SND.L Regulatory News (SND)

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

9 January 2023

Sondrel (Holdings) plc

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

Successful Key Milestone Completion - Existing Edge AI ASIC project

Sondrel (Holdings) plc (AIM: SND), the fabless semiconductor business providing turnkey services in the design and delivery of 'application specific integrated circuits' ("ASICs") and 'system on chips' ("SoCs") for leading global technology brands, is pleased to announce that it has successfully taped out an ASIC design (the "Project") for a leading provider of Edge AI Hardware Accelerator solutions.

With the design phase of the Project completed and its tapeout confirmed, the Company will now progress with the new product introduction and prototyping phases of the turnkey supply services being provided to the customer, ahead of the product being released to production thereafter.

Based on production volumes and lifetime currently projected by the customer, revenues for Sondrel associated with the production and supply of the manufactured Project ASIC would be worth in excess of US$20million to the Company over three years.

The Project design contract was awarded to the Company in late 2021 and was fully funded by the customer. Project production and supply are expected to begin at the end of calendar year 2023.

Tapeout signals completion of the design phase of an ASIC and the handover of all data to the silicon foundry which is contracted to manufacture the ASIC. This tapeout data is used to initiate the generation of photomasks by the foundry which are then used to produce prototype silicon wafers. These wafers are then packaged and tested before delivery to the customer for prototype assessment. Upon approval of the prototypes, further samples undergo qualification and reliability testing before the product is released to production. 

Graham Curren, Chief Executive Officer of Sondrel, commented:

"Passing this key milestone underpins Sondrel's position as a leading ASIC supplier for advanced designs. The successful tapeout of this ASIC project is a great achievement for Sondrel and our team, with our focused business strategy and our track record of innovation excellence again delivering outstanding results for our customers.

"This complex design was completed in twelve months and will open up new markets for our customer with its flexible, efficient and affordable approach to Edge AI acceleration. Sondrel looks forward to continuing to support the customer during new product introduction, prototyping and throughout the supply lifetime of the Project ASIC."

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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: www.ir.sondrel.com.