By Nathan Vifflin<\/p>\n
May 4 (Reuters) – STMicroelectronics is targeting well above $3 billion in cumulative revenue for its semiconductor space business from 2026 to \u200c2028, it said on Monday, helped by surging demand for chips \u200cused in low-Earth orbit satellite networks.<\/p>\n
Shares in the Franco-Italian chipmaker rose by as much as \u200b7%, before settling 2.2% higher at 1536 GMT.<\/p>\n
STMicro said its LEO revenue rose to about $600 million in 2025 from about $175 million in 2021, and it is now close to $1 billion in 2026.<\/p>\n
“We are just in the early innings of \u200cthis market,” STMicro executive Remi \u2060El-Ouazzane told analysts in a conference call.<\/p>\n
Players such as Starlink, AST SpaceMobile, Amazon Leo are pushing low-Earth orbit satellite communications \u2060from a niche towards mass-marketed broadband and direct-to-cell services, and potentially orbital data centres.<\/p>\n
STMicro hopes its decade-long supply partnership with Starlink in satellites and user terminals \u200bwill give \u200bit a first-mover advantage to keep as \u200bmuch of its near 90% \u200cmarket share as possible as this market rapidly expands, attracting competitors.<\/p>\n
One of Europe’s largest chipmakers said China represented a large opportunity in user terminals, but it will miss out on satellite technology because of export controls.<\/p>\n
“We are unapologetically European. So we end up being actually U.S. and China compatible,” El-Ouazzane said.<\/p>\n
“The \u200cChina compatibility, though, starts and finishes at \u200buser terminal. Because of export control, we \u200bcannot have any satellite technology \u200bhappening in China,” he added.<\/p>\n
The company also identified orbital data \u200ccentres as a possible future market, \u200bbut said it has \u200bnot included any related revenue in its current 2026-2028 target.<\/p>\n
“My wild guess as to when we could start to see, a relevant amount \u200bof orbital data centres \u200cin the sky, I would say three years from now would \u200bbe maybe an interesting guess,” El-Ouazzane told reporters.<\/p>\n
(Reporting by Nathan Vifflin \u200bin Gdansk; Editing by Alexander Smith)<\/p>\n","protected":false},"excerpt":{"rendered":"By Nathan Vifflin May 4 (Reuters) – STMicroelectronics is targeting well above $3 billion in cumulative revenue for…\n","protected":false},"author":2,"featured_media":566377,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[13196,194038,19203,90,416,194037,56,54,55],"class_list":["post-566376","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-data-centres","tag-remi-el-ouazzane","tag-revenue","tag-science","tag-space","tag-stmicroelectronics","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/566376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=566376"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/566376\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/566377"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=566376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=566376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=566376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}