QuickLogic Corporation announced a major expansion of its Strategic Radiation‑Hardened (SRH) FPGA contract, raising the total ceiling value to $88 million over multiple years. The new scope adds fabrication on GlobalFoundries’ 12LP process, a node that delivers higher‑density, higher‑performance devices for defense and space applications. The expansion is sponsored by the Department of Defense’s Trusted and Assured Microelectronics (T&AM) Program and led by the Naval Surface Warfare Center (NSWC) Crane.
The $88 million ceiling represents a substantial increase from the original 2022 contract, which had a base value of $6.9 million and options totaling up to $72 million. By adding the 12LP fabrication node, QuickLogic is positioning itself as the sole U.S. source for SRH FPGAs, reinforcing its competitive moat in a niche but high‑value market that is critical to national security. The contract’s long‑term nature provides a predictable revenue stream that can help offset recent financial headwinds.
QuickLogic’s Q3 2025 financials illustrate the importance of this new contract. The company reported revenue of $2.03 million, a 51.8% year‑over‑year decline, and a GAAP net loss of $4.01 million. The expanded contract will be recognized over several years, so its immediate impact on the quarterly results will be modest, but it signals a significant shift toward a more stable, high‑margin revenue base.
CEO Brian Faith emphasized the technological progress behind the expansion: “We are proud to announce that we have completed the design and tape‑out for an FPGA test chip that will be fabricated by GlobalFoundries on its 12LP process.” His statement highlights QuickLogic’s engineering capability and its readiness to meet the demanding requirements of defense and space customers.
The market reacted strongly to the announcement, with QuickLogic’s stock rising 12.16% and adding roughly $12 million to its valuation. Investors cited the contract’s increased ceiling and the adoption of the advanced 12LP process as the primary drivers of the positive reaction, underscoring confidence in the company’s strategic direction.
The expansion builds on a foundation of government support. The T&AM program is a key Department of Defense initiative to secure microelectronics for critical systems, and QuickLogic’s involvement underscores its role in this national security effort. The 12LP process enables the company to deliver higher‑density, higher‑performance FPGAs, meeting evolving defense and space system requirements.
While the contract provides a significant tailwind, QuickLogic still faces short‑term challenges. The recent revenue decline and net loss reflect timing issues with other large eFPGA IP contracts and the need for continued cost discipline. The new contract’s revenue will be recognized over multiple years, so the company must manage cash flow and maintain operational efficiency to capitalize on the long‑term opportunity.
In summary, the expansion of the SRH FPGA contract to $88 million strengthens QuickLogic’s competitive position, provides a stable revenue foundation, and positions the company to capture growth in defense and space markets. The move signals a strategic pivot toward high‑margin, high‑security products that align with national priorities and offer a clear path to future profitability.
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