Zak Mir talks to Ian Lankshear, CEO of EnSilica (AIM: ENSI), about the leading fabless microchipmaker, which has announced that it has entered into two landmark development contracts with a leading European satellite operator to develop two chips for its next-generation satellite network.
EnSilica has been a listed company for 4 years, and after a period of steady groundwork, the business now appears to be entering a far more commercially significant phase. The key reason is simple: space communications is no longer a futuristic sideshow. It is becoming strategic infrastructure, and specialist chip design sits right at its heart.
That shift was underscored by EnSilica’s recent announcement that it has secured two landmark development contracts with a leading European satellite operator. The work covers two chips for a next-generation satellite network: one for the satellite’s payload and one for the user terminal on the ground.
For a fabless semiconductor company, that is not just another contract win. It is the kind of milestone that can validate years of technical investment and establish a company as a serious supplier into a rapidly expanding global market.
Why 2026 could be a turning point for EnSilica
After four years on the market, EnSilica is now seeing several strands come together at once. The company has spent years building capability in semiconductor design, particularly in communications and high-performance, low-power applications. What is changing now is that the market is finally demanding exactly the kind of technology it has been developing.
The standout development is in the space sector. EnSilica has previously announced smaller wins, feasibility studies and early-stage projects, including work with AST SpaceMobile. But this latest contract with a European satellite operator looks more substantial. It signals that EnSilica is no longer simply participating in the sector. It is beginning to establish itself as a meaningful supplier within it.
The commercial logic is compelling. Satellite systems need chips that are:
- Extremely low power
- Very high performance
- Cost-efficient for large-scale deployment
- Suitable for both space payloads and ground terminals
Those requirements are technically demanding, which is precisely why they can create attractive opportunities for specialist chip designers with the right expertise and intellectual property.
What EnSilica is actually building for satellite networks
The recent contract win covers two different parts of a satellite communications system.
1. The satellite payload chip
This is the electronics that goes into the satellite itself. In practical terms, the payload handles the communications function in orbit. Performance matters enormously here, but so does power efficiency. Space hardware has to do more with less, and every design decision carries weight in cost, reliability and performance.
2. The ground user terminal chip
This is the chip that goes into the terminal used by customers to connect to the satellite network. These terminals need to be:
- Low cost
- Low power
- High performance
- Scalable for broader commercial adoption
That combination is especially important because satellite communications only becomes truly mass-market when the equipment on the ground is affordable and practical. It is one thing to launch a constellation. It is another to build an ecosystem that people and organisations can actually use at scale.
Why the space opportunity is bigger than moon missions
When people talk about space, the public imagination often jumps to lunar missions and human exploration. But the real commercial excitement here is much more grounded. It is about communications, resilience and strategic independence.
The success of Starlink has changed perceptions dramatically. Satellite broadband is no longer theoretical. It has become a proven tool for resilient connectivity in a wide range of scenarios, including:
- Emergency communications after storms or disasters
- Backup connectivity when terrestrial mobile towers fail
- Defence and security applications
- Remote and mobile communications where traditional networks are weak or unavailable
That matters because governments, operators and regions increasingly recognise that they do not want to depend on a single network provider for such an important capability. The result is a wave of new constellations and next-generation satellite platforms.
This is the backdrop against which EnSilica’s latest contract should be understood. The story is not about glamour. It is about infrastructure.
The satellite race is broadening fast
Starlink may be the best-known name in the sector, but it is far from the only player. A number of major operators and programmes are investing heavily in satellite communications capacity.
Among the names highlighted in discussion around the market are:
- Amazon
- OneWeb, now part of Eutelsat
- SES
- IRIS², the European Union’s satellite initiative
- AST SpaceMobile
The important point is not which one wins outright. It is that multiple constellations are being planned, deployed or expanded. That creates a broader addressable market for specialised chip suppliers.
And behind every constellation is a stack of semiconductor challenges. Better payload performance, lower terminal cost, lower power consumption, higher data throughput and more efficient system integration all depend on chip design.
The business model: fabless semiconductor, built for scale
EnSilica operates using the fabless semiconductor model. That means it designs chips and manages key parts of development and production flow, while manufacturing is handled by specialist foundries such as TSMC and GlobalFoundries. Assembly and test are managed in-house.
This matters because the fabless model has already proved itself as a route to scale in semiconductors. It is the same broad model used by major international names such as Nvidia and Marvell, and it has also underpinned the growth of well-known British chip companies including:
- Dialog Semiconductor
- Wolfson Microelectronics
- Cambridge Silicon Radio
In other words, the playbook is not speculative. It is well established. The challenge is execution.
And that is where EnSilica’s management believes it has an edge. The company has been designing chips for roughly 25 years. That experience matters in semiconductors, where technical know-how, customer trust and specialised IP are built over long periods, not overnight.
What makes EnSilica’s position defensible
In a market dominated by much larger US-listed chip businesses, a natural question is whether a smaller UK company can really carve out a durable place for itself.
The answer appears to rest on specialisation.
Rather than trying to compete head-on across every category, EnSilica is focused on building differentiated technology in carefully chosen niches. The space sector is a good example. The company has been working in that area since 2018, steadily developing know-how and intellectual property that can now be commercialised more meaningfully as the market matures.
That long lead time is worth noting. Contracts may be announced in a headline-grabbing moment, but capability in this area is the result of years of engineering investment. By the time a supplier is selected for a mission-critical chip role, much of the real work has already been done in the background.
The significance of the $50 million opportunity from 2030
One of the eye-catching elements of the recent announcement was the statement that the contracts could be worth more than $50 million from 2030.
That wording is important for two reasons.
Long development cycles are normal
In semiconductors, and especially in aerospace and satellite applications, there can be a considerable gap between development work and full revenue realisation. Design, qualification, integration and deployment all take time.
So a contract that points to revenue from 2030 is not a sign of delay. It is simply a reflection of the industry’s timescales.
It suggests platform-level potential
If a chip design is adopted into a next-generation network, the commercial impact can extend over years of production and deployment. That is one reason development wins can matter so much. A successful design slot can lead to long-term, repeatable revenue streams rather than one-off project fees.
For EnSilica, this latest European satellite operator relationship may therefore be significant not only for its headline value, but for the strategic footing it provides in future programmes.
Beyond Europe: where international growth could come from
Although the latest customer is European, the market opportunity is clearly international.
EnSilica sees potential across:
- Europe
- The United States
- India
China was effectively ruled out as a practical target in this context, but the broader point remains. Satellite operators are not confined to one geography. Even if a constellation is developed by a regional operator, the service footprint and commercial applications often extend across multiple parts of the world.
That makes satellite communications a naturally international business. A satellite may serve one operator’s priority zone, but it does not exist in a purely local market. Connectivity, service partnerships and downstream applications tend to have global implications.
EnSilica already has proof points outside Europe, notably AST SpaceMobile in the US, which supports the idea that its technology can travel well across jurisdictions and customer bases.
How small EnSilica is relative to the industry, and why that matters
There is a stark contrast between EnSilica’s current market value and the scale of major semiconductor peers. Marvell, for example, was cited as having a market capitalisation of around $143 billion, while EnSilica was referenced at roughly £75 million.
That gap can be looked at in two ways.
One interpretation is that EnSilica is tiny in a fiercely competitive market. The other is that, if its technology is genuinely differentiated and its commercial execution improves, the upside from a low base could be substantial.
Management’s view is clearly aligned with the second interpretation. The company believes its technology base and market position are not fully reflected in its valuation, particularly given the quality of the niches it is addressing and the potential scalability of its model.
Could EnSilica become an acquisition target?
Whenever a smaller semiconductor company develops valuable IP in a strategic market, the question of takeover interest naturally arises.
EnSilica’s response on that point was measured but revealing. The company believes it is undervalued from a technology standpoint and is not looking to sell at this stage. The emphasis remains on building the business, scaling revenue and improving profitability through the existing model.
At the same time, there was an acknowledgement that the company’s capabilities could make it attractive, whether to customers or larger industry players. That is hardly surprising. In semiconductors, unique know-how in a fast-growing niche can quickly attract attention.
Still, the clear message is that management is focused on growth rather than an early exit.
Other market signals worth noting
There were also references to two additional developments around the company that help frame the broader picture:
- A new substantial shareholder, suggesting growing external interest
- Cross-trading on the OTCQX market, which increases visibility in the United States
Neither of those developments changes the core operating story on its own, but together they hint at a business that is becoming more visible beyond the UK market. For a company operating in a global semiconductor and satellite ecosystem, that visibility could become increasingly valuable.
The bigger picture
The most interesting thing about EnSilica right now is that its story sits at the intersection of several powerful trends:
- The strategic importance of resilient satellite communications
- The rapid buildout of new space-based connectivity networks
- The growing need for low-power, high-performance custom chips
- The scalability of the fabless semiconductor model
For years, the company appears to have been laying technical foundations. Now it has a more tangible opportunity to convert those foundations into larger commercial outcomes.
The recent European satellite operator contracts do not guarantee success, and the long timescales involved mean patience is still required. But they do suggest that EnSilica has moved beyond simply telling an attractive technology story. It is starting to secure the kind of roles that can matter in a meaningful way.
And in the satellite communications market, where sovereign capability, resilient networks and advanced semiconductor design are all becoming more important, that may prove to be exactly the right place to be.
Important note: Nothing here is intended as investment advice. Do not make any investment decision based solely on commentary or company discussion. Always do your own research.
