5G

Sequans to Expand 4G and 5G Partnership with Renesas

Sequans | January 06, 2022

Sequans to Expand 4G and 5G
Sequans Communications S.A. (NYSE: SQNS), a leading provider of cellular IoT chips and modules, announced an expansion of its existing 4G/5G licensing agreements with Renesas Electronics Corporation (TSE:6723, "Renesas"), a premier supplier of advanced semiconductor solutions, granting special rights to Renesas that strengthen the go-to-market opportunities for Sequans' LTE-M/NB-IoT Monarch 2 and Taurus 5G platforms. In particular, by building on Renesas' extensive sales, distribution and customer support capabilities, the deal allows Sequans to expand its serviceable addressable market to India.  Additionally, Renesas will take a small equity stake in Sequans, and Renesas' Executive Vice President and Head of IoT and Infrastructure business unit, Dr. Sailesh Chittipeddi, will be nominated for election to the Sequans board of directors at the June 2022 shareholder meeting. The combined value of the business agreements and the equity investment, which is expected to close by January 14, 2022 subject to customary closing conditions, is approximately $20 million.

These multi-year agreements are designed to allow Sequans and Renesas to achieve several mutually beneficial goals. First, the agreements provide better control of manufacturing and product cost, which is especially important given the current supply challenges. Second, the agreements reinforce the joint product offerings and expand market opportunities. Third, the equity stake and board seat facilitate management alignment to strengthen the partnership and make the joint business successful.

"We are pleased to further strengthen our relationship with Renesas with both the LTE-M/NB-IoT and 5G businesses, as well as the opportunity to add Dr. Chittipeddi to the Sequans board,The expanded agreements reinforce our sales strategy and provide access to numerous new opportunities with a unique competitive solution while allowing us to leverage Renesas' strong global brand and manufacturing advantages."

-Georges Karam, CEO of Sequans.

Renesas values Sequans' comprehensive cellular IoT offering, which brings our global customers and us advanced 4G/5G IoT capabilities that can address the broadest scope of applications and develop new markets with unique needs," said Dr. Sailesh Chittipeddi. "Our deepening collaboration with Sequans enhances our global presence with best-in-class cellular IoT solutions.

About Sequans
Sequans Communications S.A. (NYSE: SQNS) is a leading developer and supplier of cellular IoT connectivity solutions, providing chips and modules for 5G/4G massive and broadband IoT. For 5G/4G massive IoT applications, Sequans provides a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms, featuring industry-leading low power consumption, a large set of integrated functionalities, and global deployment capability. For 5G/4G broadband IoT applications, Sequans offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms, optimized for low-cost residential, enterprise, and industrial applications. Founded in 2003, Sequans is based in Paris, France with additional offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, South Korea, and China. Visit Sequans online at www.sequans.com, and follow us on Twitter and Linked-In.

Spotlight

The integration of high-speed fifth-generation (5G) wireless networks in transportation will be transformative for everyday Americans—generating billions of dollars in economic benefits, reducing congestion, and saving lives. 5G is the latest iteration of enhanced mobile broadband that delivers internet speeds that are 10- to 100-times faster than current fourth-generation technology. • The United States lags behind China in deploying 5G. Since 2015, China has deployed 12 connected sites for every one site in the United States. The Chinese government’s $400 billion investment in 5G and the growing international influence of its state-supported telecommunications giant Huawei Technologies Co. mean the United States risks ceding global leadership to a strategic adversary on crucial technology that will help shape the global economy.


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