EnSilica PLC (AIM:ENSI) shares climbed, rising around 12% to 74.45p, after it secured two chip development contracts with a leading European satellite operator, handing the AIM-listed designer its biggest long-term potential supply opportunity to date and opening the door to more than US$50 million of revenue from 2030 from the user terminal side alone.
The contracts cover both satellite payload and user terminal silicon, combining ASIC and ASSP solutions for the operator’s next-generation communications network.
EnSilica said the initial engineering phase will deliver US$6.8 million in non-recurring engineering revenue from FY2026 to FY2028, with potential access to a further US$3 million of matched funding from the UK Space Agency.
The payload part of the programme has already passed a study phase and moved into funded development, although future supply revenues for that chip have yet to be agreed.
The customer is developing a network aimed at improving resilience, flexibility and coverage across commercial, government and defence uses, with initial services targeted for the end of the decade.
Chief executive Ian Lankshear said the award provided “significant industry validation” and offered “attractive short-term NRE revenues with the potential for substantial long-term supply revenues”. The programme is due to progress through phased development over the next two and a half years.