Global chipmaker STMicro ships 5 billion chips to Starlink

STMicroelectronics has shipped over 5 billion radio-frequency antenna chips to SpaceX for use in the Starlink satellite network since their partnership began around 2015.

The Geneva-based chipmaker supplies specialized chips designed to withstand the demands of space, supporting Starlink’s user terminals across more than 150 markets.

A senior executive at STMicroelectronics said the volume of chips delivered to SpaceX could double over the next two years, reflecting rapid expansion in the commercial satellite market.

The company is also set to supply inter-satellite laser links for SpaceX, and is working with European firms, including Thales and Eutelsat, on satellite projects such as the European Union’s Iris 2 constellation.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

STMicro space chip unit economics still unclear despite 5 billion unit claim

STMicroelectronics says it shipped 5 billion RF antenna chips and may double that. It has not shared revenue exposure or dollar content per Starlink terminal. Those numbers shape how much the deal matters.
Average selling prices, gross margins, and revenue mix tied to SpaceX are missing. Investors cannot value the tie-up or gauge concentration risk (overreliance on a single customer).
Independent teardowns (component-by-component disassembly) of Starlink terminals can surface which ST parts ship and in what counts. That helps estimate total addressable market and competitive positioning in the space semiconductor sector.

Inter-satellite laser link suppliers offer room for component makers

STMicro is pushing into inter-satellite laser links (laser-based systems that connect satellites to each other). Low Earth Orbit (LEO) constellations need these links, with at least 15 systems on the market 1.
The optical satellite communication market will rise from $282 million in 2023 to $1.134 billion by 2028 at a 32.1% Compound Annual Growth Rate (CAGR), pushed by demand for high-speed, secure space links 2.
Suppliers of optical parts and satellite integrators selling into this market can look to Mynaric (laser communication terminals), Tesat (space communications equipment), or BridgeComm (free-space optical communications) 2. Defense and commercial buyers need specialized lasers, optical amplifiers, and pointing systems that work across up to 5,000 km links 3.