On January 9, 2026, the Federal Communications Commission (FCC) of the United States officially issued approval documents, allowing SpaceX to deploy and operate 7500 second-generation Starlink low orbit communication satellites. The number of newly authorized satellites this time set a new historical high for single operator approval, directly opening the curtain for the dense network of global low orbit satellite constellations in 2026. Prior to this, the first generation Starlink satellites had completed the deployment of over 5000 satellites, achieving initial global continuous coverage. However, the bandwidth capacity, single satellite communication speed, and terminal access limit could not meet the massive IoT device access needs of the AI era. The second generation Starlink satellites underwent a comprehensive upgrade in three major hardware dimensions: payload computing power, phased array antennas, and on-board processing chips. The number of dedicated communication chips integrated within each satellite reached 2.8 times that of the previous generation products, and the procurement value of single satellite RF chips and beamforming chips increased by over 120%.

The outbreak of the global satellite communication industry is not driven by a single enterprise. As early as the end of December 2025, China has officially submitted an application to the International Telecommunication Union (ITU) for the registration of the frequency and orbit resources of 203000 low orbit satellites. It will lock the core space resources of domestic satellite Internet construction in the next decade at one time, superimpose the national network constellation and private commercial satellite enterprises to synchronously accelerate the pace of launch. The total number of satellites planned to be launched globally in 2026 will exceed 40000, directly restructuring the downstream demand structure of communication chips. In the past decade, the growth of the communication chip market mainly comes from the two traditional scenarios of smart phones and base station equipment. The growth rate has slowed year by year, while satellite Internet has brought a new incremental market. According to the industrial chain measurement data, the purchase cost of a single low orbit satellite chip is about 180000-250000 dollars, of which RF front-end, baseband processing, and on-board AI computing chips account for more than 75%. The centralized production of tens of thousands of satellites will directly bring a 10 billion dollar chip incremental market.

In addition to the increase in satellite chips, the explosive growth in demand for ground terminal chips is stronger. By 2026, mainstream flagship smartphones, new energy vehicle T-BOX, industrial grade drones, and outdoor wearable devices will be fully equipped with satellite direct communication modules, no longer relying on ground base station relay transmission. The internal integration of satellite specific baseband and RF chips in terminals will become standardized configurations. Previously, satellite communication terminal chips were monopolized by overseas manufacturers for a long time, with a localization penetration rate of less than 8%. With domestic mobile phone brands and car companies mass installing domestic satellite communication modules, local chip design companies have ushered in the opportunity for large-scale bulk supply. Several domestic RF chip manufacturers have disclosed that orders for in vehicle satellite communication chips surged 420% year-on-year in the first quarter of 2026. Samples of consumer electronics satellite direct connection chips have entered the verification stage of top mobile phone manufacturers and are expected to achieve mass production and installation in the second half of the year.

From the perspective of process adaptation, the satellite chip needs to withstand cosmic radiation and extreme temperature difference for a long time in orbit, and cannot use the advanced 7nm and below extreme advanced processes. The 28nm, 40nm and 55nm mature processes become the optimal process nodes for satellite communication chips, which just fits in with the production capacity advantages of domestic SMIC and Huahong Semiconductor mature wafer production lines, and there is no restriction of advanced processes. The domestic mature process wafer production capacity continues to be released, coupled with the mature special reinforcement packaging technology of packaging and testing enterprises, domestic satellite chips have complete full chain delivery capabilities. Barclays semiconductor industry research data shows that the global satellite communication chip market will reach 12.7 billion US dollars in 2026, with a year-on-year growth of more than 89%, of which the proportion of Chinese Mainland manufacturers' shipments is expected to increase to 19%, doubling from 2025.

At the level of segmented tracks, beamforming dedicated chips are the core components of satellite phased array antennas. A single phased array antenna integrates dozens of dedicated ASIC chips, with extremely high technical barriers. Previously, only three overseas companies had mass production capabilities. After three years of technological breakthroughs, two domestic IC design companies have completed the delivery of engineering samples and entered the stage of joint debugging and testing by satellite manufacturers. Once imported in bulk, it will break the exclusive monopoly pattern. At the same time, the demand for on-board edge AI processing chips needs to be synchronized upstream. Satellites no longer only undertake signal forwarding functions, but can complete remote sensing image analysis and IoT data preprocessing in orbit. New requirements have been put forward for the power consumption and computing density of the end side computing chips. Both domestic Ascend and Pingtouge end side AI chips can be adapted and transformed to enter the new track of on-board computing power.

At the risk level, the competition for satellite orbit and frequency resources among countries around the world is becoming increasingly fierce, and the waiting period for ITU orbit positions is lengthening. Some small and medium-sized commercial satellite enterprises have not achieved the expected launch progress, or have slightly delayed the delivery rhythm of chip orders; At the same time, the reliability verification cycle of satellite chips against radiation can last for 12-18 months, and there is a certain time period for the introduction and mass production of new products. However, in the medium and long term, satellite Internet is the core component of digital infrastructure construction. Policies of various countries continue to increase support. The second growth curve of communication chip manufacturers has been established. Domestic chips have strong certainty of overtaking on curves with the advantages of mature manufacturing processes. The radio frequency, baseband, and on-board computing power subdivision tracks will continue to maintain a high level of scenery for at least 3-5 years.