EnSilica, a renowned chip maker, has announced that it has been awarded a sensor application-specific integrated circuits supply contract for the e-mobility market. This contract, valued at over $7 million, is set to span a period of five years.
The news of this significant contract has had a positive impact on EnSilica's shares, which surged by 12% on Wednesday. At 1133 GMT, the shares were up by 7.0 pence or 10.5% at 73.50 pence, with a peak of 74.72 pence earlier in the session.
EnSilica expects to complete most of the non-recurring engineering design portion of the contract within the current financial year. Additionally, the customer will fully fund this phase. The company plans to commence production, manufacturing, and supply activities for this contract in the middle of 2025, with a projected duration of at least five years.
Considering that the technological requirements in the e-mobility market are similar to those in the automotive sector, Chief Executive Ian Lankshear expressed confidence in EnSilica's ability to leverage their proven expertise in the automotive field to extend their market reach.
In conclusion, this significant supply contract highlights EnSilica's strong position in the e-mobility market and sets the company on a path for further growth and success.