Synopsys and TSMC Collaborate to Advance AI Chip Design with Cutting-Edge Solutions

Synopsys Partners With Taiwan Semi To Power Next-Gen AI Chip Innovations - Synopsys (NASDAQ:SNPS), Taiwan Semiconductor (NYSE:TSM)

Synopsys advances power efficiency and routing tech on Taiwan Semi's N2 process On Wednesday, Synopsys, Inc. SNPS announced its continued collaboration with Taiwan Semiconductor Manufacturing Co TSM to deliver advanced EDA and IP solutions on the contract chipmaker's most advanced process and 3DFabric technologies, accelerating innovation for AI and multi-die designs. "Synopsys' certified Custom Compiler and PrimeSim solutions provide the performance and productivity gains that enable our designers to meet the silicon demands of high-performance analog design on the Taiwan Semiconductor N2 process," said Ching San Wu, Corporate VP at MediaTek. In addition, Synopsys is collaborating with Taiwan Semiconductor on the new backside routing capabilities. Also Read: Taiwan Semi Secures $7.5B Boost for Arizona Expansion, Aims for Advanced Chip Production: Report The electronic design automation company supports the contract chipmaker's A16 process in the Synopsys digital design flow to address power distribution and signal routing for design performance efficiency and density optimization. "Our collaboration with Synopsys and Taiwan Semiconductor exemplifies our collective commitment to driving innovation and enabling the future of AI and multi-die chip design," said John Lee, vice president and general manager of the semiconductor, electronics, and optics business at Ansys Inc ANSS. Ansys and Taiwan Semiconductor recently collaborated with Microsoft Corp MSFT to speed up photonic chip simulations. Semiconductor stocks, including Synopsys and Taiwan Semiconductor stocks, are trading upwards Thursday in solidarity with Micron Technology, Inc.'s MU upbeat quarterly print. The semiconductor industry is riding high on the AI wave, and the U.S. Fed rate cuts are providing an additional tailwind for the sector. Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX. Price Actions: At the last check on Thursday, SNPS stock was up 0.90% at $514.95, and TSM stock was up 1.99% at $185.99. Market News and Data brought to you by Benzinga APIs

Synopsys and TSMC enhance AI chip design with advanced EDA, IP solutions By Investing.com

SUNNYVALE, Calif. - Synopsys Inc . (NASDAQ:SNPS) has announced a collaboration with Taiwan Semiconductor Manufacturing Company (TSMC) to deliver advanced Electronic Design Automation (EDA) and Intellectual Property (IP) solutions. These innovations are aimed at boosting compute performance and engineering productivity for AI and multi-die chip designs using TSMC's N2 and A16 processes. The partnership, which builds on decades of joint efforts, focuses on AI-driven EDA flows powered by Synopsys.ai. This suite is designed to improve quality of results and speed up the migration to new design nodes for industry leaders. Synopsys is also developing new backside power delivery capabilities for TSMC's A16 process to enhance power distribution and system performance. Together with Ansys (NASDAQ:ANSS), Synopsys and TSMC have introduced a multi-physics flow supporting CoWoS interposer packaging. This addresses thermal and power integrity challenges in multi-die designs. Moreover, Synopsys' 3DSO.ai system offers AI-driven analysis for maximum results, supporting TSMC's 3DFabric technology. The collaboration has led to the development of 40G UCIe, HBM4, and 3DIO IP on TSMC's advanced nodes, optimizing latency, power, performance, and area for next-generation semiconductor designs. Industry leaders have already adopted Synopsys' AI-driven EDA flows for their advanced chip designs on N2. MediaTek's Corporate VP, Ching San Wu, highlighted the performance and productivity gains enabled by Synopsys' Custom Compiler and PrimeSim solutions, which facilitate the design migration and optimization process for their System-on-Chips (SoCs). To further support design efficiency, Synopsys and TSMC have enabled cloud-based EDA tools through TSMC's Cloud Certification. This allows mutual customers to access cloud-ready EDA tools that integrate seamlessly with TSMC's advanced process technology. Addressing the multi-physics challenges of multi-die architectures, Synopsys, Ansys, and TSMC have developed a comprehensive system analysis flow. This collaboration aims to achieve golden signoff accuracy for chip, package, and system-level effects within the Synopsys design environment on TSMC technologies. Synopsys has also taped out a test chip utilizing TSMC's CoWoS interposer technology, which includes support for test, monitor, debug, and repair capabilities, ensuring multi-die package health during manufacturing and in-field operations. This collaboration is set to propel AI and multi-die chip design innovation, as stated in the press release statement. In other recent news, Keysight Technologies (NYSE:KEYS) announced its intention to acquire Synopsys, Inc.'s Optical Solutions Group. This move is expected to strengthen Keysight's software portfolio with advanced optical system design and simulation tools. The deal hinges on the successful completion of Synopsys' acquisition of Ansys, anticipated to close in the first half of 2025. In other developments, Synopsys Inc. launched ImSym, an imaging system simulator platform aimed at enhancing the development process for imaging products. The platform allows for comprehensive simulation of the entire imaging chain, potentially boosting efficiency up to 60 times compared to traditional methods. Synopsys also reported strong financial performance in the third quarter of 2024, with a 13% increase in revenue and a 27% growth in non-GAAP earnings per share (EPS), exceeding its targets. Deutsche Bank (ETR:DBKGn) maintained a Buy rating on Synopsys, attributing the strong performance to significant hardware sales and a 32% year-over-year rise in Intellectual Property (IP) revenue. Griffin Securities maintained a strong Buy rating on Synopsys, citing continued momentum in the company's Design Automation sector. Synopsys' full-year guidance for 2024 anticipates revenue between $6.105 billion and $6.135 billion, and non-GAAP EPS ranging from $13.07 to $13.12. These are among the recent developments for Synopsys. The strategic partnership between Synopsys Inc. and Taiwan Semiconductor Manufacturing Company (TSMC) leverages Synopsys' robust suite of Electronic Design Automation (EDA) tools and IP solutions, which are crucial for advancing AI and multi-die chip designs. As investors consider the implications of this collaboration on Synopsys' market position and financial performance, key metrics from InvestingPro provide valuable insights. Synopsys has been recognized for its impressive gross profit margins, which stand at 80.5% for the last twelve months as of Q3 2024. This is indicative of the company's efficiency and its ability to retain a significant portion of its revenue after the cost of goods sold has been accounted for. Additionally, the company's revenue growth over the same period is notable, at 26.26%, reflecting the increasing demand for its EDA and IP solutions in the rapidly evolving semiconductor industry. InvestingPro Tips highlight that Synopsys is trading at a high P/E ratio, currently at 51.79, which suggests that investors are willing to pay a premium for the company's earnings, expecting future growth. This is further substantiated by the fact that nine analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company's performance trajectory. Moreover, Synopsys is a prominent player in the Software industry, a status that could be further solidified by the latest developments with TSMC. The company's strategic initiatives are likely to enhance its competitive edge and could potentially impact its market valuation positively. Currently, the market cap of Synopsys stands at $78.2 billion, reflecting its significant stature in the market. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, providing a comprehensive look at Synopsys' financial health and market position. These tips can be accessed through the InvestingPro platform and may offer further guidance for those considering an investment in the company.

Ansys and TSMC boost AI-driven 3D-IC design efficiency By Investing.com

PITTSBURGH - Ansys (NASDAQ: NASDAQ:ANSS) and Taiwan Semiconductor Manufacturing Company (TSMC) have enhanced their collaboration to improve 3D integrated circuit (IC) design using artificial intelligence (AI), aiming to increase productivity and develop multiphysics solutions for semiconductor technologies. This partnership focuses on creating new workflows for analyzing 3D-IC, photonic, electromagnetic (EM), and radio frequency (RF) designs, which are crucial for high-performance computing (HPC), AI, datacenter connectivity, and wireless telecommunications. By integrating Ansys's optiSLang process integration and optimization software with RaptorX, a silicon-optimized EM solver, the companies have streamlined the design process, reducing the number of required EM simulations. This advance not only saves time but also lowers design costs and accelerates time-to-market for semiconductor products. Additionally, the collaboration between Ansys, TSMC, and Synopsys (NASDAQ:SNPS) has led to the development of an AI-assisted RF migration flow, which automates the process of transferring analog circuits between silicon processes. The partnership also addresses the reliability of advanced multi-chip manufacturing. TSMC has expanded its use of Ansys RedHawk-SC Electrothermal, a thermal and multiphysics signoff platform, to incorporate mechanical stress analysis and better meet the reliability analysis needs of their customers. Furthermore, the collaboration has enabled TSMC's compact universal photonics engine (COUPE), which stacks electronic chips atop photonic chips, by linking various physics capabilities. This integration includes Ansys Zemax OpticStudio and Lumerical FDTD for simulating photonic devices at different scales, as well as RedHawk-SC and Totem for power delivery network simulation. In light of TSMC's recent announcement of the A16 silicon process, which features innovative backside power contact and delivery technologies suitable for AI and HPC applications, Ansys is working with TSMC to provide accurate thermal analysis with RedHawk-SC Electrothermal. This collaboration aims to enhance performance, power efficiency, and ensure reliable design. Dan Kochpatcharin of TSMC emphasized the importance of design tools that comprehend complex multiphysics interactions to meet the computational demands of AI applications. John Lee of Ansys highlighted the broad range of technical solutions their multiphysics platform offers to meet customer needs. The information in this article is based on a press release statement. In other recent news, Ansys has seen a mix of developments. The company's second-quarter results exceeded revenue expectations by 10 percentage points, driven by two multi-year contracts in the automotive and high-tech/semiconductor sectors. Despite this, the Annual Contract Value (ACV) fell short of the company's target for double-digit growth. In response to these results, a Citi analyst increased the price target for Ansys from $332 to $339 while maintaining a Neutral rating. Ansys has also formed strategic collaborations with hardware firms Supermicro and NVIDIA (NASDAQ:NVDA), aiming to accelerate Ansys's multiphysics simulation capabilities. This joint effort is expected to result in significant speed improvements in computational tasks, enhancing the design exploration in diverse fields. In a significant move, Ansys announced the progression of its merger with Synopsys, a deal that is currently awaiting regulatory approval from China. This consolidation is anticipated to enhance the combined entity's capabilities and market reach. Furthermore, Ansys's STK product is now listed in the AWS Marketplace for the US Intelligence Community, allowing US government customers to easily acquire and deploy Ansys' simulation software. The company also introduced ConceptEV, a tool aimed at optimizing the design of electric vehicle powertrains, and launched Ansys Access on Microsoft (NASDAQ:MSFT) Azure, a service that enables customers to run Ansys's high-performance computing products on Azure's cloud infrastructure. In governance matters, Ansys shareholders elected three directors to the company's board and approved several key proposals, including the ratification of Deloitte & Touche LLP as Ansys's independent registered public accounting firm for 2024. As Ansys (NASDAQ: ANSS) continues to push the boundaries of innovation in collaboration with TSMC, the company's financial metrics reflect a robust business model. Ansys boasts an impressive gross profit margin of 91.95% over the last twelve months as of Q2 2024, showcasing its ability to maintain profitability while investing in advanced technology solutions. This margin is a testament to the company's efficient operations and strategic pricing power within the industry. Moreover, Ansys is trading at a high earnings multiple, with a P/E ratio of 56.01, indicating that investors are willing to pay a premium for its shares. This could be attributed to Ansys's strong market position and the potential growth prospects from its partnership with TSMC. The company has also demonstrated stability with low price volatility, which may appeal to investors looking for steady performers in the tech sector. For those keen on further insights, there are additional InvestingPro Tips available for Ansys, which provide a deeper analysis of the company's financial health and market performance. For instance, Ansys's liquid assets exceed its short-term obligations, highlighting a solid liquidity position that could support ongoing research and development efforts. With a moderate level of debt, Ansys maintains a balance between leveraging opportunities for growth and sustaining financial flexibility. Interested readers can find more such tips on the InvestingPro platform, specifically for Ansys at InvestingPro ANSS. The information provided here is designed to give investors a snapshot of Ansys's financial standing, which, when combined with the company's innovative strides in the semiconductor space, could be of significant interest to stakeholders and potential investors alike.