Investing.com -- GCT Semiconductor Holding Inc. (NYSE:GCTS) stock jumped 8% in premarket trading Thursday after the company announced a licensing agreement for its 5G and 4G chipsets with a major satellite communications provider.
The 5G semiconductor designer said the deal will enable integration of its chipsets into the satellite provider’s user equipment, creating capabilities for connectivity via both satellite and terrestrial networks. The agreement also establishes a pathway for future chipset sales as the satellite provider will use GCT’s newly released 5G chipset for direct-to-satellite applications.
GCT expects shipments of the 5G products supporting this initiative to begin as early as the second half of this year. Under the terms of the agreement, GCT will provide access to its chipset portfolio for use in multiple user devices.
"This collaboration positions both companies at the forefront of emerging and growing 5G-to-space networks that aim to deliver coverage globally, including underserved regions, and aims to accelerate the industry’s transition toward unified terrestrial-satellite networks," said John Schlaefer, CEO of GCT.
The company noted that its expertise in non-terrestrial connectivity and proprietary mode-switching capabilities would help these devices outperform the current generation of non-terrestrial equipment.
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