Silicom Bets on Post-Quantum Security as Its Next Growth Engine

3 November, 2025

The Israeli networking hardware company wins a $2 million-a-year design deal for post-quantum cryptography and sees PQC as a key driver of its 2026 growth strategy

Silicom Ltd. has identified post-quantum cryptography (PQC) as one of its next major growth engines, following a new $2 million-per-year design win in the emerging field of quantum-resistant data protection.

During the company’s quarterly earnings call, CEO Liron Eisenman revealed that this is Silicom’s second PQC-related design victory this year. The project involves a smart FPGA-based networking card that integrates SSL acceleration and on-board post-quantum encryption—processing the cryptography directly on the card rather than on the server’s CPU.

Mass deployment of the cards is scheduled to begin in 2026 and is expected to generate around $2 million in annual revenue from this contract alone. “While large-scale quantum computers are still years away,” Eisenman noted, “telecom equipment makers and service providers are already defending against the emerging ‘harvest-now, decrypt-later’ strategy. Having a mature PQC solution gives us a clear competitive edge.”

He added that major enterprises and regulators worldwide are now preparing for the quantum threat: “Quantum attacks could potentially break every encryption standard in use today. Organizations are integrating PQC into their architectures to ensure business continuity once quantum computing becomes available. When that risk turns real, regulators will require a shift to quantum-resistant algorithms—and we’ll be ready to deliver those critical solutions.”

Silicom’s third-quarter 2025 revenue totaled $15.6 million, up from $14.8 million in the same quarter last year. For the first nine months of 2025, revenue reached $45 million, compared with $43.6 million a year earlier.
The company posted a cumulative net loss of $8.9 million for the past three quarters but maintained positive cash flow and stable order momentum.

Eisenman said the two PQC design wins in 2025 lay the foundation for a return to double-digit growth starting in 2026. Silicom’s guidance for the final quarter of 2025 is $15–16 million in sales.

“Our strategic plan targets annual revenue of $150–160 million,” he emphasized. “We’re seeing strong momentum in design wins and a healthy pipeline, and we’re now focused on converting those opportunities into sustained top-line growth—something we expect to become visible from 2026 onward.”

As the cybersecurity world braces for the quantum era, Silicom appears to be positioning itself as one of the first hardware vendors ready to make the leap—from today’s encryption to tomorrow’s quantum-proof communications.

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Posted in: News

Posted in tags: post-quantum cryptography (PQC) , Silicom

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