From Earth to orbit: Space factory set to revolutionize semiconductor production

Space Forge, a British start-up, is developing a space-based factory to produce materials, especially semiconductors or chips for quantum computers, defence infrastructure, and AI data centers.

In orbital manufacturing of semiconductors, the company has unlocked an unprecedented milestone, a method to create ultra-high crystal “seeds” in space.

In June 2025, Space Forge launched a microwave-sized factory satellite called ForgeStar-1 into orbit to develop plasma, which in turn would help to create highly advanced crystals for future ventures.

These crystals would lay the foundation for manufacturing semiconductors back on Earth, helping to tackle global chip shortages amid competitive AI landscape.

Orbital manufacturing: A new frontier in semiconductor race

Semiconductor manufacturing, undoubtedly, rules the Earth, in which Nvidia holds dominance.

As artificial intelligence turns into a more competitive landscape, chip-manufacturing becomes the need of the hour to avoid bottlenecks in supply chains.

Hence, space emerges as the most suitable frontier, outweighing Earth's industrial base.

According to Space Forge CEO and co-founder Joshua Western, “Space offers an unparalleled industrial base compared to Earth.”

Huge gains, more efficiency

Semiconductors when manufactured under zero gravity, can line up in more regular structures. Moreover, purity can be achieved to a high level as space slashes the chances of contamination.

In space, “Semiconductor crystals that are hundreds, if not thousands, of times higher in purity compared to those that can be produced on the ground,” Western explained.

These two properties will yield huge gains in the efficiency of semiconductors.

According to Western, Space Forge is expected to send a commercial production system into orbit within two years.

“Our core markets right now are aerospace and defense and telecommunications and data,” he added.

The global semiconductor industry has grown by 22 percent in 2025 and is expected to reach $1 trillion industry by 2027, as reported by Deloitte.

The massive surge in share has been driven by an AI-powered boom in recent years.

As countries are racing to win the AI race, the need for cutting-edge chips have become concrete, which can be fulfilled by the space-based technologies.