Over 5 billion Starlink chips are expected to be delivered in the next two years! New engine for commercial aerospace or semiconductor (STM.US) growth

The Zhitong Finance App learned that an executive of chipmaker STM.US (STM.US) revealed to the media that since the two sides began cooperation around 2015, the company has delivered more than 5 billion RF antenna chips to Elon Musk's SpaceX (Starlink) satellite network. According to the partnership between the two parties, this number could double by 2027, which means ST could deliver 5 billion chips within the next two years, which is comparable to the number delivered in the past decade.

Currently, the space industry is shifting from government-led projects to a rapidly growing commercial market. Well-known ones include SpaceX's Starlink, the OneWeb low-orbit satellite system under the European Communications Satellite Company, and the Amazon (AMZN.US) low-orbit satellite program called “Leo.” This boom is generating demand for specialized chips that can handle high data rates and survive in the harsh environment of space.

Remi El-Ouazzane, president of STMicrocontrollers and Digital Integrated Circuits Division, said: “The delivery volume of user terminals over the past ten years may actually double within the next two years.” But he didn't give specific goals. Referring to antenna chips based on the company's BiCMOS technology used in Starlink user terminals, he said, “I expect many LEO satellite operators will use this technology.”

Data shows that ST's BiCMOS technology, particularly SiGe (silicon germanium) versions, has significant advantages in high-performance and radiation-resistant applications. This technology combines the high speed and high gain characteristics of bipolar transistors with the low power advantages of CMOS, and is suitable for single-chip integration of RF, analog, and digital circuits.

It's worth mentioning that ST just released a new generation of high-performance microcontrollers (MCU), the STM32V8, last month. The microcontroller is specifically designed to operate reliably in harsh working environments, one of which is a low orbit (LEO) high radiation environment. SpaceX has selected the STM32V8 chip to design the Starlink miniature laser system to connect to Starlink satellites operating at high speed in low orbit.

Michael Nicolls, vice president of Starlink Engineering at SpaceX, said, “The Starlink satellite laser system uses ST M32V8 microcontroller and was successfully deployed in space, marking significant progress in advancing high-speed connectivity projects in the Starlink network. The STM32V8's high performance computing power combined with large embedded memory and digital functions is essential to meet our stringent real-time processing needs. At the same time, thanks to the 18nm FD-SOI manufacturing process, the STM32V8 brings higher reliability and robustness to low orbit environments. We look forward to integrating the STM32V8 into other products and using its powerful features to develop the next generation of advanced applications.”

Demand from commercial space companies such as SpaceX may drive the growth of ST's specialty chip business and boost the company's performance in the face of weak recovery in demand for analog chips. According to ST's financial report released in October, the company's third-quarter revenue fell 2% year over year to US$3.19 billion, earnings per share fell 22% year over year to US$0.29 million, and operating profit fell sharply by 53% year on year to US$180 million. Additionally, the company projected fourth-quarter revenue of $3.28 billion, falling short of analysts' average expectations of $3.35 billion.

A commercial space boom is on the rise

Recently, the commercial space circuit has received close attention from investors, mainly due to reports about a potential SpaceX IPO with a valuation of up to 800 billion US dollars. According to reports, SpaceX is seeking to go public in the middle to late next year, with a target valuation of about 1.5 trillion US dollars. This valuation scale will be comparable to Saudi Aramco's record of about 1.7 trillion US dollars in 2019. The report said that SpaceX executives are beginning to select Wall Street bankers to provide consulting services for their IPOs, which represents a substantial step towards an IPO.

According to an internal memorandum sent to employees by SpaceX Chief Financial Officer Brett Johnson, if the IPO is successful, fund-raising purposes will include increasing the launch frequency of Starship rockets to a “crazy level”, deploying AI data centers in space, and advancing unmanned and manned missions to Mars. The memorandum also shows that SpaceX has set the latest internal stock issuance price at 421 US dollars per share, corresponding to the company's valuation reaching an astonishing 800 billion US dollars, double the valuation level of about 400 billion US dollars earlier this year.

SpaceX's potential listing and financing requirements have also made the global commercial space competition even more intense. In August of this year, US President Trump signed an executive order to relax commercial space regulations, bringing a major breakthrough to the space industry, which has long called for the reduction of administrative barriers. In China, the National Space Administration recently issued the “Action Plan to Promote the High-Quality and Safe Development of Commercial Space (2025-2027)” and announced the establishment of a commercial space department. The agency pointed out that commercial aerospace has been included in the work report of the Chinese government for two consecutive years, and the “15th Five-Year Plan” plan proposal also emphasizes the development of aerospace, which is expected to accelerate the development of the industry.

Some analysts pointed out that commercial rockets have a clear orientation towards low cost, fast execution, and large capacity. Large-scale, recyclable commercial rockets are expected to provide sufficient low-cost capacity support for space infrastructure construction, thus further consolidating the foundation for the development of the commercial space industry.

Analysts believe that against the backdrop of commercial aerospace showing rare deterministic growth, the jump in SpaceX's valuation marks capital's repricing of physical technology companies. As BlackRock CEO Fink said, “We're not investing in rockets, we're investing in the next ticket to human civilization.”