EnSilica secures $7m order from new customer

15th Jul 2024 11:48

(Sharecast News) - EnSilica, a developer of mixed signal application-specific integrated circuits (ASICs), announced a significant new order valued at $7m from a new customer on Monday.

The AIM-traded firm said the order encompassed the masking and initial wafer supply for an edge artificial intelligence (AI) processing chip, representing the non-recurring engineering (NRE) component.

According to customer forecasts, around $5m of the order's revenue was expected to be realised within EnSilica's current financial year, which began on 1 June.

Additionally, the company projected potential supply revenue exceeding $50m over the first five years of the chip's production.

Beyond the major order, EnSilica said it had also secured over $2m in services and NRE bookings since the start of the current financial year.

"We are pleased to obtain a substantial order from a new customer, which further ratifies our business model and strengthens EnSilica's position as a leading chipmaker," said chief executive officer Ian Lankshear.

"The addition of Edge AI processing will significantly increase the dollar value of the chips that we supply."

At 1159 BST, shares in EnSilica were up 11.24% at 52.84p.

Reporting by Josh White for Sharecast.com.