Shares in EnSilica PLC (AIM:ENSI) gained 7% on Friday morning after the firm unveiled a US$35 million deal to develop computer circuits for an established telecoms company.
This will see EnSilica supply high-end application specific integrated circuits (ASICs) to an established telecommunications equipment supplier over a 10-year period.
“As the demand for higher data rates surges and network operators strive to enhance the power efficiency of their systems, ASICs are key components for the next generation of terrestrial and satellite telecommunication equipment,” EnSilica boss Ian Lankshear said.
"This design and supply project is the first step in what we hope will be a long and mutually beneficial partnership.”
Production will begin next month funded by the customer, alongside intial payments of the contract, which is expected to be worth over US$35 million, EnSilica said.
Shares climbed 7.20% to 40.20p.