** Shares of BrainChip rise as much as 14.6% to A$0.275, their highest levels since Nov 28

** Co has signed an agreement with microprocessor provider Frontgrade Gaisler to incorporate BrainChip's Akida IP into system-on-chip solutions for hardware AI acceleration

** Co will receive 150,000 euros ($157,620) for taking part in a project, driven by the European Space Agency

** BrainChip is also entitled to receive 10% royalty on net sale price of Frontgrade's first licensed product

** Stock has risen 41.2% this year, as of last close

($1 = 0.9517 euros)

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))