Silvaco partners with Faraday for automotive ASIC design

SANTA CLARA, Calif. - Silvaco Group, Inc. (NASDAQ: SVCO), a semiconductor design software provider with impressive gross profit margins of nearly 80%, has announced a partnership with Faraday Technology Corporation (TWSE: 3035), wherein Faraday will utilize Silvaco’s FlexCAN IP for its new automotive ASIC design. This collaboration is aimed at enhancing network capabilities in next-generation vehicles. According to InvestingPro analysis, Silvaco appears undervalued based on its Fair Value estimates, with analysts projecting profitability in the coming year.

The FlexCAN controller by Silvaco adheres to the ISO 11898-1 standard and supports the CAN Flexible Data Rate (CAN-FD) for efficient data exchange within vehicle systems. The Controller Area Network (CAN) is an established communication protocol used in vehicles to connect various subsystems. InvestingPro data reveals that Silvaco maintains a strong financial position with a current ratio of 3.11, indicating robust liquidity to support its technological initiatives.

C.H. Chien, Vice President of R&D at Faraday, emphasized the company’s commitment to addressing market needs by delivering high-performance and reliable networking in automotive ASIC solutions. He stated that Silvaco’s FlexCAN IP aligns with Faraday’s goals of innovation and excellence.

The FlexCAN controller is designed to meet the demands of modern vehicles, which are experiencing a significant increase in edge processing and distributed sensing. Ben Louie, VP & General Manager of the IP Business Unit at Silvaco, remarked on the growth of electronic content in vehicles and expressed confidence in the FlexCAN’s role as a fundamental component for automotive networking.

Silvaco, headquartered in Santa Clara, California, provides technology computer-aided design (TCAD), electronic design automation (EDA) software, and semiconductor IP (SIP) solutions. The company’s offerings facilitate semiconductor design and AI integration across various market sectors, including automotive and high-performance computing. For detailed insights into Silvaco’s financial health and growth prospects, investors can access comprehensive Pro Research Reports available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

The partnership between Silvaco and Faraday underscores the ongoing evolution of vehicle technology and the importance of robust networking solutions to support advanced automotive systems. The information for this article is based on a press release statement.

In other recent news, Silvaco Group Inc. reported impressive financial results for the fourth quarter of 2024, with earnings per share (EPS) reaching $0.15, significantly surpassing the forecast of $0.08. The company’s revenue for the quarter was $17.9 million, marking a 43% increase from the previous year. Silvaco also ended the year with cash reserves totaling $87.5 million. Amid these developments, the company announced the resignation of Chief Financial Officer Ryan Benton, with Keith Tainsky stepping in as Interim CFO. Silvaco has reaffirmed its financial guidance for 2025, projecting revenue between $66 million and $72 million. The company is also targeting a non-GAAP gross margin of 84-89% and operating income between $2 million and $7 million for the year. Furthermore, Silvaco recently acquired Cadence’s Optical Proximity Correction product line, expanding its capabilities in semiconductor manufacturing. This acquisition is expected to modestly contribute to revenue in 2025, with more significant impacts anticipated in the following years.

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