Sondrel (Holdings) plc announced that it has won a new design and supply contract for a next generation video processing chip with a total estimated value of $23 million across the design, qualification and projected production life of the product. The complex chip is to be used for high performance professional video streaming solutions. The Company has entered into the master agreement with the customer and design work has commenced whilst the parties finalise negotiations to the exhibits to the agreement.

The initial contract value is for over $9 million for the duration of the design and qualification phases and the work will be fully funded by the customer. Chip production and supply are anticipated to start in 2026 and, subject to successful tapeout and qualification of prototypes, the contract is expected to generate production revenue of $14 million, over 10 to 15 year production lifetime of the product, based on current customer forecasts.