Key Asic wins two design service contracts worth RM26 mil

TheEdge Tue, Dec 06, 2022 11:21pm - 3 months View Original

KUALA LUMPUR (Dec 6): Key Asic Bhd said it has won two design service contracts worth over RM26 million, to be undertaken over a three-year period.

The customer, referred to only as P Company, is in the business of designing, manufacturing and selling products that contain semiconductor devices.

“Each contract consists of two parts, the non-recurring engineering (NRE) fee that consists of IP licensing and design engineering fees, and the sales of the chips in mass production,” said Key Asic in a bourse filing.

The Internet of Things (IoT) chipmaker said it could not disclose other details of the contracts, as the projects are in the research and development phase.

The latest contract wins come after the group bagged three other contracts worth RM28 million in October.

“The investment made over the years, persistently and consistently, has built up a large pool of analogue IPs and technology platforms that has enabled the company to deliver first-time silicon success in every Asic design project that we have engaged,” said Key Asic chairman and chief executive officer Eg Kah Yee.

“We are focusing on advanced technologies ranging from 28 nm (nanometre) to seven nm, and eventually five nm projects, and we have a healthy backlog and strong pipeline of projects despite the current slowdown in the semiconductor industry,” he added.  

Key Asic’s share price closed unchanged at five sen on Tuesday (Dec 6), giving the group a market capitalisation at RM67.56 million.

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