EnSilica (LON:ENSI) – don’t say I didn’t tell you!

02.07.2025

The shares of this leading chip maker touched 44p ten days after my feature on the £36m-capitalised company – that broke through my 43p Target Price set on Monday 2^nd June when the shares were just 34.50p – a healthy 27.5% gain in that period.

Since then, the group has announced that first royalty payments had been triggered and an extended royalty agreement had been signed with an existing satellite service provider customer – worth some $28m.

EnSilica is a leading fabless design house focused on custom chip design and supply for OEMs and system houses, as well as design services for companies.

It provides custom RF, mmWave, mixed signal, and digital silicon chips to international customers in the automotive, industrial, healthcare, and communications markets.

The company, which has a track record in delivering high-quality solutions to demanding industry standards, also offers a broad portfolio of core IP covering cryptography, radar, and communications systems.

Based near Oxford, the company has design centres across the UK and in Bangalore, India and Porto Alegre, Brazil.

At the time of announcing the Contract Update, CEO Ian Lankshear stated that:

"We are very pleased to reach this milestone, which is the result of over three years of meticulous research, development and testing, and I'm incredibly proud of what our team has done to get to this stage.

EnSilica now has five chips in the supply phase generating recurring revenues and twelve in the design phase, which represents a significant financial milestone for the Company and underpinning our ongoing confidence in the business across the short and long term."

That was certainly good news, however the group’s shares have subsequently succumbed to investors ‘top-slicing’ with the shares falling back to 35.50p.

However, take it from me that they will not stay at around these levels for very much longer.

Yesterday’s news was well worth noting – that Panmure Liberum has just been appointed Joint Broker with Allenby Capital.

I now believe that my Target Price is about to be beaten again and then some, especially if the group declares some new contract news with overseas players.

(Profile 02.06.25 @ 34.50p set a Target Price of 43p*)