Shares of AST SpaceMobile (NASDAQ: ASTS) rallied as much as 8.4% early Thursday, then settled to close up 1.4% after the satellite designer and manufacturer reached a significant milestone in its efforts to build the world's first space-based cellular broadband network accessible by everyday smartphones.

In a press release late Wednesday, AST SpaceMobile announced it has commenced the "tape-out phase" for its Application-Specific Integrated Circuit (ASIC) in collaboration with Taiwan Semiconductor Manufacturing (NYSE: TSM). In semiconductor manufacturing, the tape-out phase is a critical process that marks the transition from design to actual production.

"As we advance toward the orbital launch of our Block 1 BlueBird satellites in the upcoming months, we are simultaneously making steady progress on the technology underlying our Block 2 satellites," explained AST SpaceMobile Chairman and CEO Abel Avellan. "[...] With the ASIC at the heart of our Block 2 program, we are a big step closer to ushering in a new era of satellite communications, helping to empower people with reliable connectivity, regardless of their location."

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Source Fool.com