EnSilica PLC EnSilica awarded initial mandate for telecoms ASIC (6971X)
22 December 2023 - 6:00PM
UK Regulatory
TIDMENSI
RNS Number : 6971X
EnSilica PLC
22 December 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation
22 December 2023
EnSilica plc
("EnSilica", the "Company" or the "Group")
EnSilica awarded initial mandate for a high-end telecoms ASIC
worth in excess of US$35m
EnSilica (AIM: ENSI), a leading chip maker of mixed-signal ASICs
(Application Specific Integrated Circuits), is pleased to announce
that it has entered into an exclusive and binding Letter of Intent
for the development and supply of a high-end ASIC for use in
telecommunications infrastructure (the "Agreement"), with work
commencing next month.
The Agreement has been awarded by an established
telecommunications equipment supplier and provides for the
commencement of the ASIC specification and then design phase of the
project, ahead of a final contract being entered into for the full
design and supply of the ASIC. The initial work funded by
non-recurring engineering ("NRE") fees under the Agreement is set
to commence in January 2024 and will be fully funded by the
customer, with initial ASIC production and supply anticipated to
begin at the end of the calendar year 2026, subject to final
contract.
The final contract is currently expected to be worth in excess
of an estimated US$35 million over a ten-year period (including
initial work undertaken pursuant to the Agreement), based on quoted
NRE fees and the customer's minimum projected production
volumes.
The Agreement outlines the key commercial terms of a final
contract, including the budgetary NRE fees and volume production
pricing for the ASIC. Both parties have a break option under the
Agreement if the final terms of the contract are not agreed,
however, the principal terms are defined in the Agreement and
EnSilica will be paid to commence work next month.
EnSilica's extensive experience in developing high-performance
Radio Frequency ("RF") and complex digital systems, as well as its
strong supply chain management capabilities, are key factors in
EnSilica being selected as the ASIC partner for this project.
This Agreement reinforces EnSilica's standing as a leading
European ASIC supplier, showcasing the Company's continued
commitment to innovation and excellence in the high growth
semiconductor sector.
The Agreement is one of the potential contracts that was
referred to in the Company's announcement on 14 December 2023.
Ian Lankshear, Chief Executive Officer of EnSilica,
commented:
"As the demand for higher data rates surges and network
operators strive to enhance the power efficiency of their systems,
ASICs are key components for the next generation of terrestrial and
satellite telecommunication equipment. The imperative for a secure
supply chain is prompting equipment manufacturers to commission
ASICs, ensuring business resilience and bolstering their
competitiveness. EnSilica's expertise in RF and digital
technologies, alongside our strong supply chain management
capabilities, positions us as an ideal partner for such
projects.
"This design and supply project is the first step in what we
hope will be a long and mutually beneficial partnership,
underscoring our commitment to ongoing collaboration and innovation
in cutting-edge communication technology."
For further information please contact:
EnSilica plc via Vigo Consulting
Ian Lankshear, Chief Executive Officer +44 (0)20 7390 0233
www.ensilica.com
Allenby Capital Limited, Nominated Adviser +44 (0)20 3328 5656
& Broker info@allenbycapital.com
Jeremy Porter / Vivek Bhardwaj (Corporate
Finance)
Joscelin Pinnington / Tony Quirke (Sales
& Corporate Broking)
Vigo Consulting (Investor & Financial Public +44 (0)20 7390 0233
Relations) ensilica @vigoconsulting.com
Jeremy Garcia / Kendall Hill
About EnSilica
EnSilica is a leading fabless design house focused on custom
ASIC design and supply for OEMs and system houses, as well as IC
design services for companies with their own design teams. The
company has world-class expertise in supplying custom RF, mmWave,
mixed signal and digital ICs to its international customers in the
automotive, industrial, healthcare and communications markets. The
company also offers a broad portfolio of core IP covering
cryptography, radar, and communications systems. EnSilica has a
track record in delivering high quality solutions to demanding
industry standards. The company is headquartered near Oxford, UK
and has design centres across the UK and in Bangalore, India and
Porto Alegre, Brazil.
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