EnSilica shares jumped on Monday after the group announced a UK Space Agency contract win.
EnSilica, the British chip manufacturing specialist, has been awarded a substantial £10.38 million contract from the UK Space Agency to develop next-generation semiconductor chips for satellite broadband equipment.
EnSilica, which specialises in mixed signal ASICs (Application Specific Integrated Circuits), will focus on creating semiconductor chips for mass-market satellite broadband user terminals.
These terminals will be designed to interface with various satellite networks, including OneWeb and the European Union’s planned IRIS2 multi-orbit constellation.
The market for user terminals is projected to reach US$16.5 billion by 2031, and investors will be delighted that EnSilica is positioning itself early in the growth cycle.
Modern satellite terminals require hundreds of specialised chips to operate their electronically steerable antennae, highlighting the significant commercial potential of this project.
The funding has been allocated through the UK Space Agency’s Connectivity in Low Earth Orbit (C-LEO) programme, which maintains a total funding pool of £160 million over four years.
The programme aims to strengthen Britain’s position in the competitive global market for Low Earth Orbit satellite constellations by supporting the development of advanced satellite technology and hardware.
After a poor 2024 for EnSilica shares, investors will hope the relationship with the UK Space Agency develops over time.
EnSilica shares were 8% at the time of writing.