Orbital Chip Foundries: Aegis & United Semi Launch Space Race for Tech

HOUSTON, TX – January 06, 2026 – In a move that signals a new industrial revolution taking shape in low Earth orbit, Houston-based Aegis Aerospace Inc. has announced a landmark partnership with United Semiconductors LLC to establish what they describe as the world's first dedicated commercial facility for manufacturing advanced materials in space. The collaboration, built on Aegis's Advanced Materials Manufacturing Platform (AMMP), will focus on producing high-purity semiconductor crystals, a venture poised to reshape global technology supply chains and bolster national security.

The partnership arrives on the heels of a major grant from the Texas Space Commission, which awarded Aegis Aerospace up to $10 million to develop the AMMP. This state-level backing underscores a strategic push to position Texas at the epicenter of the burgeoning in-space economy.

"We are thrilled to join forces with United Semiconductors," said Stephanie Murphy, CEO of Aegis Aerospace, in a statement. "Together, we will accelerate the in-space manufacturing of essential semiconductor materials, pushing the boundaries of what is possible in space technology."

The Microgravity Advantage

The core premise of the venture lies in exploiting the unique physics of microgravity. On Earth, the process of growing crystals for semiconductors is constantly fighting against gravity, which causes convection currents in molten materials and sedimentation. These forces introduce tiny imperfections and impurities into the crystal lattice, degrading the performance of the final microchip. In the near-weightlessness of low Earth orbit, these disturbances are virtually eliminated.

This allows for the creation of larger, more uniform, and structurally perfect crystals. The result is semiconductors with significantly fewer defects, leading to higher efficiency, better performance, and enhanced durability. The benefits are particularly pronounced for advanced compound semiconductors, such as the III-V binary and ternary materials that United Semiconductors specializes in. These materials, including gallium arsenide (GaAs) and gallium nitride (GaN), are critical for next-generation telecommunications, high-frequency electronics, advanced sensors, and power systems.

The vacuum of space also provides an ultra-clean environment, ideal for the delicate processes of thin-film deposition, while the constant solar radiation can be harnessed for energy-intensive manufacturing. By moving this production off-planet, the partnership aims to create a new class of high-performance electronics that are impossible to fabricate on the ground.

"Our decades of experience in semiconductor manufacturing, including successful experiments aboard the International Space Station, combined with Aegis Aerospace's expertise in building and operating space infrastructure, will create a powerful partnership," stated Dr. Partha Dutta, Chief Technologist of United Semiconductors.

A Crowded Race to the High Frontier

While Aegis and United Semiconductors bill their project as the "first dedicated commercial facility," they are entering an increasingly competitive field. The race to commercialize orbital manufacturing is accelerating rapidly, with several key players making significant strides.

UK-based startup Space Forge recently announced it had successfully generated plasma aboard its ForgeStar-1 satellite, a critical step for gas-phase crystal growth, which it called a "world-first for commercial in-space manufacturing." California's Varda Space Industries, which designs autonomous, reentry-capable satellites for in-orbit production, has also partnered with United Semiconductors on a multi-flight deal to produce semiconductors.

Interestingly, United Semiconductors' web of collaborations highlights the complex and dynamic nature of this emerging industry. The company has not only partnered with both Aegis and Varda but also signed a Memorandum of Understanding with Space Forge to develop the supply chain for space-grown materials. This suggests a strategy of leveraging multiple platforms to scale production and solidify its position as a key supplier of orbital-made materials. The claim to be the "first" may hinge on the definition of a "dedicated facility" versus a single-mission satellite or experimental platform, but the direction is clear: the industrialization of space is well underway.

Texas's Orbital Ambitions

The partnership is a significant victory for Texas's strategic economic goals. The $10 million Space Exploration & Aeronautics Research Fund (SEARF) grant awarded to Aegis is a clear signal of the state's intent to lead in the commercial space sector. Established in 2023 with a $150 million appropriation, the Texas Space Commission is actively investing in projects that promise to build a robust space economy within the state.

The grant will fund the two-year development of the AMMP flight hardware, with a critical design review slated for mid-to-late 2026 and hardware fabrication extending into 2027. Aegis anticipates the project will create new, high-tech job opportunities in Texas, expanding the state's aerospace and manufacturing workforce. By supporting foundational infrastructure like the AMMP, Texas is not just funding a single mission but enabling a platform for future research, development, and commercial services that can be offered globally.

Securing Supply Chains from Space

Beyond the commercial and technological implications, the venture carries significant weight for national security. United Semiconductors has been a trusted supplier of critical substrates to the U.S. Department of Defense and national laboratories since 2005. The company holds a unique position as the only domestic producer of 6-inch diameter III-V binary semiconductors and the sole global producer of large-area III-V ternary semiconductors.

These materials are vital components in advanced defense systems, including radar, electronic warfare, and satellite communications. The global semiconductor supply chain has proven vulnerable to geopolitical disruptions, creating a strategic imperative to secure access to these critical technologies. By creating a manufacturing base in orbit—a domain that transcends terrestrial borders and chokepoints—this partnership offers a pathway to a more resilient and secure supply chain for the nation's most sensitive defense and aerospace applications.

This orbital foundry could provide the U.S. with an unparalleled source of ultra-high-performance components, ensuring a technological edge in an era of increasing global competition. As private industry and government investment converge, the high ground of low Earth orbit is rapidly transforming from a final frontier for exploration into the next frontier for industry.