SEALSQ Continues to Make Progress on Post-Quantum Engineering Roadmap and Leverages New Hardware Platform to Develop Custom Application Specific ICs (ASICs)

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SEALSQ Corp (NASDAQ: LAES) announces the production phase of engineering samples for its new quantum-resistant hardware platform, QS7001™. The company is also developing custom ASICs for key market players, fueling business growth and revenue opportunities. SEALSQ's focus on post-quantum technology reflects its strategic move towards a new pipeline of business opportunities and revenues.

Positive

• Initiation of production phase for new quantum resistant hardware platform QS7001™

• Development of custom ASICs for large market players

• Strategic move towards a new pipeline of business opportunities and revenues

• Focus on post-quantum technology reflects company's growth strategy

Negative

• None.

Tech Industry Analyst

SEALSQ's move into post-quantum ASICs is a bold step in semiconductor technology, aligning with the industry's push for quantum-safe security solutions. Their focus on developing a RISC V quantum resistant platform marks a significant innovation in chip design, potentially positioning SEALSQ as a pioneer in the post-quantum era. Considering Common Criteria EAL5+ and NIST FIPS 140-3 certifications indicate their commitment to meeting the highest security standards, which could become a key differentiator in winning customer trust. Manufacturing custom ASICs opens the door to lucrative contracts and long-term collaborations, leveraging non-recurring engineering fees to offset initial development costs.

Financial Analyst

The strategic pivot towards custom ASIC production is a financially astute move for SEALSQ. ASICs often come with high-margin opportunities due to the specificity and customization for clients. The anticipated pay-off structure of these deals to cover non-recurring expenses indicates a strong revenue model with potential for sizable up-front payments. This positions SEALSQ to potentially increase its cash flow and reinvest in further R&D, which is critical in the tech sector. Investors should monitor how SEALSQ manages the balance between upfront investment in the Semiconductor Design and Personalization center and the expected returns from the new ASICs business line.

Market Research Analyst

SEALSQ's entry into the post-quantum ASIC market is timely. As industries prepare for the quantum computing age, demand for quantum-resistant technologies is expected to surge. By targeting large electronic manufacturers early, SEALSQ is strategically positioning itself in a niche market. This could result in strong partnerships, boosting their market share and brand reputation. The emphasis on meeting high-level security certifications also appeals to sectors where data protection is paramount, further widening their potential market. Monitoring the response from these large players will be telling of SEALSQ's ability to meet market needs and adapt to complex customer requirements.

Geneva, Switzerland, April 30, 2024 (GLOBE NEWSWIRE) --

SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI and Post-Quantum technology hardware and software products, today announced that it has initiated the production phase of engineering samples of its new QS7001™ quantum resistant hardware platform. Concurrently, the Company is leveraging on this design to develop custom ASICs for several large players in the market.   

As a result of the Company’s investments and focus on the QUASARs post-quantum project, the engineering team is progressing at a fast pace on the development roadmap. Following the completion of the design phase, the team has now moved on the next step, initiating production of the first engineering samples which are expected to be delivered to SEALSQ by its suppliers before year end.

The QS7001™ RISC V quantum resistant platform will serve as the base for SEALSQ’s next generation Post Quantum Secure Microcontroller and TPM products: VaultIQ™. The chips hardware will be compliant with the demanding Common Criteria EAL5+ certification level, while the firmware running CRYSTAL’s post-quantum algorithms “Kyber” and “Dilithium” will be NIST FIPS 140-3 certified.

SEALSQ has also initiated a strategic move to leverage on the new chip’s powerful hardware architecture capabilities by approaching several large electronic manufacturers to discuss the development of custom quantum resistant chips derived from the QS7001 and integrating application specific customer requirements. By entering the segment of post-quantum ASICs, the Company is taking a strategic step in its commercial and industrial strategy, paving the way for a significant new pipeline of business opportunities and revenues.

From a financial point of view, ASICs development contracts typically feature an anticipated and significant pay-off from the customer to cover non-recurring expenses corresponding to engineering development fees. From an industrial perspective, this initiative is particularly aligned with SEALSQ’s current project to build a Semiconductor Design and Personalization center as its engineering resources will fuel the Company’s upcoming ASICs activity.

About ASICs
ASICs are specialized integrated circuits designed to perform specific functions or tasks within a particular application domain. They offer advantages such as higher performance, lower power consumption, and reduced size and cost compared to alternative solutions like field-programmable gate arrays (FPGAs) or general-purpose microcontrollers.

Overall, the ASIC market is characterized by steady growth, driven by technological advancements and increasing demand for customized solutions across various industries.

1. Market Size: The global application specific integrated circuit market size was USD 17.99 billion in 2022 and is expected to hit around USD 35.89 billion by 2032 with a registered CAGR of 7.20% from 2023 to 2032.
2. Application Areas: ASICs find applications in telecommunications, automotives, consumer electronics, industrial automation, and healthcare.
3. Technology Trends: Advancements in process nodes and packaging technologies enable higher integration, improved performance, and lower power consumption, particularly for AI, IoT, and 5G applications.
4. Emerging Markets: Demand is rising for low-power ASICs in IoT and sensor applications, as well as for ASICs used in ADAS, autonomous vehicles, and EVs in the automotive sector.
5. Security Concerns: ASIC vendors are integrating hardware-based security features such as encryption and authentication to address cybersecurity threats, especially in IoT and cloud computing.
   
   

About post-quantum microcontrollers
Post-quantum microcontrollers are being developed to integrate post-quantum cryptographic algorithms and security features. Key activities include research, integration of algorithms, adding hardware-based security features, standardization, deployment in various applications, and raising awareness about their importance. These microcontrollers aim to secure digital systems against potential threats posed by quantum computing technology.

About SEALSQ:
SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, Medical and Healthcare and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.

Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks. For more information, please visit www.sealsq.com.

Forward-Looking Statements
This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the expected success of our technology strategy and solutions for IoMT Security for Medical and Healthcare sectors, SEALSQ's ability to implement its growth strategies, SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

SEALSQ Corp. Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@sealsq.com

SEALSQ Investor Relations (US) The Equity Group Inc. Lena Cati Tel: +1 212 836-9611 / lcati@equityny.com Katie Murphy Tel: +212 836-9612 / kmurphy@equityny.com