Silicom Secures $5 Million/Year Design Win with Tier-1 Cyber Security Leader for New White-Label Switch Family

Silicom (NASDAQ:SILC) announced a design win with a Tier-1 global cyber security leader, which selected Silicom white-label switches as networking infrastructure for its security platforms.

Rhea-AI Summary

Silicom (NASDAQ:SILC) announced a design win with a Tier-1 global cyber security leader, which selected Silicom white-label switches as networking infrastructure for its security platforms. Samples are delivered, with first production orders expected in 2026 and annual sales projected at about $5 million after ramp-up.

The deal replaces a prior incumbent vendor and establishes white-label switching as Silicom’s newest product line, alongside server adapters, FPGA smart cards and Edge systems. Silicom is also in discussions for higher-end and additional white-label deployments.

Positive

• Design win expected to generate approximately $5 million in annual sales after full ramp-up
• Tier-1 global cyber security leader replaces incumbent proprietary switches with Silicom white-label solutions
• White-label switching established as Silicom’s newest product line, expanding its hardware portfolio
• Samples across the full switch range already delivered, with first production orders expected in 2026

Negative

• None.

Argus May 26 session

+4.85% close to close Open Argus

Details

News Market Reaction – SILC

On May 26, the day this news came out, SILC closed 4.85% above the previous close.

Data tracked by StockTitan Argus for the May 26 session.

Key Figures

Annual sales from win: $5 million/year Q1 2026 revenue: $19.1M Revenue growth: 33% YoY +5 more

Annual sales from win

$5 million/year

Expected after full ramp-up for white-label switch design win

Q1 2026 revenue

$19.1M

Q1 2026 results

Revenue growth

33% YoY

Q1 2026 vs prior-year quarter

Q2 2026 guidance

$20M–$21M

Company revenue guidance range

FY 2026 targets

$82M–$83M

Full-year 2026 revenue target range

FPGA SmartNIC win

~$3M/year

Target annual deployment from European secure-communications design win

Initial FPGA NIC commitment

~$1M

Converted into expected H2 2026 deliveries

Streaming win path

$25M–$30M

Five-year revenue path from streaming-related win

Historical Context

5 past events · Latest: May 05

5 events

1. May 05

   AI design win

   24h Move

   +11.7%

   AI inference customer orders for PoC targeting Tier‑1 hyperscalers.

2. May 05

   Conference participation

   24h Move

   +11.7%

   Participation in Needham TMC conference with presentation and 1x1 meetings.

3. Apr 30

   Q1 2026 earnings

   24h Move

   +37.8%

   Q1 2026 revenue growth and raised guidance with multi‑year design paths.

4. Apr 15

   FPGA NIC win

   24h Move

   +2.4%

   FPGA SmartNIC design win targeting ~$3M/year deployment.

5. Mar 31

   Earnings schedule

   24h Move

   +4.9%

   Announcement of Q1 2026 results release date and conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

white-label switches, FPGA smart cards, Edge systems, FPGA SmartNIC, +1 more

5 terms

white-label switches technical

"has selected a range of Silicom-designed white-label switches as the networking"

White-label switches are pre-built technical systems—often for routing payments, data, or network traffic—that one company licenses and rebadges as its own. For investors, they matter because they let businesses launch or scale services quickly and cheaply (think of renting a ready-made storefront instead of building a shop from scratch), which can boost revenue and margins but also create dependency on the switch provider and expose the buyer to operational or compliance risks.

FPGA smart cards technical

"portfolio that already features industry-leading server adapters, FPGA smart cards"

FPGA smart cards are secure payment or ID cards that use a reprogrammable hardware chip (a field‑programmable gate array) to run encryption, authentication and other trusted functions. Like a lock whose internal mechanism can be updated without replacing the whole unit, they offer the ability to add or fix security features after deployment; that flexibility can affect product lifespan, compliance risk, manufacturing cost and profit margins—matters investors watch closely.

Edge systems technical

"portfolio that already features industry-leading server adapters, FPGA smart cards and Edge systems"

Edge systems are computing devices and software that process data close to where it is created—like sensors, on-site servers, or smart gateways—rather than sending everything to distant cloud servers. For investors, they matter because they can lower costs, speed up decision-making, improve privacy, and enable new products and services; companies that build or use edge systems can gain competitive advantages in markets tied to real-time data and internet-of-things applications.

FPGA SmartNIC technical

"Silicom will customize its FPGA SmartNIC for advanced encryption"

An FPGA SmartNIC is a network adapter that contains a programmable chip (an FPGA) so the card can be customized to handle networking, security, or data-processing tasks directly on the network interface instead of the main server processor. For investors, it matters because these cards can raise performance, cut operating costs, and enable new services in data centers—think of adding a specialized assistant that takes routine work off a manager’s desk so the manager can focus on higher‑value tasks.

Post‑Quantum Cryptography technical

"for advanced encryption and Post‑Quantum Cryptography support"

Post-quantum cryptography is a set of new encryption methods built so that data remains secure even if attackers use powerful quantum computers. For investors, it matters because companies that store customer data, run financial systems, or own sensitive intellectual property face financial, legal and reputational risk if current encryption is broken—moving to post‑quantum security is like upgrading locks before a new kind of burglar appears to protect value and compliance.

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KFAR SAVA, Israel, May 26, 2026 /PRNewswire/ -- Silicom Ltd. (NASDAQ: SILC), a leading provider of networking and data infrastructure solutions, today announced a design win with a Tier-1 global cyber security leader, which has selected a range of Silicom-designed white-label switches as the networking infrastructure for its security platforms. Silicom engineered the full switch range to meet the customer's exact specifications, leveraging its existing switching building blocks and deep domain know-how to deliver a tailored solution within the customer's demanding timeline. Samples of the full product range have already been delivered to the customer, and first production orders are expected to be fulfilled during 2026. After full ramp-up, annual sales are expected to reach approximately $5 million. Furthermore, discussions are already underway regarding higher-end white-label switches for the customer's next-generation systems — an opportunity that has the potential to significantly increase the white-label switch revenues from this account.

 

 

Seeking to move away from vendor lock-in, the customer replaced its existing proprietary switches from an incumbent industry leader with Silicom's open, white-label solutions. The customer selected Silicom following a rigorous evaluation process, citing Silicom's engineering depth, its ability to deliver a complete and validated switch range to specification, and its reputation as a reliable, long-term hardware partner. This strategic design win establishes white-label switching as Silicom's newest product line, broadening a portfolio that already features industry-leading server adapters, FPGA smart cards and Edge systems.

"Being chosen by a global cyber security leader of this caliber to design and supply its entire switch family is a strong testament to the trust our customers place in Silicom," commented Liron Eizenman, Silicom's CEO. "We are proud to have delivered a complete, validated switch range that meets this demanding customer's exact specifications — to the highest quality standards and on schedule. This is precisely the kind of meaningful, incremental win that strengthens our revenue base and confirms the value of our broad engineering capabilities." 

Mr. Eizenman continued, "This win also demonstrates our ability to expand our partnerships into new product areas, responding to customer needs with speed and precision. The samples we have already delivered across the full switch range speak for themselves — and with first production orders expected to be delivered during 2026, this relationship is moving forward rapidly. Importantly, we view this as just the first step into a broader market. We are already in active discussions with other potential customers for our white-label switching solutions, marking a powerful entry into a space where we see meaningful opportunity ahead." 

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions.  Designed to optimize performance and efficiency in Cloud, Data Center and Edge environments, Silicom's solutions increase throughput and minimize latency, serving as the infrastructure backbone for today's most critical technologies. Our innovations empower high-demand workloads across Artificial Intelligence (AI) inference, SD-WAN, SASE, cyber security, fabric switching, NFV, and more.

Our comprehensive portfolio, including high-speed server adapters, advanced hardware offloading and acceleration engines, AI NICs, FPGA-based smart cards, Post Quantum Cryptography (PQC) hardware accelerators, white label switches and Edge CPEs, is used by Tier-1 customers throughout the world, including cloud players, service providers and OEMs, to enable their networks to scale efficiently. With engineering excellence, a strong financial position and a legacy of over 400 active Design Wins, Silicom serves as the "go-to" connectivity and performance partner for technology leaders around the globe, and drives the next generation of infrastructure.

For more information, please visit: www.silicom.co.il

Statements in this press release which are not historical data are forward-looking statements within the meaning of applicable securities laws which involve known and unknown risks, uncertainties, or other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or other expectations implied by these forward-looking statements.

These factors include, but are not limited to, Silicom's  dependence for substantial revenue growth on a limited number of customers, industry trends affecting networking and data center infrastructure, including the migration to cloud architectures, disaggregation of networking systems and the separation of hardware and software solutions; the pace of adoption of emerging technologies such as artificial intelligence inference infrastructure; the timing and extent of market adoption of Silicom's new products and of new Design Wins achieved by Silicom; fluctuations in customer purchasing cycles and the timing of customer deployments; protection of intellectual property, changes in exchange rates; and the wars in Gaza, Lebanon and with Iran, as well as the war in the Ukraine, and existing and potential disruptions to global shipping routes such as the Straits of Hormuz and the Red Sea.

Further information about the company's businesses, including information about factors that could materially affect Silicom's results of operations and financial condition, are discussed in our Annual Report on Form 20-F and other documents filed by Silicom and that may be subsequently filed by the company from time to time with the SEC. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "expect," "should," "believe," "anticipate" or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. In light of significant risks and uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by Silicom that it will achieve such forward-looking statements. The company disclaims any duty to update such statements, whether as a result of new information, future events, or otherwise.

Company Contact:

Eran Gilad, CFO
Silicom Ltd.       
Tel: +972-9-764-4555   
E-mail: erang@silicom.co.il 

Investor Relations Contact:

Ehud Helft
EK Global Investor Relations
Tel: +1 212 378 8040
E-mail: silicom@ekgir.com 

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SOURCE Silicom Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Silicom (NASDAQ:SILC) announce on May 26, 2026?

Silicom announced a design win with a Tier-1 global cyber security leader for a new white-label switch family. According to Silicom, its switches will serve as networking infrastructure for the customer’s security platforms, with production orders expected during 2026.

How much annual revenue could the new Silicom white-label switch deal generate for SILC?

According to Silicom, after full ramp-up, annual sales from this design win are expected to reach about $5 million. This projection reflects recurring sales of the custom white-label switch family used as networking infrastructure in the customer’s security platforms.

When will Silicom start shipping production orders for the new white-label switches?

Silicom expects first production orders for the white-label switch family to be fulfilled during 2026. According to Silicom, samples of the complete product range have already been delivered, indicating the program is progressing toward volume deployment with the Tier-1 cyber security customer.

How does the new white-label switch win affect Silicom’s product portfolio?

The design win establishes white-label switching as Silicom’s newest product line. According to Silicom, this broadens a portfolio that already includes server adapters, FPGA smart cards and Edge systems, potentially deepening customer relationships and diversifying future revenue streams in networking infrastructure.

Which competitor did Silicom replace with its white-label switches in this Tier-1 deal?

According to Silicom, the Tier-1 cyber security customer replaced proprietary switches from an incumbent industry leader with Silicom’s open, white-label solutions. The switch followed a rigorous evaluation process focused on engineering capability, complete validated switch range, and Silicom’s track record as a long-term hardware partner.

What future opportunities does Silicom see from this white-label switching relationship?

Silicom reports ongoing discussions for higher-end white-label switches for the customer’s next-generation systems, which could increase switch revenues from this account. According to Silicom, it is also in active talks with other potential customers, viewing this as an entry into a broader market.