Silicom Ltd. (NASDAQ: SILC) announced a new design contract with a European leader in secure communications, securing an initial $1 million commitment for customized FPGA SmartNICs and an anticipated $3 million annual deployment as the customer scales its platform.
The contract requires the SmartNIC to be tailored to the customer’s exact specifications, with delivery slated for the second half of 2026. The win underscores Silicom’s strength in post‑quantum cryptography (PQC) and its ability to rapidly adapt hardware to meet demanding security requirements, positioning the company as a preferred partner for high‑security networking solutions.
Silicom is already in talks to deliver a next‑generation, higher‑speed SmartNIC in 2028 and to develop a full‑system solution that combines a server with an FPGA SmartNIC, extending the partnership beyond the current deployment.
The $3 million annual deployment represents a 150 % increase over the initial commitment and adds a significant recurring revenue stream. It aligns with Silicom’s 2026 growth outlook, which is supported by a trend of revenue growth and narrowing net losses—Q4 2025 revenue rose 17 % to $16.9 million, and the net loss narrowed to $1.9 million from $5.1 million in Q4 2024.
"This encryption leader's selection of Silicom reflects the excellent performance of our off‑the‑shelf products, which it tested thoroughly, and its appreciation for our exceptional rapid customization capabilities," said CEO Liron Eizenman. "It confirms our reputation as a leading player in FPGA SmartNIC technology and a provider of unique encryption hardware acceleration solutions with backward compatibility and easy migration to PQC support."
Investors have responded positively to Silicom’s momentum, with the company’s shares trading near their 52‑week high and posting a 73 % return over the past year. Year‑to‑date, the stock has gained 58 % as confidence in its specialized networking solutions grows.
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