SUNNYVALE, Calif. - Synopsys Inc . (NASDAQ: NASDAQ:SNPS) and Samsung Electronics (KS:005930) have achieved a significant milestone in advancing the design of artificial intelligence (AI) and high-performance computing (HPC) chips.
Synopsys announced today that its AI-driven digital and analog design flows are now certified on Samsung Foundry's advanced SF2 process. This development follows a series of successful test chip tapeouts, indicating the product readiness of both digital and analog design flows for this process.
The collaboration has led to notable gains in performance, power, and area (PPA) optimization for Samsung's Gate-All-Around (GAA) process technologies. By leveraging Synopsys' design technology co-optimization (DTCO) solution, the SF2 process has shown a 12% increase in performance, a 25% reduction in power consumption, and a 5% reduction in chip area when compared to base designs without AI optimization.
Sanjay Bali, the vice president of product management and strategy at Synopsys, emphasized the importance of ecosystem collaboration in meeting the design requirements of custom system-on-chips (SoCs) for the era of pervasive intelligence. The certified design flows and proven Synopsys intellectual property (IP) offer a reliable path for designers to achieve aggressive goals and accelerate market entry.
Sangyun Kim, Vice President and head of Foundry Design Technology Team at Samsung Electronics, acknowledged the long-standing partnership with Synopsys and the shared objective to satisfy the industry's increasing demands for high-performance computing capabilities.
The joint efforts have also resulted in a new analog design migration reference flow, facilitating the transition of Samsung's 8nm analog IPs to the SF2 process. Additionally, innovative design techniques such as backside routing and nanosheet cell design have been introduced, enabling up to a 20% area reduction for the SF2Z process technology.
Synopsys' comprehensive IP portfolio for Samsung's processes, from standard to automotive grade, aims to provide chipmakers with a competitive edge by minimizing integration risks. The portfolio includes a wide range of silicon-proven interface IPs for commonly used protocols, as well as robust die-to-die connectivity solutions for multi-die packages.
Furthermore, Synopsys' 3DIC Compiler has been qualified for the SF2 process, supporting Samsung's advanced silicon processes and packaging technologies. This tool serves as a unified platform for the development of multi-die designs, facilitating the exploration-to-signoff process for 2.5D and 3D heterogeneous integration.
This announcement is based on a press release statement and underscores the ongoing commitment of Synopsys and Samsung to propel the semiconductor industry forward through AI-driven innovation and collaboration.
In other recent news, Synopsys Inc. has announced the launch of the first complete PCIe 7.0 IP solution, a significant development in data transfer technology for AI and high-performance computing data centers. In addition, the company has reported a 15% year-over-year increase in revenue to $1.45 billion for the second quarter of fiscal year 2024, and non-GAAP earnings per share surged by 26%. This strong performance has led to an increase in the company's full-year revenue and non-GAAP EPS forecasts.
Synopsys also announced the sale of its Software Integrity Group, expected to close in the second half of 2024. The company's Design Automation sector has seen a significant increase in backlog, indicating a higher number of contracts and orders. Analysts from Griffin Securities and Deutsche Bank anticipate this trend to continue due to the foundational role that electronic design automation plays in the tech industry.
In terms of analyst ratings, Synopsys received a reiterated Buy rating from Griffin Securities and Deutsche Bank, with price targets of $650 and $645 respectively. Piper Sandler also showed confidence in the company by increasing its price target to $672 and maintaining an Overweight rating. These recent developments indicate a promising outlook for Synopsys.
InvestingPro Insights
As Synopsys Inc. (NASDAQ: SNPS) continues to innovate in the semiconductor space with its AI-driven design flows, the financial metrics reflect a company with notable strengths. According to InvestingPro data, Synopsys boasts a substantial market capitalization of $90.73 billion, underscoring its significant presence in the industry.
The company's gross profit margin for the last twelve months as of Q2 2024 is particularly impressive at 80.39%, which aligns with one of the InvestingPro Tips highlighting Synopsys' impressive gross profit margins. This financial robustness is a testament to the company's ability to maintain profitability while investing in advanced technologies like those used in the collaboration with Samsung Electronics.
Moreover, Synopsys has demonstrated strong revenue growth, with an increase of 25.53% over the last twelve months as of Q2 2024, indicative of the company's successful expansion and adoption of its technologies in the market. This growth trajectory is further supported by the positive revision of earnings estimates by 10 analysts for the upcoming period, a factor investors often consider as a bullish signal for the company's future performance. The InvestingPro Tips also commend Synopsys as a prominent player in the Software industry, which is reflected in its strategic partnerships and continuous product development.
While Synopsys is trading at a high earnings multiple with a P/E ratio of 63.14, this may reflect the market's confidence in the company's future growth prospects, particularly in light of its recent technological achievements and strong financials.
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