Business
$18m 7 Year Design and Supply ASIC Contract
$18m 7 Year Design and Supply ASIC Contract.
About this update from Ensilica Plc
[{"type":"text","content":"\n\nThe information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation.\n \n27 March 2025\n \n EnSilica plc \n(\"EnSilica\", the \"Company\" or the \"Group\") \n \nEnSilica Agrees $18m 7 Year Design and Supply ASIC Contract\n \nOngoing demand continues to underpin EnSilica's chip supply pipeline, now valued at over $250m\n \nEnSilica plc (AIM:ENSI), a leading chip maker of mixed signal ASICs (\"Application Specific Integrated Circuits\"), is pleased to announce that it has been awarded an $18m design and supply contract by a leading European based supplier of electromechanical products for an Arm-based mixed signal sensor interface ASIC to be used across a range of automotive and industrial applications (the \"Contract\").\n \nThe total value of the Contract includes significant Non-Recurring Engineering (\"NRE\") payments and supply revenues, which is estimated to exceed $18m over 7 years, based on quoted NRE fees and forecast production volumes.\n \nEnSilica has been selected due to their significant experience in developing mixed signal design ASICs, alongside a proven track record of bringing automotive and industrial chips to high volume production..\n \nThe Contract will commence in April 2025, with NRE revenues falling into EnSilica's current and next financial years, with supply revenues forecast to commence during 2027. \n \nThis Contract not only reinforces EnSilica's expertise and market pedigree but also materially increases the Company's chip supply pipeline, now valued at over $250m. The chip supply pipeline is the total expected lifetime chip supply revenues that the Company has secured under customer contracts.\n \nIan Lankshear, CEO of EnSilica, commented:\n \n\"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.\n \nThis 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 e...