EnSilica shares rose as much as 6% in early London trade after the semiconductor business unveiled a new contract worth $18m.
The Oxford-based business did not name its new customer but said it was a “leading European based supplier of electromechanical products” and a deal using an Arm-based mixed signal sensor interface ASIC (application-specific integrated circuit) to be “used across a range of automotive and industrial applications.”
EnSilica said the total value of the contract is which is estimated to exceed $18m over 7 years, based on fees and forecast production volumes. The contract will commence in April 2025, with revenues falling into EnSilica’s current and next financial years, with supply revenues forecast to commence during 2027.
The firm added that the deal “materially increases” its chip supply pipeline, which is now valued at over $250m.
CEO Ian Lankshear said: “This is another exciting design win that enhances our growing portfolio of ASICs and further improves the visibility of our recurring revenues from chip supply. This new European customer is highly respected in the industry and has a strong track record of shipping its products in high volume.
“This contract is a testament to the company’s ability to deliver high-quality, reliable solutions that meet the evolving needs of the market, and further demonstrates our team’s commitment to excellence and innovation which continues to drive our success and position EnSilica as a premier European ASIC supplier.”
Last week, EnSilica unveiled another multimillion-pound design and manufacturing services contract with what it described as “a well-funded pioneering optical computing systems company.”
It said the contract “includes substantial design services engagement and additional manufacturing services”.
EnSilica added that the deal stems from its strengthened relationships with key wafer foundry and semiconductor supply chain partners, adding that due to the increased demand, the firm has opened a second design centre in Campinas, São Paulo State, Brazil.
Register for Free
Bookmark your favorite posts, get daily updates, and enjoy an ad-reduced experience.
Already have an account? Log in
