Siemens inks deal with Alphawave for high-speed IP offerings

PLANO, Texas - Siemens (ETR:SIEGn) Digital Industries Software (ETR:SOWGn), part of the €65.7 billion market cap technology giant with a "GOOD" financial health rating according to InvestingPro, has entered into an exclusive OEM agreement with Alphawave Semi to market the latter’s high-speed interconnect silicon IP through Siemens’ sales channels. This partnership will provide customers with Alphawave Semi’s leading IP platforms for connectivity and memory protocols, including Ethernet, PCIe, CXL, HBM, and UCIe (Die-to-Die) implementations.

The collaboration aims to expedite customer access to Alphawave Semi’s AI-driven silicon IP platforms, which are critical for technology growth markets such as AI, autonomous vehicles, data networking, hyperscaling, and storage. These markets increasingly rely on 3D-IC designs, chiplets, and advanced manufacturing nodes. With Siemens reporting annual revenue of $23.5 billion and maintaining steady 4.1% growth, this partnership signals significant market potential.

Mike Ellow, CEO of Siemens EDA, Siemens Digital Industries Software, stated that the integration of Alphawave Semi’s silicon IP would empower customers to make significant advancements across various industries within dramatically shortened timescales. Alphawave Semi is recognized for its high-speed connectivity IP, including 112G and 224G SERDES chip designs, which are essential for data transmission and reliability while minimizing power consumption for designs in 7nm, 6nm, 5nm, and beyond.

Tony Pialis, president and CEO of Alphawave Semi, highlighted the importance of their technologies in reducing interconnect bottlenecks and expressed that the agreement with Siemens would simplify and accelerate the development of system-on-chip (SoC) solutions for leading-edge technologies.

Siemens will offer Alphawave Semi’s portfolio of PHY IP, Controller IP, and Subsystems platforms, optimized for advanced technology nodes. These offerings are designed to address the demand for custom silicon and chiplet-based ASICs in high-growth markets such as AI, HPC, and Networking.

The collaboration between Siemens and Alphawave Semi’s sales and solutions teams will provide a comprehensive solution stack from initial concepts to finished production parts, with flexible business models for various customer categories.

This strategic agreement is expected to expand customer reach and enable more companies to deliver advanced data processing capabilities. Analysts maintain a bullish outlook on Siemens, with price targets ranging from $50.86 to $71.72, suggesting potential upside. The company also offers a reliable 1.64% dividend yield, having maintained dividend payments for 31 consecutive years. The information for this article is based on a press release statement and InvestingPro data, where subscribers can access additional financial metrics and analysis.

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