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SANTA CLARA, Calif. - Silvaco Group, Inc. (Nasdaq: SVCO), a software provider for semiconductor design, announced the acquisition of the Process Proximity Compensation (PPC) product line from Cadence (Nasdaq: CDNS), a leading technology company with impressive gross profit margins of 86% and a market capitalization of $66 billion. This move aims to bolster Silvaco’s capabilities in computational lithography and enhance its existing electronic design automation (EDA) and technology computer-aided design (TCAD) offerings.
The addition of Cadence’s optical proximity correction (OPC) tools is expected to strengthen Silvaco’s market position and improve its ability to deliver advanced solutions for semiconductor manufacturing at finer nodes. CEO of Silvaco, Babak Taheri, emphasized that the acquisition aligns with the company’s strategy to advance its AI-based full-flow computational platform and support customers in creating more precise and efficient semiconductor processes and devices.
Chin-Chi Teng, senior vice president at Cadence, expressed confidence that the PPC team’s integration into Silvaco would further develop next-generation computational lithography solutions. According to InvestingPro data, Cadence maintains strong financial health with a 13.5% revenue growth over the last twelve months, suggesting robust operational performance. Silvaco plans a seamless transition that will maintain service continuity for existing PPC customers and projects.
The acquisition is also anticipated to unlock new market opportunities for Silvaco and foster deeper customer collaborations. Silvaco’s commitment to responsive customer support and expanded research and development is expected to drive technology development and adoption among OPC’s current clientele.
Silvaco’s 2024 performance marked a record year for bookings and revenue, with growth driven by the demand for its digital twin modeling platform and key semiconductor markets. The company anticipates that the integration of the PPC product line will contribute to continued value delivery for customers and stakeholders throughout 2025. For deeper insights into semiconductor industry leaders like Cadence, InvestingPro subscribers can access comprehensive financial analysis, including 18+ additional ProTips and detailed valuation metrics in the Pro Research Report.
Silvaco, headquartered in Santa Clara, California, operates globally and offers solutions across a range of semiconductor and photonics applications in various markets, including automotive, memory, and 5G/6G mobile technologies. The information in this article is based on a press release statement.
In other recent news, Cadence Design (NASDAQ:CDNS) Systems reported a strong fourth quarter for 2024, with earnings per share (EPS) of $1.88, surpassing the expected $1.82, and revenue of $1.356 billion, exceeding forecasts. The company announced a 13.5% revenue growth for the full year, driven by its AI-powered products. Piper Sandler raised Cadence’s price target to $328, acknowledging an 11.6% revenue growth forecast for 2025, although slightly below consensus estimates. KeyBanc maintained its Overweight rating with a $355 target, noting a record $6.8 billion backlog, suggesting potential for Cadence to exceed its conservative guidance. Loop Capital adjusted Cadence’s price target to $340, citing a strong fourth quarter performance despite a lower-than-expected 2025 forecast. Rosenblatt increased the price target to $295, attributing the positive earnings to a robust verification hardware cycle and expanding systems business. Cadence’s cautious approach to China revenue, expecting it to remain flat, was a common theme across analysts’ reviews.
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