Cadence expands Samsung Foundry collaboration with new IP agreement

SAN JOSE - Cadence Design Systems (NASDAQ:CDNS), a technology giant with an $82.3 billion market capitalization and "GOOD" financial health according to InvestingPro, has expanded its collaboration with Samsung Foundry through a new multi-year intellectual property agreement and joint development of AI-driven design flows for advanced process nodes, according to a press release issued Monday. While currently trading above its Fair Value, the company maintains impressive gross profit margins of 85.86%.

The expanded partnership includes broadening Cadence’s memory and interface IP solutions for Samsung’s SF4X, SF5A and SF2P advanced process nodes. The companies are leveraging Cadence’s AI-driven design solutions alongside Samsung’s process technology to develop solutions for AI data centers, automotive applications including advanced driver-assistance systems, and next-generation RF connectivity. This strategic move aligns with Cadence’s strong business performance, demonstrated by a 19.55% revenue growth in the last twelve months.

The new multi-year IP agreement will deliver advanced memory and interface IP solutions targeting high-performance computing applications. The expanded SF4X IP portfolio includes LPDDR6/5x-14.4G, GDDR7-36G, DDR5-9600, and various other interface technologies.

Cadence’s digital full flow has been certified for Samsung’s latest SF2P process node, including support for Samsung’s Hyper Cell methodology. The companies have also successfully automated the migration of analog cell-based 4nm IP to the 2nm process node.

"By combining Cadence’s AI-driven design and silicon solutions with Samsung’s advanced processes, we’re delivering the leading-edge technologies our mutual customers need to innovate and bring their products to market faster," said Boyd Phelps, senior vice president and general manager of the Silicon Solutions Group at Cadence.

Hyung-Ock Kim, vice president at Samsung Electronics, noted that Cadence’s suite of digital tools is now certified for Samsung’s latest SF2P process node, supporting advancements like Hyper Cell and LLE 2.0 technologies.

The collaboration also includes comprehensive power integrity analysis for 3D-ICs and a Front-End Module/Antenna-in-Package co-design flow for next-generation mmWave applications based on Samsung’s 14nm FinFET process. For investors seeking deeper insights into Cadence’s technological capabilities and financial outlook, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed metrics and expert analysis of the company’s competitive position in the semiconductor industry.

In other recent news, Cadence Design Systems, Inc. reported first-quarter revenues for 2025 of approximately $1.242 billion, a 23% increase from the previous year, slightly surpassing projections. This growth is attributed to new hardware offerings, an expansion in the Systems business, and strong intellectual property sales. Additionally, Cadence announced it will offer engineering design solutions on a new industrial AI cloud developed with NVIDIA, which will utilize 10,000 NVIDIA Blackwell GPUs. The company also launched the Tensilica NeuroEdge 130 AI Co-Processor, designed to enhance neural processing unit performance with significant area and power savings.

Cadence introduced the Millennium M2000 Supercomputer, integrated with NVIDIA technology, aiming to significantly enhance simulation speeds for various workloads. In regulatory news, Cadence is seeking clarification on new export controls to China, which may impact its business with Chinese military end users. Meanwhile, Rosenblatt Securities raised its price target for Cadence to $300, maintaining a Neutral stance, following the company’s strong financial performance and strategic expansion efforts. Cadence’s ongoing innovation in AI and digital twin technology continues to drive its growth and influence in the engineering design sector.

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