EnSilica wins EUR 2.5m satellite broadband chip contract

(Sharecast News) - Application-specific integrated circuit (ASIC) specialist EnSilica has won a contract valued at €2.5m for its satellite broadband chip, it announced on Wednesday. The AIM-traded firm said the agreement was reached with a leading customer that specialises in user terminals for satellite communication on-the-move (SOTM) applications.

Under the terms of the contract, the customer would obtain early access to the satellite broadband chip, and had placed an order for the first 50,000 units.

Earlier this year, on 17 February, EnSilica announced that it had secured €5m in funding for the developmental stage of the chip.

The funding was provided under the Advanced Research in Telecommunications Systems Core Competitiveness programme - an initiative led by the European Space Agency and supported by the UK Space Agency.

EnSiliica said the satellite broadband chip was designed to facilitate the next wave of low-cost, low-power user terminals for satellite broadband applications.

Such terminals were described as crucial components in low earth orbit satellite systems, where they function to track the relative movement of satellites.

That capability would enable high-capacity internet connectivity in various environments, and for diverse applications.

The chip would find applications ranging from automotive, maritime, and aerospace industries to providing vital connectivity solutions for rural households.

"With the satellite broadband communications market a key growth driver for our business, we are delighted to have a lead customer adopting our innovative semiconductor solution for their next generation of satellite broadband user terminals," said chief executive officer Ian Lankshear.

"Given the high number of chips per antenna, and the millions of users that could adopt these services, the potential growth within this market could be significant for our business across the medium term."

At 1345 BST, shares in EnSilica were up 5.34% at 69p.

Reporting by Josh White for Sharecast.com.