REG - Sondrel (Holdings) - Further re Material ASIC contract

Sondrel (Holdings)Announcement

25/03/2024 07:00

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RNS Number : 0406I  Sondrel (Holdings) plc  25 March 2024

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation

 

25  March  2024

Sondrel (Holdings) plc

("Sondrel", the "Company" and together with its subsidiaries the "Group")

 

Further re Material Video Processing ASIC design and supply contract

 Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading
global technology brands, is pleased to announce that, further to the
Company's announcement of 27 February 2024, Sondrel has concluded the
negotiations of the exhibits to the material design and supply contract for a
next generation, video processing chip with a total estimated value of US$23
million across the design, qualification and projected production life of the
product.

The complex chip is to be used for high performance, professional video
streaming solutions. With the Company having previously entered into the
master agreement with the customer and design work having already commenced,
the finalisation of the exhibits to agreement are the final step in concluding
agreement between the parties.

The initial contract value is for over US$9 million for the duration of the
design and qualification phases and the work will be fully funded by the
customer.

Chip production and supply are anticipated to start in 2026. Subject to
successful tape out and qualification of prototypes, the contract is expected
to generate production revenues of US$14 million over the 10 to 15 year
production lifetime of the product, based on current customer forecasts.

 

Graham Curren, Chief Executive Officer of Sondrel, commented:

 

"This is a substantial design and supply contract for Sondrel and a
demonstration of the Group's ability to provide the most complex engineering
expertise required for these next generation technologies. We're delighted to
partner with one of the leading manufacturers in the high growth video
streaming market, where the constant innovation and focus on efficiency is
driving demand for the ultra-complex chips that we specialise in. We look
forward to providing further updates in due course."

 

 

For further information:

 

 Sondrel (Holdings) plc                                        Via Buchanan
 Graham Curren, CEO                                            Tel: +44 (0) 20 7466 5000
 Nick Stone, Interim CFO

 Cavendish Capital Markets Limited                             Tel: +44 (0) 20 7220 0500
 Ben Jeynes / Katy Birkin / George Lawson - Corporate Finance
 Michael Johnson / Charlie Combe - Sales and ECM

 Buchanan Communications                                       Tel: +44 (0) 20 7466 5000
 Chris Lane                                                    sondrel@buchanan.uk.com (mailto:sondrel@buchanan.uk.com)

 Stephanie Whitmore
 Abby Gilchrist

 

About Sondrel

Sondrel is a UK-based fabless semiconductor company specialising in high end,
complex digital Application Specific Integrated Circuits (ASICs) and System on
Chips (SOCs). It provides a full turnkey service in the design, prototyping,
testing, packaging and production of ASICs and SoCs.

 

The Company is one of only a few companies capable of designing and supplying
the higher-spec chips built on the most advanced semiconductor technologies,
selling into a range of hyper growth end markets such as high-performance
computing, automotive, artificial intelligence, VR/AR, video analytics, image
processing, mobile networking and data centres.  Sondrel designs have enabled
products by leading technology brands including Apple (iPhone), Sony
(PlayStation), Meta's (Oculus), Samsung, Google and Sony smartphones, JVC
(prosumer camcorders), Tesla and Mercedes-Benz cars.

 

Sondrel is well-established, with a 20-year track record of successful
delivery, supported by long standing ecosystem partnerships including Arm,
TSMC and Samsung. Headquartered in the UK, Sondrel has a global presence with
offices in UK, USA, China, India and Morocco.

 

For more information please visit: ir.sondrel.com (https://ir.sondrel.com/) .

 

 

 

 

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