Investment in Space Industry Fuelling Chip Demand

• Geopolitical instability underpinning investment in space-based defence technology
• EnSilica creating a strong foothold across satellite communications market

EnSilica, a leading chip maker of mixed signal ASICs (Application Specific Integrated Circuits), provides an overview of the growing importance of silicon chips in the space market and the opportunities that exist to further increase the Company's footprint in this market.

Silicon chips are key components of Low Earth Orbit ("LEO") satellites which are being deployed by SpaceX, OneWeb, AST Space Mobile ("AST") and other operators to deliver high-speed, undisrupted connectivity for defence, governments, and transportation, as well as resilient household broadband. ASICs optimise the performance of LEO satellites, minimising power consumption as well as the weight of complex electronics. The global LEO satellite market size was $5.43bn in 2024 and is forecast to reach $31.2bn by 2033, representing a compound annual growth rate of 21.4%[1].

EnSilica has both Ka-band and Ku-band beamformer chips for deployment in ground-based user terminals that receive signals from LEO, Medium Earth Orbit, and Geostationary Earth Orbit satellite constellations. The Ka and Ku bands are the main frequency bands used for broadband satellite connectivity. Each user terminal requires hundreds of unique, specialist chips capable of tracking and connecting to the satellites. The market potential for satellite user terminals is growing rapidly, as demonstrated by SpaceX's Starlink which now has over 6 million subscribers, with the total market for user terminals projected to reach c. US$16.5bn by 2031[2].

EnSilica's Key Space Sector Contract Wins To Date

EnSilica's design, supply and consultancy expertise in chips purpose-built for space technology has been leveraged for satellite payloads, ground terminals and positioning receivers. A selection of EnSilica's key work is outlined in detail below:

• 2019/2023 - vehicle satellite connectivity. In 2019, EnSilica was awarded €2.2m from the European Space Agency ("ESA") and then a further €5m in 2023 for the design of two ASICs for vehicle-based satellite user terminals. A lead customer has been signed and an initial contract for €2.3m was won in August 2023. EnSilica retains all the intellectual property ("IP") associated with this funding and hence EnSilica expects further revenue potential from both the lead customer and new contract wins.
• 2021 - AST. In 2021, EnSilica was selected to design a next generation ASIC for use in Nasdaq listed AST's LEO satellites. AST is currently manufacturing 40 satellites that will be launched in 2025/2026.
• 2025 - £10.4m user terminal funding from the UK Space Agency ("UKSA"). In February 2025, EnSilica was awarded £10.4m of matched funding over the next three years from the UKSA. The funds will increase EnSilica's competitiveness as a global supplier of semiconductor chips used to connect ground-based user terminals with LEO satellites. EnSilica is in discussions with several potential lead customers.
• 2025 - €2.1m ESA Navigation Satellite System funding. The funding from the ESA is for developing a key component for high-end Global Navigation Satellite System ("GNSS") receivers chips as part of its Navigation Innovation and Support Programme ("NAVISP"), Element 2. These receivers are used to provide precise geographical position and timing via satellite constellations such as the US owned Global Positioning System or the EU's Galileo satellite system.
• 2025 - Memorandum of Understanding ("MoU") with major European satellite operator. In April 2025, EnSilica announced that it has been tasked by a leading European satellite operator to develop a specialist chip for a communications satellite payload, which will include a feasibility study. This custom chip is intended to provide key differentiation to the satellite operator's services, enhancing its market offering.

Ian Lankshear, CEO of EnSilica, commented:

"The space industry has for some time now been a crucial sector for EnSilica, and we remain encouraged by the market's rapid growth and the exciting commercial opportunities its evolution continues to generate. From user terminals to LEO payloads and GNSS receivers, our specialist chips will be instrumental in a range of pioneering projects set to transform global connectivity and positioning for a multitude of critical applications.

Governments around the world are seeking to grow their space presence, recognising the vital role satellite communications can play in bolstering national security and enhancing defence capabilities. EnSilica is heavily involved in projects aimed at safeguarding the world's critical infrastructure and creating a diverse space landscape - helping ensure that there are multiple alternative solutions with greater sovereign control and assurance of services.

This continued investment in the space industry underpins our belief that demand for our sophisticated, ASICs will increase over time, with our advanced technology well equipped to optimise the performance of both communications satellites in orbit and user terminals on the ground."

Allenby Capital, EnSilica's broker and adviser, has published a comprehensive research note providing further information on EnSilica's activity, expertise and opportunities in the space industry, which is available on Allenby Capital's website at https://www.allenbycapital.com/client/ensilica-plc/.