RE: £16m investment by prospective customer15 May 2025 10:48
Guy on X not very clear with a snippet of the extract from previous Trading Update RNS..below the whole extract on ASIC:
‘..Update on Ethernity's strategy and the potential ASIC opportunity
The world of semiconductor innovation is rapidly evolving. At the heart of this transformation lies the surging interest and adoption of application-specific integrated circuit ("ASIC") design services. Across industries, companies are waking up to the competitive benefits of tailored chip designs-driven by the demand for faster, smarter, and more energy-efficient electronic solutions.
ASICs are no longer just for large corporations with significant budgets; they're becoming an essential ingredient for companies of all sizes seeking unique advantages in their markets. Several mega-trends are contributing to the rise in customer demand for highly specialized ASICs, including the need for improved performance, power, energy efficiency, miniaturization and improved integration, together with a reduced total cost of ownership.
As a result, the Company is actively working to transform its operations into a semiconductor business. Ethernity aims to develop an Application-Specific Standard Product ("ASSP") tailored for the global Telecom Access market, leveraging its existing FPGA-based UEP-2025 solution. To support this initiative, the Company is seeking a lead OEM partner to co-fund the ASIC non-recurring engineering (NRE) costs under a partnership arrangement. This arrangement would enable the Company to commercialize the ASSP and offer it to additional vendors across the industry.
The Company is currently in discussions at varying levels of advancement with four leading Western wireless vendors, collectively representing roughly half of the global wireless backhaul market, that have expressed an interest in this ASSP solution, where the aggregate volume from the four vendors could potentially generate a business volume of up to 400,000 units per year.
Whilst no formal agreements have been entered into to date, the Directors consider that Ethernity is making promising progress with one of the wireless vendors. Ethernity estimates that the value to a wireless vendor of Ethernity's existing FPGA based UEP-2025 offering is between $16 million to $25 million compared to developing the ASIC solution from scratch and therefore believes that it can offer significant value to these vendors. Based on valid quotes received from different sources, the Company estimates that the cost of conversion of the UEP-2025 code into an ASIC would be approximately US$16 million, which would need to be co-funded by a partner and Ethernity. Whilst there can be no guarantees that these discussions will lead to signed contracts, the Directors see a clear path toward securing a multi-million-dollar business opportunity as a semiconductor provider, subject to being able to secure the required funding….’
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