Key Asic signs RM10mil ASIC design contract

KUALA LUMPUR: Key Asic Bhd has entered into a major application-specific integrated circuit (ASIC) design service contract with a customer, R Company, for a total contract value of over RM10mil over a period of three years.

R Company specialises in designing, developing, manufacturing, and selling products that incorporate semiconductor devices.

In a filing with Bursa Malaysia, Key Asic said the contract consists of two main components: a non-recurring engineering (NRE) fee, which covers intellectual property (IP) licensing and design engineering services, and revenue from the mass production of the chips.

“The contract is likely to generate recurring income for the next few year,” Key Asic said.