Why user-terminal silicon will shape LEO’s next phase

By Ian Lankshear

September 14, 2026

As Low Earth Orbit (LEO) satellite networks target mass-market broadband, mobility and enterprise services, the chipset inside the user terminal – not only the constellation in orbit –will determine the achievable cost, power consumption and production scale

The next phase of satellite connectivity will be decided as much on the ground as in space.

For LEO and multi-orbit networks to reach genuine mass adoption, operators must be able to deliver millions of affordable, reliable terminals to homes, businesses, vehicles and remote sites. That makes the RF front end, beamforming ICs and modem silicon fundamental to the commercial model. Together, they determine terminal cost, power consumption, performance and the ability to manufacture at volume.

Terminal design should therefore not be treated as a downstream hardware decision. It is a strategic platform choice that shapes the economics and scalability of the network itself.

Hybrid beamforming offers the practical balance

Electronically steered phased-array antennas are becoming essential to LEO connectivity, allowing terminals to track fast-moving satellites without mechanical movement. However, choosing the right beamforming architecture involves important trade-offs.

Purely analogue arrays can be compact and RF-efficient but provide less flexibility for beam control and interference management. Fully digital beamforming offers greater control, but digitising signals at every antenna element can increase data-conversion, processing, power and thermal requirements beyond what is practical for many high-volume terminals.

Hybrid beamforming provides a workable middle ground. It combines RF signals near the antenna elements, then uses a smaller number of digital channels for calibration, tracking and interference mitigation. This approach retains much of the efficiency of analogue RF while adding the digital control needed for demanding LEO operating environments.

As terminal requirements expand – through higher throughput, frequent handovers, dual-beam operation or switchable polarisation – these architectural choices have a direct impact on RF paths, processing requirements, package complexity and the overall power budget.

Chipset strategy determines terminal economics

Hybrid architectures deliver their greatest value when the RF front end, beamforming capability and modem are designed as a coherent system.

A custom chipset strategy allows optimisation across RF performance, digital processing, packaging, thermal management, power and bill-of-materials cost. It can also reduce component count and allow a common silicon platform to be reused across different terminal types and market segments.

The right route depends on the expected scale. A dedicated ASIC requires substantial upfront investment, but can achieve the lowest unit cost, power consumption and footprint when that investment is spread across high, relatively consistent production volumes. An application-specific standard product (ASSP) offers a lower-risk alternative for organisations without ASIC-scale volume, although shared devices may include functionality that some customers do not need – and therefore add permanent cost and power overhead.

The key is to plan for the intended market from the outset. A terminal chipset suitable for tens of thousands of units is fundamentally different from one designed to support millions.

A strategic opportunity for Europe

This issue is particularly relevant to Europe’s emerging satellite connectivity programmes, including IRIS². Europe has capabilities in RF and mixed-signal design, semiconductor manufacturing, packaging and satellite communications systems. The opportunity is to create enough commonality in terminal requirements and chipset roadmaps to support competitive European silicon at meaningful scale.

A common underlying terminal architecture need not mean a single supplier. Shared interfaces, baseline requirements and qualified second sources can provide resilience and competition without fragmenting volumes across incompatible designs.

For LEO operators and policymakers, the conclusion is straightforward: user-terminal silicon is strategic infrastructure. The decisions made early – on terminal architecture, capability and scale – will determine the cost, power efficiency and competitiveness of satellite connectivity for years to come.

Explore EnSilica’s beamforming ASICs for LEO and 5G NTN satellite user terminals.