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A collaborative approach with Synopsys Inc. (SNPS - Analyst Report) has helped MICRONAS to develop digital solutions for the design and verification of semiconductors used in the automobile industry. Micronas has leveraged Synopsys' technical expertise for custom and industrial applications.

The Synopsys solution has been included in products such as Galaxy Custom Designer for custom IC design, HSPICE for circuit simulation, StarRC for gate-level and transistor-level extraction, IC Compiler for place and route, IC Validator for physical verification and VCS for functional verification.

Synopsys has also collaborated with ARM to optimize the performance of its processors. Collaborations have helped the company strengthen its product portfolio and improve the design quality of its custom integrated circuits, which has in turn helped its sales. Apart from collaborations, the company’s acquisitions are aimed at improving business, which is evident from the acquisition of the privately held software maker ExpertIO Inc.

According to technology research firm Gartner Inc. (IT - Snapshot Report), worldwide spending for wafer fab equipment will decline 13.3% year over year in 2012 and 0.8% in 2013. However, the firm predicts a 15.3% increase in semiconductor spending in 2014. This keeps the long-term business prospects intact for the company.

Apart from the companies mentioned above, Synopsys is also extending its relationships with companies such as Juniper Networks (JNPR - Analyst Report), Cisco Systems (CSCO - Analyst Report), Realtek, Teradici, NetLogic Microsystems and Toshiba. The stability of the collaborative approach, which strengthens its relationship with vendors and customers, will be critical in driving the innovation and technology roadmaps for the company in the future.

Though competition from Cadence Design (CDNS) remains a matter of concern, the implementation of the cost control measures is boosting Synopsys’ operating performance.

Synopsys is gaining traction from new products and acquisitions, which is reflected in its first-quarter results.

Synopsys currently has a Zacks Rank #1 (Strong Buy).

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