Company Introduction

Sondrel is a UK founded and headquartered fabless semiconductor business providing turnkey services in the design and delivery of complex, high end ‘application specific integrated circuits’ (“ASICs”) and ‘system on chips’ (“SoCs”) for leading global technology brands. Sondrel’s capabilities are provided to customers seeking competitive advantage by including customised ASIC/SoC devices enabling differentiation of their end products when addressing fast growth technology megatrends. 

Sondrel has grown over a period of more than 20 years and delivers complex ASIC/SoC designs on a consultancy and/or project basis for a wide range of leading multi-national corporate customers. The high-end complex ASICs/SoCs designed and supplied by Sondrel to its customers and Sondrel’s previous designs have been included in well-known products such as Apple iPhone, Sony PlayStation, Meta’s Oculus Quest virtual reality headset, Samsung, Google and Sony smartphones, JVC prosumer camcorders and Tesla and Mercedes-Benz cars. 

Originally, Sondrel provided customers with both its market leading ASIC/SoC designs, and also an engineering consulting service during the ‘new product introduction’ (“NPI”) prototyping, testing and production phases. However, in recent years Sondrel has successfully transitioned its business model such that customers also now contract directly with Sondrel to purchase production ASIC/SoC devices directly from Sondrel as a ‘one stop shop’, something which customers have previously been required to source themselves from a third party. 

With OEMs and OEM suppliers increasingly focused on semiconductor supply chain resilience and efficiency, customers are able to contract Sondrel as a single counterparty in the design, supply chain management and production of ASIC/SoC devices. Sondrel’s customers are therefore able to differentiate their end products with Sondrel’s market leading design capabilities at the forefront of technology whilst also leveraging Sondrel’s expertise and relationships throughout the semiconductor industry. In doing so, Sondrel’s customers are able to remove the requirements for multiple counterparties in the ASIC/SoC supply chain and for supply chain management.

Growth Strategy

The Group has ambitions to grow revenues to over £100 million in the medium term.

Transition in business model

Sondrel has transitioned its business model to provide a full turnkey ASIC/SoC design and supply service for its customers that includes contracting for the testing and production of ASICs/SoCs in addition to the existing design and production consulting. Tturnkey design and supply contracts will allow the Group to address more opportunities in parallel than has historically been the case and therefore to scale revenues more rapidly.

Increase in engineering headcount

Sondrel plans to increase the number of engineers it employs from its current level of 134 to approximately 150 by the end of 2022 and to approximately 165 by the end of 2023. This will enable the Group to address more opportunities in its pipeline, further develop its Architecting the Future IP platforms and increase its efforts on R&D.

Increase opportunities in the USA

Sondrel has identified the USA as a key growth market and plans to increase investments in sales and marketing in region to accelerate sales of the Company’s services.