Swedish chip company inks deal with European satellite communications company
Sivers Semiconductors' business unit, Sivers Wireless, has signed a strategic development agreement worth USD 16.4 million with a European satellite communications company to develop several chipsets for satellite communication ground terminals.
Sivers has already received purchase orders for development work on this project from August to November 2022 The agreement includes the development of multiple chips, forming the core of the customer’s next generation of ground terminals.
This contract, in addition to a previous beamformer IC contract won by MixComm – which Sivers acquired in 2022 – constitutes a long-term deep strategic partnership where Sivers will deliver multiple different types of chips for the customers’ current and next-generation ground terminals. The long-term partnership is expected to last long past 2030 with Sivers’ chips being used in a growing number of terminals from 2023 and beyond.
The current generation of terminals will launch and start pre-series production in the first quarter of 2023, a press release reads.
Development activities for this agreement started in August 2022 and are planned to run through July 2024. It is estimated that the bulk of the work and revenue will be recognised in 2023. This work is expected to be followed by volume deployments, starting in 2024 or 2025 for the second-generation terminals.
“This is the largest development project ever for Sivers, and I am thrilled to see how the combined capability of our US and Swedish teams has enabled us to win this deal. This further strengthens Sivers’ solutions within the satellite communications market, and it is encouraging to see how well our teams work together on this project”, says Anders Storm, Group CEO, Sivers Semiconductors, in the press release.