Silvaco appoints Wally Rhines as CEO as Babak Taheri departs

SANTA CLARA - Silvaco Group, Inc. (NASDAQ:SVCO), a semiconductor software company with a market capitalization of $134 million, announced that Dr. Babak Taheri has left his position as Chief Executive Officer effective August 19, 2025, after nearly seven years leading the company.

The board has appointed Walden "Wally" C. Rhines, Ph.D., as the new CEO, effective immediately. Rhines has served on Silvaco’s board of directors and audit committee since September 2022.

Taheri, who guided the company through its initial public offering, expressed pride in the company’s achievements. Despite the stock trading 73% below its 52-week high of $17.01, the company maintains impressive gross profit margins of 79%. "I am very proud of our successful IPO and the sustained double-digit growth over several years," he said in a statement.

Rhines currently serves as President and CEO of Cornami, Inc., and is Chairman of the board at Qorvo, Inc. (NASDAQ:QRVO). His previous experience includes serving as CEO of Mentor Graphics Corporation from 1993 until its acquisition by Siemens in 2017, after which he led Siemens EDA.

"Silvaco is at an exciting point in its market opportunity. We sit at the forefront of semiconductor design automation with a unique set of technology offerings," Rhines stated. According to InvestingPro analysis, the company maintains a healthy current ratio of 2.13, though faces challenges with cash burn rates.

Kathy Pesic, Co-Founder and Chair of the Board, expressed confidence in the leadership transition, acknowledging Taheri’s contributions to the company’s public listing and acquisitions.

Silvaco provides technology computer-aided design (TCAD), electronic design automation (EDA) software, and semiconductor intellectual property (SIP) solutions for the semiconductor industry. The company, which generated revenues of $55 million in the last twelve months, is headquartered in Santa Clara, California, with offices across North America, Europe, Asia, and other regions. For deeper insights into Silvaco’s financial health and growth prospects, including 8 additional ProTips, check out the comprehensive research report available on InvestingPro.

The information in this article is based on a company press release.

In other recent news, Silvaco Group has reported its second-quarter 2025 earnings, revealing a notable miss on both earnings per share and revenue forecasts. The company recorded an EPS of -$0.16, significantly below the anticipated $0.12, and revenue of $12.05 million, marking a 19% decline compared to the previous year. This performance has raised concerns among analysts, leading to adjustments in stock price targets. TD Cowen has lowered its price target for Silvaco Group to $8 from $10, citing execution concerns following the company’s June quarter results and revenue guidance that fell short of expectations. Similarly, Rosenblatt has reduced its price target to $12 from $14 after Silvaco’s Q2 revenue of $12 million missed their $15.4 million forecast. Despite the revenue miss, Silvaco’s trailing twelve-month Annual Contract Value base grew 26% year-over-year to $55.9 million, aided by acquisitions. Both TD Cowen and Rosenblatt have maintained a Buy rating on the company, indicating continued confidence despite the recent setbacks. These developments underscore the need for Silvaco to improve execution and clarify growth expectations to regain investor confidence.

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