EnSilica is expanding its role across the EU space sector with a new contract to develop satellite chips for advanced communications infrastructure.
The 10-month project will focus on developing system architecture, advanced signal processing algorithms and a working demonstrator, as part of the second phase of a satellite communications application-specific integrated circuit (ASIC) programme for a leading European satellite manufacturer.
EnSilica aims to strengthen relationships with the European industry through this contract, as well as deepen technical capabilites.
Making connections in the 5G network
Alongside the contract award, EnSilica has joined the European 5G-aNTeNna consortium, which is developing user terminal technology for the European Union’s IRIS² satellite constellation.
As part of the project, the company will provide application-specific standard products (ASSPs) for satellite user terminals, expanding its presence beyond satellite payload technology into the ground segment of Europe’s sovereign satellite communications network. The initiative also positions EnSilica to benefit from the emerging 5G non-terrestrial network (5G-NTN) market.
“EnSilica’s involvement in the 5G-aNTeNna consortium is a natural extension of our work in satellite communications silicon and of our collaboration with other European partners,” said Ian Lankshear, Chief Executive Officer of EnSilica.
“As satellite networks move towards wider deployment of 5G-NTN services, compact, electronically steerable user terminals will be critical, and our focus is on enabling the semiconductor technologies that make these systems practical and manufacturable for high-volume use,” he added.
Financial challenges cast a shadow over the satellite chip news
Although securing strategically important contracts imply the industry has confidence in EnSilica, the company’s financial outlook is less inspiring. Declining revenue, ongoing losses and weaker free cash flow have all been reported.
Overconfidence in stock poses a risk of short-term volatility and valuation remains difficult due to the absence of dividends and speculated losses. However, technical indicators have markedly improved in recent months, suggesting stronger share price momentum.
