28th Feb 2024 10:40
(Alliance News) - EnSilica PLC shares rose on Wednesday, after the company said it had secured a "significant" order worth USD20 million from a US-based client.
Shares in the Oxfordshire, England-based semiconductor designer were up 11% to 67.96 pence each in London on Wednesday morning.
The order is for the tape-out of a custom ASIC from an unnamed "major electronics manufacturer" headquartered in the US, EnSilica said, and will bring in around USD20 million in revenue over 2025 and 2026.
The tape-out process will see the ASIC design finalised, before being sent to the foundry for fabrication.
It noted that the win is the first order from the US for manufacturing-only services utilising EnSilica's new silicon foundry channel partner.
EnSilica said it is now actively pursuing similar orders, and believes that the US "represents a sizable growth market for the company". If similar orders are secured, this could help strengthen EnSilica's position within the global semiconductor supply chain, the company added.
"We are delighted to announce this supply win from the US, which reinforces our position as a quality focused supply partner for customers and further strengthens our foundry partnerships in the US," said Chief Executive Ian Lankshear.
"The US now represents a sizable growth opportunity for the group, and we believe the award of this contract has the potential to generate further business, thereby bolstering our near-term revenue growth and cash-generation."
By Sophie Rose, Alliance News senior reporter
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