Sequans Expands Business Model with Technology IP Licensing and Engineering Services

Rhea-AI Summary

Sequans Communications (NYSE: SQNS) has announced a strategic expansion of its business model by formally launching technology IP licensing and engineering services. The company, known for IoT semiconductor solutions, will now offer its intellectual property and expertise to a broader market beyond traditional product sales.

The new offering includes advanced RF transceiver and analog silicon IP, modem and SoC IP based on 5G RedCap and eRedCap technologies, and a carrier-grade 5G protocol stack. This expansion targets diverse sectors including space, defense, automotive, wearables, and consumer electronics, complemented by comprehensive engineering design services.

Positive

• Expansion into new revenue streams through IP licensing and engineering services
• Access to broader markets including space, defense, automotive, and consumer electronics
• Leveraging existing proven technology and expertise with Fortune 500 companies

Negative

• None.

Insights

Technology Strategy Analyst

Sequans' strategic pivot to IP licensing expands revenue potential beyond IoT hardware into multiple high-value verticals.

Sequans is making a significant strategic pivot by formalizing technology IP licensing and engineering services as a dedicated business line. This represents a material expansion beyond their traditional semiconductor product sales model. The company is effectively monetizing their intellectual property in 5G RedCap and eRedCap technologies, RF transceiver IP, and carrier-grade protocol stacks.

This strategy unlocks multiple revenue streams from their existing technology investments while requiring minimal additional capital expenditure. By targeting verticals like space, defense, automotive, wearables, and consumer electronics, Sequans is substantially expanding their addressable market beyond IoT-specific applications.

The business model shift follows the playbook of successful semiconductor IP companies like ARM and Rambus, potentially enabling higher-margin recurring revenue compared to traditional chip sales. This approach also partially insulates Sequans from semiconductor manufacturing challenges and inventory risks.

The move leverages Sequans' established credibility from previous Fortune 500 partnerships, suggesting the company has already validated market demand before formalizing this initiative. By providing both IP blocks and integration services, Sequans can capture value across the entire implementation process while building deeper strategic relationships with customers seeking customized wireless connectivity solutions.

Paris, France--(Newsfile Corp. - September 29, 2025) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of semiconductor solutions for the Internet of Things (IoT), today announced a strategic expansion of its business model with the formal launch of a new go-to-market initiative focused on technology IP licensing and engineering services.

Building on a proven history of successful collaborations with Fortune 500 companies and top-tier technology leaders, Sequans is now establishing these capabilities as a dedicated business line. This move marks a significant evolution in the company's strategy, extending its reach beyond traditional product sales and the IoT domain.

"This initiative reflects the growing demand for our core technologies across a wide range of industries," said Georges Karam, CEO of Sequans. "We've consistently seen our innovations deliver value far beyond conventional product boundaries. By making our IP and engineering expertise more accessible, we're enabling partners to seamlessly integrate advanced radio solutions into their platforms-while expanding our market reach."

The new offering includes:

• Advanced RF Transceiver and Analog Silicon IP
• Modem and SoC IP based on Sequans' cutting-edge 5G RedCap and eRedCap technologies
• Carrier-grade 5G Protocol Stack

These IP assets are complemented by comprehensive engineering design services, supporting customization and integration into customers' products and platforms.

With this expansion, Sequans is uniquely positioned to serve a broader range of verticals-including space, defense, automotive, wearables, and consumer electronics-while maintaining its commitment to delivering high-performance semiconductor products for the 5G/4G IoT market.

This initiative represents a key milestone in Sequans' growth strategy and reinforces its role as a technology enabler in today's rapidly evolving digital landscape.

For more information, visit: https://www.sequans.com/IP

About Sequans

Sequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) as well as a pioneer in Bitcoin Treasury. Sequans views Bitcoin as a long-term investment and intends to strategically accumulate it as its primary treasury reserve asset. The company's approach involves acquiring and holding Bitcoin using net proceeds from equity and debt issuances - executed from time to time based on market conditions - as well as cash generated from operations and intellectual property monetization.

Sequans' engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications - including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. The company also provides advanced design services and technology licensing. Sequans management believes the combination of a strategic Bitcoin reserve and deep focus on semiconductor innovation positions the company for long-term value creation.

Founded in 2003, Sequans is headquartered in France and operates globally, with offices in the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.

Visit Sequans at sequans.com and follow us on LinkedIn and X

Contacts

Sequans investor relations:
David Hanover/Rob Kelly, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.com

Sequans media relations:
Linda Bouvet (France), +33 170721600, media@sequans.com

Forward-Looking Statements

This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the Company's business strategy. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "committed to", "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors it believes appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our ability to successfully implement our business strategy. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, including tariffs and trade wars. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2024, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/268319

FAQ

What new business model did Sequans Communications (SQNS) announce in September 2025?

Sequans announced the launch of technology IP licensing and engineering services, expanding beyond traditional product sales to offer their intellectual property and expertise to a broader market.

What types of IP technology will Sequans (SQNS) offer under its new licensing model?

Sequans will offer three main IP technologies: advanced RF transceiver and analog silicon IP, modem and SoC IP based on 5G RedCap and eRedCap technologies, and carrier-grade 5G protocol stack.

Which industries will Sequans (SQNS) target with its new IP licensing business?

Sequans will target multiple verticals including space, defense, automotive, wearables, and consumer electronics, while maintaining its existing IoT semiconductor business.

How does the new IP licensing strategy benefit Sequans (SQNS)?

The strategy allows Sequans to expand its market reach, create new revenue streams, and enable partners to integrate their advanced radio solutions into various platforms beyond traditional IoT applications.