SAN JOSE, Calif. – Cadence Design (NASDAQ:CDNS) Systems, Inc. (NASDAQ: CDNS) has announced a comprehensive collaboration with Samsung (KS:005930) Foundry to enhance semiconductor design processes, particularly for artificial intelligence (AI) and 3D-IC technologies.
The partnership focuses on utilizing Cadence's advanced tools and Samsung's cutting-edge gate-all-around (GAA) nodes, aiming to expedite the development of high-performance computing, automotive, aerospace, and mobile applications.
The collaboration has resulted in significant technological advancements, including a more than 10% reduction in leakage power for SF2 GAA test chips using Cadence.AI, as well as the successful tapeout of a 48GHz power amplifier design. Additionally, Cadence's backside implementation flow has been certified for Samsung's SF2 node, streamlining the development of sophisticated designs.
Cadence's Integrity™ 3D-IC platform is now enabled for all of Samsung's multi-die integration offerings, which includes thermal warpage analysis and system-level LVS. This is expected to optimize the design and assembly of stacked chiplets, a critical step in advancing multi-die integration technology.
Furthermore, the collaboration has facilitated the migration of analog circuits to advanced process nodes, with Cadence's Virtuoso Studio flow demonstrating a 10X improvement in turnaround time for a 100MHz oscillator design migration from 14nm to 8nm. Cadence's IP portfolio has also been expanded to include solutions for Samsung's advanced nodes, offering complete platform solutions with industry-leading PHY IP for various standards.
Samsung Foundry has implemented Cadence's advanced verification technologies, such as the Palladium Enterprise Emulation System and Xcelium ML, to address the increasing complexity of AI chip designs, helping to meet time-to-market demands.
The partnership underscores both companies' commitment to providing customers with the necessary tools and technologies to deliver competitive designs efficiently. This collaboration is based on a press release statement and represents an ongoing effort to push the boundaries of semiconductor technology.
Cadence, a leader in electronic systems design, continues to leverage its extensive software expertise to enable innovative electronic product development across diverse markets. The company's collaboration with Samsung Foundry is a testament to its role in shaping the future of intelligent system design.
In other recent news, Cadence Design Systems has been the focus of several key developments. The company has completed the acquisition of BETA CAE (NYSE:CAE) Systems International AG, a move expected to contribute approximately $40 million to Cadence's 2024 revenue.
BofA Securities has expressed a strong outlook for Cadence, raising its price target to $350 from $330 due to expected growth through 2025. However, Piper Sandler has lowered its price target from $334 to $318, maintaining a Neutral rating on the stock.
Moreover, Cadence and TSMC announced advancements in design technology aimed at accelerating semiconductor design for various applications. The collaboration has led to enhancements in 3D-IC platforms, process design kits (PDKs), and IP portfolios, optimized for TSMC's advanced 2nm process technologies.
These are recent developments that underline Cadence's commitment to its Intelligent System Design strategy and TSMC's dedication to providing high-quality design tools, as both companies continue to support the evolving needs of the semiconductor industry.
InvestingPro Insights
As Cadence Design Systems, Inc. (NASDAQ: CDNS) continues to foster its strategic partnership with Samsung Foundry, its financial metrics and market performance provide a lens into the company's current standing. With a robust market capitalization of $84.57 billion, Cadence signals a strong presence in the electronic design automation industry.
An impressive gross profit margin of 89.31% over the last twelve months as of Q1 2024 underlines the company's efficiency in managing its cost of goods sold, which is particularly noteworthy in the resource-intensive tech sector. This financial health is a crucial factor for sustaining and expanding collaborations like the one with Samsung Foundry.
InvestingPro Tips highlight Cadence's stock trading at a high earnings multiple, with a P/E ratio of 79.17 and an adjusted P/E ratio for the last twelve months of 80.98. This indicates that the market has high expectations for the company's future earnings growth, reflecting investor confidence which may be bolstered by strategic partnerships and technological advancements.
For investors and industry analysts seeking deeper insights, InvestingPro offers additional tips, such as the company's moderate level of debt and the capacity of its cash flows to cover interest payments. These insights suggest a balanced financial strategy that may support sustained investment in innovation and collaborative projects. For a comprehensive analysis and more InvestingPro Tips, visit https://www.investing.com/pro/CDNS. There are 16 additional tips available on InvestingPro that provide further context to Cadence's financial landscape and market performance.
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