RCS - EnSilica PLC - Investment in Space Industry Fuelling Chip Demand

EnSilicaAnnouncement

14/04/2025 07:00

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RNS Number : 7687E  EnSilica PLC  14 April 2025

Reach announcement*

 

14 April 2025

EnSilica plc

("EnSilica", the "Company" or the "Group")

 

Ongoing Investment in Space Industry Fuelling Silicon 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  (#_ftn1) )).

 

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  (#_ftn2) .

 

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/
(https://www.allenbycapital.com/client/ensilica-plc/) .

 

 

For further information please contact:

 

 EnSilica plc                                                        via Vigo Consulting

 Ian Lankshear, Chief Executive Officer                              +44 (0)20 7390 0233

 Kristoff Rademan, Chief Financial Officer

 www.ensilica.com (http://www.ensilica.com/)

 Allenby Capital Limited, Nominated Adviser & Joint Broker           +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)                  info@allenbycapital.com (mailto:info@allenbycapital.com)

 Joscelin Pinnington / Tony Quirke (Sales & Corporate Broking)

 Singer Capital Markets, Joint Broker

 Rick Thompson / Asha Chotai                                         +44 (0)20 7496 3000

 Vigo Consulting (Investor & Financial Public Relations)             +44 (0)20 7390 0233 ensilica@vigoconsulting.com

                                                                   (mailto:visum@vigoconsulting.com)
 Jeremy Garcia / Kendall Hill / Anna Stacey

 

About EnSilica

 

EnSilica is a leading fabless design house focused on custom ASIC design and
supply for OEMs and system houses, as well as IC design services for companies
with their own design teams. The company has world-class expertise in
supplying custom RF, mmWave, mixed signal and digital ICs to its international
customers in the automotive, industrial, healthcare and communications
markets. The company also offers a broad portfolio of core IP covering
cryptography, radar, and communications systems. EnSilica has a track record
in delivering high quality solutions to demanding industry standards. The
company is headquartered near Oxford, UK and has design centres across the UK
and in Bangalore, India and Porto Alegre, Brazil.

 

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 1  (#_ftnref1) Business Research Insights, LEO Satellite Market Report
overview, March 2025

 2  (#_ftnref2)
https://growthmarketreports.com/report/satellite-communication-terminal-market-global-industry-analysis
(https://growthmarketreports.com/report/satellite-communication-terminal-market-global-industry-analysis)

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