EnSilica PLC announced on Monday that it had signed a ‘significant’ design and supply contract with a European telecommunications equipment provider.

The Oxfordshire, England-based company is a chip maker of mixed signal application specific integrated circuits, or ASICs. EnSilica finalised the preliminary terms of a contract announced on December 22, 2023 that will facilitate the design and exclusive supply of ASICs for an unnamed client’s telecommunication infrastructure products.

The deal is valued at more than $30 million over a 10-year period.

The non-recurring engineering activities began in January 2024 with an initial specification phase. This has recently progressed to the main design phase. The fees involved in these activities are expected to ‘significantly contribute’ to EnSilica’s revenue in its current financial year.

The production and supply phase of the ASICs is expected to commence in 2027.

Chief Executive Officer Ian Lankshear said: ‘This significant contract marks the beginning of what we hope will be a long-term and mutually beneficial partnership with a key telecoms client. As the demand for even higher data rates and the push for more power-efficient systems increases at pace, ASICs are becoming essential for the next generation of terrestrial and satellite telecommunications equipment.’

EnSilica shares were up 9.3% to 45.90 pence each in London on Monday afternoon.

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