Ethernity in a good position for future growth24 May 2025 18:47
"It is widely acknowledged that the shift from 5G to 6G will demand a radical upgrade of semiconductor technology, circuits, systems, and associated algorithms. For instance, the main semiconductor components involved, in other words the radio frequency amplifiers made from a wonder conductor called Gallium Nitride (GaN), need to be much quicker, emit greater power, and be more reliable."
"Ongoing discussions with the four wireless vendors as the Company pursues its strategic objective to become a semiconductor company, including promising progress with one of the wireless vendors."
"Exiting the creditor settlement arrangement will be a milestone for the Company as it is a critical step towards strengthening the Company's financial position, restoring supplier and partner confidence, and improving overall operational flexibility."
"Based on our ongoing discussions with the four wireless vendors, and given the strong level of engagement and interest, I believe that, subject to securing continued funding support, the Company will be well-positioned to successfully transform its business operations and execute its strategic plan to become a semiconductor company."
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."
The $16M - $18M value figure of a wireless vendor teaming up with Ethernity seems about right given the potential future value of contrasts in a rapidly expanding market and could even turn out to be on the conservative side.
Definite 10plus bagger at current SP levels if discussions with any one of the Western wireless vendors comes to fruition. GLA
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