ENSILICA,

based in Abingdon, is little more than 20 miles from Sondrel and is also well-known in the ASICs field. But it specialises in so-called mixed-signal chips, which are rather different from Sondrel’s in the way they are made and used.

The group focuses on four main markets – satellite communication, healthcare, advanced industry and high-end car manufacture.

In healthcare, the company’s chips can be found in diabetic patches that monitor glucose levels, or wearable devices, such as Fitbits, that can monitor users’ heartbeat. EnSilica’s kit is essential on the factory floor of companies that use robots and artificial intelligence to make their goods. EnSilica chips also allow firms to monitor the safety of their appliances and carmakers turn to it as they become increasingly high-tech. The group has moved into satellite communications too, where its chips provide internet access in remote parts of the world, a market with vast potential.

Ian Lankshear, right, a Bill Gates lookalike, founded EnSilica in 2001. But the group’s current strategy dates back to 2014, when he teamed up with chairman Mark Hodgkins, a former accountant, who has spent years advising small firms on how to grow.

That was when the company decided to move from being a design consultancy to a full-service, mixed signal chipmaker. Today EnSilica does what Sondrel is about to do – overseeing the entire chip process, from design to production to supply. Quality is paramount and EnSilica has a reputation for delivering the goods.

Brokers expect a 30 per cent increase in revenues to £19.8million for the year to May 2023, rising to £23million in 2024 and more than £30million the following year.

Profits are around £1million today but should rise sharply over the next three years.

MIDAS VERDICT: Lankshear and Hodgkins combine tech know-how with commercial nous and EnSilica is well-positioned in a growing market. The shares are 49p and deserve to move higher. Buy.