This paper discusses the benefits of using largescale projects, involving many groups of students with different backgrounds, in the education of undergraduate microelectronics engineering students. The benefits of involving students in large, industry-like projects are first briefly reviewed. The organisation of undergraduate programmes is presented, and it is described how students can be involved in such large projects, while maintaining compatibility with undergraduate programmes. The generic discussion is illustrated with an example of the University of Southampton Small Satellite (UoS 3) project, which has been running for two academic years and involved a number of students to date. It is discussed how the work on a project can be split between different student groups so that they can be assessed on it. Definition of interfaces between different groups, as well as how they are managed in the UoS 3 project, are described. The difficulties that large, student-run projects are likely to face are mentioned and recommendations about the structuring of degree programmes to amend them to large projects, are made. Lastly, conclusions about the applicability and benefits of small satellite projects to undergraduate education in electronics are drawn.