Oxfordshire semiconductor firm EnSilica will receive £10m from the UK Space Agency to develop OneWeb-compatible chips as part of a wider funding scheme to bolster Britain’s satellite market. 

The government contract comes just months after the London-listed chipmaker warned it would not be able to continue trading over the next year without a cash injection. 

The project will see EnSilica develop novel silicon chips and software for a user terminal compatible with UK and European satellite constellations such as OneWeb Next Generation. 

EnSilica shares jumped 10% to 46.26p at the opening of trading on Monday.

The UK Space Agency announced a total of £16m in funding on Monday as the government hopes to carve out a piece of the global space economy, which McKinsey projects will be worth $1.8tn by 2035. 

“The UK has all the cutting-edge expertise and technology to spearhead the latest advancements in satellite communications and become a leader in this high-tech industry,” said Telecoms Minister Sir Chris Bryant. 

“These government-backed projects will not only provide significant advancements in mobile communication, but help to bridge the digital divide, connecting communities in the most hard-to-reach areas.” 

The remaining £6m has gone to Welsh satellite company Excelerate Technology, which will develop small and flexible mobility and autonomy market user terminal systems for its institutional users to be able to choose the operator and orbit via an app. 

The announcement from the UK Space Agency comes ahead of its Ignite Space Conference, which will be held this week at the National Space Centre in Leicester. 

The agency said the event was for SMEs in the burgeoning space economy to connect with customers, collaborators and investors in the industry. 

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