EnSilica Shares Jump on UK Space Agency Award

EnSilica (LON: ENSI) shares jumped to a high of 48p a share in early Monday trading after the company announced it had secured £10.38 million in funding from the UK Space Agency under the Connectivity in Low Earth Orbit (C-LEO) programme. 

Despite the initial surge, the stock has since pulled back. While it is currently up over 4%, it sits below the day’s high at 44p.

The funding will support EnSilica’s development of advanced semiconductor chips for the next generation of satellite broadband hardware.

The chips are expected to power highly integrated, mass-market satellite broadband user terminals capable of connecting with multiple satellite constellations, including OneWeb and the European Union’s planned IRIS2 system. 

EnSilica said the project aims to provide a resilient, independent source of chips not tied to specific satellite operators.

Ian Lankshear, CEO of EnSilica, described the award as “highly significant,” noting that satellite communications is a “fast-expanding globally.” 

He added, “This funding will enable us to advance our technology and bring innovative solutions to the satellite broadband market, offering resilient internet connectivity in times of crisis and high-speed internet access for remote communities.”

The funding, which covers up to half the project’s cost over three years, will be disbursed based on milestone achievements.

It follows a competitive application process and comes as part of the UK Space Agency’s £160 million C-LEO programme, designed to support the UK’s space sector in the evolving low Earth orbit market.

EnSilica said the growing demand for satellite user terminals, exemplified by Elon Musk’s Starlink, presents a market opportunity projected to reach $16.5 billion by 2031.