KUALA LUMPUR (Oct 19): Key Asic Bhd has declined to reveal whom the company secured a chip design contract worth RM28 million from, as the client is under a strict non-disclosure agreement.

Bursa Malaysia Securities had asked for details of the client and the contract following Key Asic's announcement on Monday (Oct 17) that it had clinched a chip design contract from a company named "Company S".

Key Asic said the client — "Company S" — does not agree to be disclosed as the project is highly sensitive and is at the research and development phase.

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

Key Asic said the contract commenced on Oct 17, 2022 and will be completed on Oct 16, 2025.

It said the contract will not have any effect on earnings per share and net assets per share of the group for the financial year ending May 31, 2023, in response to Bursa's query on whether the contract affects earnings per share and net assets per share of the company.

On Monday, Key Asic said it had secured three system-on-chip design wins which entailed 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, the company said.

Shares of loss-making Key Asic surged 28.57% at market close on Wednesday (Oct 19) to 4.5 sen per share.