Billionaire investor Elon Musk’s SpaceX (PC:SPXEX) is in talks with chipmakers to embed chips into smartphones, enabling “direct-to-device” (D2D) service. SpaceX aims to develop a technology that would enable smartphones to directly access Starlink’s satellite-based service without relying on traditional ground infrastructure. SpaceX hit a $400 billion valuation in its latest share sale as Starlink continues to grow and investors bet on Starship’s success.
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The news was shared by SpaceX President Gwynne Shotwell at an event in Paris on September 16. She confirmed that SpaceX is collaborating with chip companies to put “proper chips in phones.” Musk had previously shared a similar vision and also hinted at the possibility of SpaceX acquiring a telecom carrier to advance the effort.
How SpaceX Plans to Deliver D2D Service
Recently, SpaceX reached a $17 billion deal with EchoStar Corp. (SATS) to acquire its AWS-4 and H-Block Spectrum licenses. This acquisition gives SpaceX access to nationwide mid-band spectrum necessary for operating its Starlink direct-to-cell 5G service, eliminating the need for conventional cell towers.
To make the service viable, SpaceX must build advanced D2D satellites and partner with mobile network operators so that devices can seamlessly integrate with the service. Shotwell noted that SpaceX will start D2D smartphone testing next year.
Musk recently stated that it will take approximately two years for manufacturers to modify their chips to support the AWS-4 spectrum, with additional time needed for related developments. Reports also suggest that SpaceX still needs ground-based mobile licenses to fully launch its D2D offering, which is likely why it is keen to partner more with mobile operators.
The shift to D2D service is a big step forward in wireless communication, making internet access easier in remote and underserved areas. Millions already use Starlink’s satellite internet, and this new service could reach even more people. With this push, SpaceX positions itself at the forefront of satellite-to-cell connectivity, combining space technology with mobile communication.
Which Is the Best Aerospace and Defense Stock?
Since SpaceX is a private company, investors willing to gain exposure to the aerospace and defense sector may buy stocks of other listed companies in the sector. We used the TipRanks Stock Comparison Tool for aerospace and defense stocks to determine which company is preferred by analysts.
Currently, Wall Street has a “Strong Buy” consensus rating on Howmet Aerospace (HWM), L3Harris (LHX), and Boeing (BA) stocks, with BA stock offering the highest upside in the next twelve months.
