The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under
the UK Market Abuse
Regulation
25 March 2024
Sondrel (Holdings)
plc
("Sondrel", the "Company" and together with its subsidiaries
the "Group")
Further
re Material Video Processing ASIC design
and supply contract
Sondrel (AIM: SND), a leading provider of ultra-complex chips
for leading global technology brands, is pleased to announce that,
further to the Company's announcement of 27 February 2024, Sondrel
has concluded the negotiations of the exhibits to the material
design and supply contract for a next generation, video processing
chip with a total estimated value of US$23 million across the
design, qualification and projected production life of the
product.
The complex chip is to be used for
high performance, professional video streaming solutions. With the
Company having previously entered into the master agreement with
the customer and design work having already commenced, the
finalisation of the exhibits to agreement are the final step in
concluding agreement between the parties.
The initial contract value is for
over US$9 million for the duration of the design and qualification
phases and the work will be fully funded by the
customer.
Chip production and supply are
anticipated to start in 2026. Subject to successful tape out and
qualification of prototypes, the contract is expected to generate
production revenues of US$14 million over the 10 to 15 year
production lifetime of the product, based on current customer
forecasts.
Graham Curren, Chief Executive Officer of Sondrel,
commented:
"This is a substantial design and supply contract for Sondrel
and a demonstration of the Group's ability to provide the most
complex engineering expertise required for these next generation
technologies. We're delighted to partner with one of the leading
manufacturers in the high growth video streaming market, where the
constant innovation and focus on efficiency is driving demand for
the ultra-complex chips that we specialise in. We look forward to
providing further updates in due course."
For further information:
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Sondrel (Holdings) plc
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Via
Buchanan
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Graham Curren, CEO
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Tel: +44
(0) 20 7466 5000
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Nick Stone, Interim CFO
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Cavendish Capital Markets Limited
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Tel: +44
(0) 20 7220 0500
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Ben Jeynes / Katy Birkin / George
Lawson - Corporate Finance
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Michael Johnson / Charlie Combe -
Sales and ECM
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Buchanan Communications
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Tel: +44
(0) 20 7466 5000
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Chris Lane
Stephanie Whitmore
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sondrel@buchanan.uk.com
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Abby Gilchrist
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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: ir.sondrel.com.