Shares in AIM-listed specialist chipmaker EnSilica (ENSI) hit a three-year high after the firm announced two new contracts. The company has signed ‘landmark’ contracts to develop new chips for next-generation satellites for a leading European operator.
Largest ever contracts
The contracts cover satellite payload and user terminals incorporating ASIC (Application Specific Integrated Circuits) and ASSP (Application Specific Standard Part) technology.
EnSilica’s ability to deliver both solutions was key to securing the contracts, which are the largest to date. Based on just the user terminal elements, the order could be worth over $30 million from 2030.
The firm will receive initial one-off engineering revenue of $6.8 million from FY26 to FY28. This revenue should unlock a further $3 million of matched funding from the UK Space Agency.
According to the company, the customer is a leading European satellite operator. Its next-generation system will support commercial, government and defence requirements with initial services targeted towards the end of the decade.
EnSilica hadn’t been on our radar until today, which is a shame as the shares have had a good run since last December. Today’s news cements the company as a key beneficiary of the sharp increase in demand for satellite capability.
Space as an investment theme is clearly gaining popularity with investors, not least due to the upcoming SpaceX IPO. With only a small number of shares on offer, however, savvy retail investors are looking to gain exposure where they can.
Read the press release here: https://www.ensilica.com/investors/
