Synopsys, Inc. (SNPS - Free Report) is benefitting from a strong uptick across all product groups plus large and expanded renewals with some key semiconductor companies. The company’s penetration into new and growing artificial intelligence (AI) chip companies is a major growth driver.
Further, with the growing need for enhanced security measures given the worsening security threats in interconnected systems laden with software, demand for the company’s solutions is shooting up.
Notably, the company’s investments in this high-growth market are helping it diversify its customer base in financial services and medical segments apart from extending its reach in the automotive and ramping up business with well-established electronics clients.
Growth across AI and automotive sectors is driving demand for the company’s IP products.
Expanding Efforts Bode Well
Recently, Synopsys partnered with GLOBALFOUNDRIES to develop a portfolio of IPs that will support high temperature operation on the latter’s 22-nm Fully-Depleted Silicon-On-Insulator (22FDX) technology.
The IP will help designers ease their design efforts and expedite the AEC-Q100 qualification of SoCs for automotive applications like eMobility, 5G connectivity, advanced driver assistance systems (ADAS) and infotainment.
Moreover, Fusion Design Platform, launched last November, is witnessing steep demand, which is aiding it to generate solid results. A strong progress in the company’s fusion technology and platform roll-out is driving EDA (Electronic design automation) revenues, which in turn, is boosting its top line.
The company recently announced that its Fusion Compiler RTL-to-GDSII implementation solution has been unveiled by Renesas Electronics Corporation to accelerate the development of the latter’s next-generation automotive designs. The Fusion Compiler will power Renesas’ high-performance automotive system-on-chips (SoCs) and mission-critical microcontrollers.
In the current economic scenario, as customers are strengthening their supplier relations and focusing on cost efficiencies, many have selected Synopsys as their primary EDA partner. Connections with companies, such as Advanced Micro Devices (AMD - Free Report) , Juniper Networks (JNPR - Free Report) , Realtek, Teradici, NetLogic Microsystems, Toshiba and Wolfson stand as a clear evidence.
Notably, the newly-introduced updated version of Synopsys’ IC Validator NXT has already been successfully deployed in the cloud by multiple customers to address their dynamic tapeout schedules.
However, the company faces a tough competition from EDA vendors, namely Cadence Design Systems (CDNS - Free Report) and Mentor Graphics Corporation, which is n overhang on the company.
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