Key Asic wins four design service contracts worth RM16mil

KUALA LUMPUR: Key Asic Bhd has entered into four turnkey ASIC design service contracts worth a total of RM16mil.

In a statement, the Internet of Things (IoT) chipmaker said two of the contract were from existing end customers and two were new customers, one of which is a Hong Kong-based customer.

“The total value of these four projects is RM16mil over a three-year period, bringing the total value of multiple contracts of over RM70mil since October 2022,” it said.

Turnkey ASIC design service is where Key Asic provides licensing of IP blocks, engineering design services including but not limited to place and route (P&R), timing verification of the ASIC/SoC, design rules checks/electrical rules checks (DRC/ERC), multi-project wafer (MPW) services, test program development for mass production of chips, and mass production including test and packaging of the chips.

It added that typically, the shipment of mass production of chips would last at least three or more years depending on the applications of the chips.

In addition to the non-recurring engineering fees, the projects usually contribute to a multi-year revenue stream from the shipment of the wafers/chips.

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