It is expected to deliver over 5 billion Starlink chips in the next two years! Commercial space travel may become a new growth engine for STMicroelectronics NV ADR RegS (STM.US).

Chip manufacturer STMicroelectronics NV ADR RegS (STM.US) disclosed to the media that since the cooperation began around 2015, the company has delivered over 5 billion RF antenna chips for Elon Musk's SpaceX's Starlink satellite network. According to the partnership between the two parties, this number may double by 2027, meaning that STMicroelectronics NV ADR RegS could deliver up to 5 billion chips in the next two years, equivalent to the delivery volume of the past decade. Currently, the aerospace industry is transitioning from government-led projects to rapidly growing commercial markets, including well-known projects such as SpaceX's Starlink, European satellite company OneWeb's low-earth orbit satellite system, and Amazon.com, Inc.'s "Leo" low-earth orbit satellite program. This trend is driving the demand for professional chips that can handle high data rates and survive in harsh space environments. Remi El-Ouazzane, President of the Microcontrollers and Digital Integrated Circuits Division at STMicroelectronics NV ADR RegS, stated, "The delivery volume for user terminals in the past decade could actually double in the next two years." However, he did not provide specific targets. He mentioned that many low-earth orbit satellite operators are expected to leverage the technology used in the antenna chips based on the company's BiCMOS technology for Starlink user terminals. Data shows that STMicroelectronics NV ADR RegS's BiCMOS technology, particularly the SiGe (silicon-germanium) version, 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, suitable for single-chip integration of RF, analog, and digital circuits. It is worth noting that STMicroelectronics NV ADR RegS recently released the new generation high-performance STM32V8 microcontroller (MCU) last month, specifically designed for high reliability operation in harsh environments, including the high radiation environment of low-earth orbit (LEO). SpaceX has selected the STM32V8 chip to design the Starlink miniaturized laser system for high-speed communication among the Starlink satellites running in low-earth orbit. Michael Nicolls, Vice President of the SpaceX Starlink Engineering Department, said, "The Starlink satellite laser system, using the STM32V8 microcontroller from STMicroelectronics NV ADR RegS, has been successfully deployed in space, marking a significant milestone in advancing high-speed connectivity projects in the Starlink network. The high-performance computing power of STM32V8, combined with large capacity embedded storage and digital functions, is crucial for meeting our stringent real-time processing requirements. Additionally, thanks to the 18nm FD-SOI manufacturing process, STM32V8 provides higher reliability and robustness in low-earth orbit environments. We look forward to integrating STM32V8 into other products and utilizing its powerful features to develop next-generation advanced applications." The demand from commercial space companies like SpaceX is expected to drive growth in STMicroelectronics NV ADR RegS's professional chip business, boosting the company's performance amid weak demand for analog chips. The financial report released by STMicroelectronics NV ADR RegS in October showed a 2% year-over-year decline in third-quarter revenue to $3.19 billion, a 22% year-over-year decrease in earnings per share to $0.29, and a significant 53% year-over-year drop in operating profit to $180 million. Additionally, the company expects fourth-quarter revenue to be $3.28 billion, below analysts' average expectations of $3.35 billion. The Rise of Commercial Space Recently, the commercial space industry has received significant attention from investors, mainly due to reports related to the potential IPO of SpaceX, which has a valuation of up to $800 billion. According to reports, SpaceX is seeking to go public in the mid-to-late next year with a target valuation of around $1.5 trillion, comparable to the record of about $1.7 trillion set by Saudi Aramco in 2019. Reports suggest that SpaceX executives are beginning the process of selecting Wall Street bankers to advise on the IPO, indicating a substantial step towards SpaceX's IPO. An internal memo sent by SpaceX CFO Brett Johnson to employees shows that if the IPO proceeds, the fundraising purposes will include increasing the launch frequency of the Starship rocket to "crazy levels," deploying AI data centers in space, and advancing unmanned and manned Mars missions. The memo also indicates that SpaceX has set the latest internal stock issuance price at $421 per share, corresponding to a staggering valuation of $800 billion for the company, double the valuation level of approximately $400 billion earlier this year. The potential IPO of SpaceX, along with its financing needs, has intensified the global competition in the commercial space sector. In August of this year, U.S. President Trump signed an executive order to relax commercial space regulations, bringing a significant breakthrough for the aerospace industry that has long advocated reducing administrative barriers. In China, the National Space Administration recently issued the "Action Plan for Promoting High-Quality and Safe Development of Commercial Space (2025-2027)" and announced the establishment of a commercial space department. Analysts point out that commercial space has been mentioned in the Chinese government work report for two consecutive years, and the "15th Five-Year Plan" proposal also emphasizes the development of aerospace, which is expected to accelerate industry development. Analysts suggest that low-cost, fast delivery, and high-capacity commercial rockets with clear guidance to scale and reusability are expected to provide abundant low-cost propulsion support for space infrastructure construction, further solidifying the foundation for the development of the commercial space industry. Amid the backdrop of rare deterministic growth in commercial space, SpaceX's soaring valuation signals a repricing of tangible technology companies by capital. As BlackRock, Inc. CEO Fink said, "We are not investing in rockets, but in the next ticket for human civilization."