Ceva and Sharp Collaborate on "Beyond 5G" IoT Terminals

Ceva, Inc. (NASDAQ: CEVA) and Sharp Semiconductor Innovation Corporation (SSIC) have joined forces to develop 'ASUKA', a groundbreaking System-on-Chip (SoC) for Beyond 5G (6G) IoT terminals. This strategic collaboration aims to democratize cellular IoT by offering a customizable alternative to traditional 5G SoCs, addressing the growing demand for specialized IoT connectivity solutions.

The ASUKA SoC, powered by Ceva's PentaG2 5G platform IP, features a software-defined radio (SDR) architecture that ensures future-proof flexibility and supports emerging 6G standards. This customizable architecture enables specialized application development, allowing for customized communication functions and seamless support for emerging standards. The SoC includes various expansion interfaces such as PCIe (Gen4), JESD204B, and USB 3.0, enabling function customization via PC connections and facilitating the construction of IoT solutions.

The Ceva-PentaG2 IP platform is specifically designed for lower-throughput applications such as RedCap and other optimized cellular IoT applications. It is highly efficient, requiring minimal power consumption, making it suitable for IoT and other battery-powered devices. The platform integrates advanced DSPs and accelerators to enable optimal signal chain processing and includes a complete 5G PHY software implementation.

The collaboration between Ceva and Sharp positions Ceva's PentaG2 IP platform as an enabling technology for the next wave of cellular IoT innovation, particularly for RedCap and optimized IoT applications where power efficiency is critical. The market alignment here is precise, as IoT connectivity needs diversify, and the one-size-fits-all approach becomes increasingly inadequate. Ceva's technology enables the customization necessary for specialized use cases while maintaining standards compliance and future adaptability.

The partnership represents a strategic expansion of Ceva's licensing model within the growing cellular IoT semiconductor market. As an IP licensor, Ceva's business model thrives when its technology is adopted in high-potential growth areas, and the "Beyond 5G" IoT terminal market fits this profile perfectly. The collaboration's significance extends beyond the immediate product announcement, as it validates Ceva's technological approach through adoption by an established industry player and creates a potential reference design effect that could accelerate additional licensing deals.

From a competitive standpoint, the customizable nature of the ASUKA SoC addresses a key market gap. Most cellular IoT solutions are either too rigid (fixed-function SoCs) or too complex (general-purpose SDR platforms). The ASUKA SoC strikes a balance that could drive adoption across multiple IoT verticals, positioning Ceva and Sharp at the forefront of the emerging Beyond 5G/6G IoT ecosystem.

For Ceva shareholders, this collaboration represents potential growth in both licensing revenues and eventual royalty streams if the solution gains market traction. The company's focus on lower-throughput applications like RedCap and optimized cellular IoT positions it in market segments with massive unit potential rather than just premium applications. Sharp's decision to showcase this technology at MWC25 indicates both companies' confidence in its market potential.



In conclusion, the collaboration between Ceva and Sharp on the ASUKA SoC represents a strategic positioning in the emerging Beyond 5G/6G IoT ecosystem. The customizable architecture of the ASUKA SoC addresses the market gap for specialized 5G IoT communication chips, offering future-proof flexibility and exceptional connectivity flexibility. The partnership positions Ceva's PentaG2 IP platform as an enabling technology for the next wave of cellular IoT innovation, particularly for RedCap and optimized IoT applications. The market alignment of Ceva's technology with the growing demand for customization in IoT connectivity needs contributes to the potential growth in licensing revenues and royalty streams for Ceva shareholders.