KUALA LUMPUR (Oct 17): Internet of Things chips and system designer and manufacturer Key Asic Bhd announced on Monday (Oct 17) that it has bagged chip design contracts with a cumulative value of over RM28 million from S Company.

S Company is in the business of designing, developing, manufacturing and selling products that contain semiconductor devices.

In a bourse filing, Key Asic said it has secured three system-on-chip design wins, which entail the delivery of wafers and chips in the next three years.

The chips will go into engineering production in the next three months and subsequently into mass production, said the loss-making company.

For the full financial year ended May 31, 2022 (FY22), Key Asic widened its net loss to RM8.91 million from RM7.96 million a year earlier as revenue decreased to RM13.59 million from RM13.88 million, restricted by the availability of capacity in the foundry partners.

On prospects, Key Asic said there are some signs of capacity easing in some of the foundries and it hopes to ship more chips in FY23.

Key Asic's share price jumped 14.29% or half a sen to four sen at the time of writing on Monday (Oct 17), giving it a market capitalisation of RM47.71 million. The stock has declined 50% year-to-date.