RE: Another week.....28 Feb 2026 03:57
This one I reckon.
Potential ASIC business
As previously announced, the Company has been engaged in discussions with two Tier-1 wireless
backhaul OEMs with regard to evolving Ethernity’s FPGA technology and solution to an ASIC and these
discussions are still progressing.
One OEM has been testing the Ethernity universal edge platform (“UEP”) during the year and the other
OEM, that is familiar with Ethernity’s technology from a previous engagement, has expressed an
interest in co-funding the development of the ASIC, with a view to providing volume orders for the ASIC
for a period of five years once it became available.
The Company is in meaningful discussions with several well-established Tier-1 third-party ASIC
vendors that have expressed their interest in development of the ASIC and, should it commence, the
Company plans to select one of them. This ASIC vendor would undertake the ASIC design work based
on the Company’s existing UEP product and semiconductor data processing technology that is
available today on the UEP FPGA SoC.
The Company estimates that the overall non-recurring engineering (“NRE”) amount for the ASIC would
be in the range of $15m-$17m, including ASIC design, contribution to Ethernity and the associated IP,
which would need to be funded by the prospective customers and be accompanied by minimum
purchase commitments for the finished product.