QuickLogic Targets Defense, Space Growth With Rad-Hard FPGA Push

QuickLogic Corporation is focusing on expanding its presence in the aerospace, defense, space, and critical infrastructure sectors by developing radiation-hardened FPGAs. The company has secured a contract with the Department of Defense to create a specialized radiation-hardened FPGA for mission-critical weapon and defense systems.

QuickLogic is self-funding the development and providing samples to defense customers, with the hope of receiving evaluations by year-end and securing designs into programs of record next year. If successful, major systems could generate hundreds of millions of dollars in revenue for the company. Additionally, the company aims to extend its rad-hard work into radiation-tolerant applications for space-based systems, such as low-Earth-orbit satellite constellations.

QuickLogic's value proposition for defense customers includes being U.S.-domiciled, using U.S. personnel in designs, and manufacturing products onshore. This focus on trusted supply chains aims to address concerns surrounding foreign-sourced electronics. The company generates revenue from device sales, IP licensing, and services, with IP licensing carrying gross margins in the 80% range.

As the Defense Department development contract winds down, the company expects device revenue and IP licensing to become the primary sources of revenue, with the goal of reaching gross margins in the high 60% range or higher.