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ANSYS (ANSS) Collaborates With TMSC to Optimize RF Chips

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ANSYS Inc. (ANSS - Free Report) has collaborated with Taiwan Semiconductor Manufacturing Company (“TMSC”) to leverage the TSMC N6RF Design Reference Flow to improve designing solutions for radio-frequency (RF) chips using the latter’s N6 process technology.

The companies plan to address the rising complexity in product design due to rapid adoption of Internet of Things (IoT) in the manufacturing industry by integrating N6RF process technology with ANSS platform. The TSMC N6RF Design Reference Flow is compatible with Ansys solutions, including Ansys RaptorX, Ansys Exalto, Ansys VeloceRF and Ansys Totem.

ANSYS, Inc. Price and Consensus

ANSYS, Inc. Price and Consensus

ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote

It will enable RF designers to provide improved connectivity and bandwidth while lowering wasteful over-design and enhancing radio frequency chips for 5G, Wi-Fi, and IoT. This, in turn, will ensure that enterprise customers achieve power and performance optimizations for 5G, Wi-Fi and IoT while boosting design productivity for faster time-to-market.

The current collaboration allows in-depth analysis of electromagnetic coupling and layout synthesis for coils, transmission lines and other inductive circuit components. It also supports circuit-under-inductor approaches, which can considerably lower an RF design's cost and size.

ANSYS plans to improve RaptorX and Ansys HFSS to accept TSMC's encrypted technology files. This will help the company to expand its advanced-node technology.

ANSYS develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia. Its performance is gaining ground from higher demand and solid traction for its simulation products across verticals like high tech, semiconductor, aerospace and defense.

The company’s collaborations with advanced technology suppliers, hardware vendors, specialized application developers, and CAD, ECAD and PLM providers is a key catalyst for future growth. ANSYS’ partnership with CAD vendors – Autodesk, PTC and Siemens – enables data transfer among the CAD systems and the company’s products.

The company has also teamed up with BMW Group, which will utilize its simulation tools to design robust AV technologies. It is also collaborating with Airbus Defence and Space to develop a new solution, which facilitates AI-driven, secure flight controls to design robust autonomous drone flight control solution by 2030. We remain impressed with the inherent growth potential of the stock and its future revenue-generating opportunities.

Shares of ANSYS have lost 26.4% in the past year compared with the industry’s fall of 9.9%.

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Zacks Rank & Stocks to Consider

ANSS carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology space are InterDigital Inc. (IDCC - Free Report) , Vishay Intertechnology Inc. (VSH - Free Report) and Avnet Inc. (AVT - Free Report) . InterDigital and Avnet currently sport a Zacks Rank #1 (Strong Buy), whereas Vishay Intertechnology holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $3.33 per share, increasing 46.05% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.13%. Shares of IDCC have declined 14.8% in the past year.

The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.

Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.96%. Shares of VSH have declined 19.2% in the past year.

The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.

Avnet’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 21.22%. Shares of Avnet have grown 6% in the past year.