$75m Contract Win
EnSilica plc has secured a significant 7-year manufacturing and supply contract with a German automotive component manufacturer for an Arm-based sensing chip, expected to generate approximately $75 million in revenue over its term. The contract, which requires no further design work as the chip is already in production, is projected to contribute around $4 million in revenue for the financial year ending May 31, 2027, with margins reflecting the manufacturing-only nature of the agreement. This win, achieved through a competitive tender, highlights EnSilica's growing automotive expertise and its ability to deliver chip production at scale, while also providing strategic benefits such as access to the German automotive supply chain and reinforcing its position with foundry partners.
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EnSilica plc (AIM: ENSI), a leading fabless microchip maker with a growing portfolio of reusable IP, serving the Space & Comms, Industrial, Automotive and Healthcare markets, is pleased to announce a new 7 year manufacturing and supply contract to produce an Arm based sensing chip for a German manufacturer of automotive components (the "Contract").
EnSilica was awarded the Contract after completing a competitive tender process. As the chip is already in production, no design or tape-out is required. EnSilica will now be responsible for the manufacturing and supply of the chip to the customer.
The Contract is expected to generate around $75 million in revenue over seven years, with approximately $4 million of revenue expected in the financial year ending 31 May 2027, with a gross margin reflecting the manufacturing-only nature of the Contract.
EnSilica was selected over a number of competing suppliers, reflecting the Company's growing expertise in the automotive sector and track record of delivering chip production at scale.
Ian Lankshear, CEO of EnSilica, commented:
"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."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.