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.
InvestingPro Insights
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.
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