latest V3 satellites now deliver over one terabit per second of fronthaul throughput, reflecting the intense performance demands of modern low Earth orbit constellations. And Starlink isn't alone in this space. Amazon.com Inc. (AMZN) is building out its Project Kuiper constellation, while OneWeb and Eutelsat are expanding their own networks.

All of this activity is driving demand for specialized chips that can handle high data rates while surviving the harsh environment of space. STMicroelectronics is positioning itself right in the middle of this shift, with plans to supply inter-satellite laser links for SpaceX and partnerships with European programs including the EU's Iris 2 satellite constellation.

According to a Reuters report on Monday, STMicroelectronics has already shipped more than 5 billion RF antenna chips to SpaceX, and the company expects that figure could double within two years as deployment accelerates.

Business Reality Check

Despite the impressive partnership, STMicroelectronics (STM) shares are up just over 4% year-to-date, reflecting broader challenges in the semiconductor market. On November 12, CEO Jean-Marc Chery offered guidance suggesting 2026 would begin at normal demand levels, pushing back against concerns about excess inventory following a slower-than-expected recovery in 2025.

The near-term outlook includes a sequential decline of 10% to 11% in first-quarter revenue from projected fourth-quarter revenue of $3.28 billion. However, that still represents roughly 20% year-over-year growth, indicating the company is navigating cyclical headwinds while maintaining longer-term momentum.

On Monday morning, STMicroelectronics shares traded up 2.00% at $26.52 in premarket activity.

The SpaceX partnership demonstrates how even in a challenging market environment, specialized technical relationships can create durable competitive advantages. Building custom chips at this scale requires years of engineering collaboration and manufacturing optimization. That's not something competitors can replicate overnight, which matters quite a bit when the commercial space industry is just getting started.

Back to News

How a European Chipmaker Powers Every Starlink Terminal in SpaceX's Growing Constellation

MarketDash Editorial Team
6 hours ago
STMicroelectronics has shipped over 5 billion chips to SpaceX over the past decade, powering the Starlink network that now serves 8 million users across 150 countries with more than 20,000 new terminals produced daily.

STMicroelectronics N.V. (STM) doesn't get the headlines that SpaceX does, but the European semiconductor company has quietly become essential infrastructure for Starlink's global expansion. After a decade of collaboration, the partnership has reached a remarkable scale: more than 5 billion RF antenna chips shipped, over 10,000 satellites powered, and 8 million users connected worldwide.

That's the kind of volume that matters in the chip business. STMicroelectronics now delivers more than 5 million chips to SpaceX every single day, supporting a production line that cranks out over 20,000 Starlink user terminals daily and ships them to more than 150 countries.

Engineering at Scale

What makes this partnership interesting isn't just the numbers. It's how deeply integrated the two companies have become. This isn't a typical supplier relationship where one company orders off-the-shelf components. STMicroelectronics and SpaceX co-design custom chips from concept through high-volume manufacturing, with engineering teams in France and Italy working directly on Starlink products.

The user terminal itself represents a fascinating piece of engineering: the first consumer phased-array antenna designed for self-installation. These terminals connect directly to thousands of satellites orbiting in low Earth orbit, and they need to work reliably while being cheap enough to mass produce. That's where STMicroelectronics comes in, providing not just the RF antenna chips but also STM32 microcontrollers, secure elements, and GNSS modules.

Remi El-Ouazzane, president of the company's Microcontrollers, Digital ICs, and RF Products Group, emphasized the scope of collaboration, noting it spans from initial concept development through high-volume manufacturing and includes space-grade technologies for the satellites themselves.

The manufacturing footprint tells its own story: chip fabrication happens in France, with packaging and testing in Malaysia and Malta. The collaboration leans heavily on BiCMOS technology and panel-level packaging to hit the volume, quality, and cost targets necessary for a project of this scale.

The Commercial Space Opportunity

Starlink's latest V3 satellites now deliver over one terabit per second of fronthaul throughput, reflecting the intense performance demands of modern low Earth orbit constellations. And Starlink isn't alone in this space. Amazon.com Inc. (AMZN) is building out its Project Kuiper constellation, while OneWeb and Eutelsat are expanding their own networks.

All of this activity is driving demand for specialized chips that can handle high data rates while surviving the harsh environment of space. STMicroelectronics is positioning itself right in the middle of this shift, with plans to supply inter-satellite laser links for SpaceX and partnerships with European programs including the EU's Iris 2 satellite constellation.

According to a Reuters report on Monday, STMicroelectronics has already shipped more than 5 billion RF antenna chips to SpaceX, and the company expects that figure could double within two years as deployment accelerates.

Business Reality Check

Despite the impressive partnership, STMicroelectronics (STM) shares are up just over 4% year-to-date, reflecting broader challenges in the semiconductor market. On November 12, CEO Jean-Marc Chery offered guidance suggesting 2026 would begin at normal demand levels, pushing back against concerns about excess inventory following a slower-than-expected recovery in 2025.

The near-term outlook includes a sequential decline of 10% to 11% in first-quarter revenue from projected fourth-quarter revenue of $3.28 billion. However, that still represents roughly 20% year-over-year growth, indicating the company is navigating cyclical headwinds while maintaining longer-term momentum.

On Monday morning, STMicroelectronics shares traded up 2.00% at $26.52 in premarket activity.

The SpaceX partnership demonstrates how even in a challenging market environment, specialized technical relationships can create durable competitive advantages. Building custom chips at this scale requires years of engineering collaboration and manufacturing optimization. That's not something competitors can replicate overnight, which matters quite a bit when the commercial space industry is just getting started.