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Cadence Design Systems (CDNS) is collaborating on AST SpaceMobile's (ASTS) space-based cellular broadband network to fill in coverage gaps in areas without reliable internet.

The companies developed a special low-power chip AST5000 ASIC, which is essential to improve satellite processing power for AST's new BlueBird program.

Cadence's Palladium Emulation Platform was used to test and improve the chip design before manufacturing, the companies said Tuesday in a statement.

AST plans to use the new chips to provide each larger satellite with the bandwidth and data speeds to support voice calls, videos and data on the space-based network.

Cadence shares dropped 0.3% in recent Tuesday trading, and AST fell 1.2%

Price: 309.22, Change: -1.06, Percent Change: -0.34