EnSilica has secured a seven-year manufacturing and supply contract with a German automotive components maker, in a deal expected to generate around $75m in revenue over its lifetime.
Today’s deal follows other major wins for the company in the space industry.
The AIM-listed fabless chipmaker won the contract announced today through a competitive tender to produce an ARM-based sensing chip, which is already in production. Because the chip is already in production, no design or tape-out work is required, meaning EnSilica steps straight into the manufacturing and supply role.
Around $4m of revenue is expected to flow through in the financial year ending 31 May 2027, with the gross margin reflecting the manufacturing-only nature of the work.
Ian Lankshear, CEO of EnSilica, said: “We are pleased to have secured this Contract, which will not only generate material future revenues but is expected to also deliver significant strategic benefits for EnSilica.
The Contract opens up a connection to a Tier 1 German automotive supply chain, increases wafer volume shipments through our partner foundries – reinforcing our position as a key customer – and it secures the VDA-aligned automotive quality standard required to operate within the German automotive sector.
It also places EnSilica in a stronger position to secure future higher-margin ASIC design opportunities in this important market.”