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SUNNYVALE, Calif. - Synopsys, Inc. (NASDAQ:SNPS), a prominent player in the software industry with an impressive market capitalization of $86.78 billion and industry-leading gross profit margins of 81%, announced Wednesday that TSMC has certified its Ansys portfolio of simulation and analysis solutions for use with TSMC’s most advanced manufacturing processes, including N3C, N3P, N2P, and A16 technologies. According to InvestingPro data, the company maintains a strong financial health score, positioning it well for continued innovation in the semiconductor design space.
The certification enables designers to perform accurate final checks on chip designs targeted for these advanced nodes. The companies have also collaborated on an AI-assisted design flow for the TSMC-COUPE platform, aimed at accelerating development for AI, high-speed data communications, and advanced computing applications. With a projected revenue growth of 15% for FY2025, Synopsys continues to demonstrate strong market momentum in these strategic initiatives.
The partnership includes the development of multiphysics analysis flows that combine Ansys RedHawk-SC, Ansys RedHawk-SC Electrothermal platform, and Synopsys 3DIC Compiler to enable hierarchical thermal-aware and voltage-aware timing analysis, which can help customers accelerate the convergence of large 3DIC designs.
For photonics design, Ansys optiSLang and Ansys Zemax OpticStudio software apply AI-assisted optimization to shorten design cycle times for optical coupling systems in TSMC’s COUPE architecture.
The certification covers multiple Ansys tools for various processes: RedHawk-SC and Totem for power integrity on N3C, N3P, N2P, and A16 processes; HFSS-IC Pro for electromagnetic modeling on N5 and N3P processes; and PathFinder-SC for electrostatic discharge validation on N2P process.
"TSMC’s advanced process, photonics, and packaging innovations are accelerating the development of high-speed communication interfaces and multi-die chips that are essential for high-performance, energy-efficient AI systems," said Aveek Sarkar, director of the ecosystem and alliance management division at TSMC, according to the press release.
The companies are also collaborating on design flow development for TSMC’s A14 process, with the first photonic design kit release scheduled for late 2025. For investors seeking deeper insights into Synopsys’s market position and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 12+ additional ProTips and extensive financial metrics that help decode the company’s true value proposition in the semiconductor industry.
In other recent news, Synopsys reported third-quarter revenue of $1.74 billion, falling short of some analysts’ expectations by about 4%. The results included $78 million from its recent acquisition of Ansys, contributing approximately 4% to the total revenue. Organic growth was noted at around 9%. Following these earnings, several analyst firms adjusted their outlooks for Synopsys. Piper Sandler lowered its price target to $630, citing disruptions in the company’s intellectual property (IP) business. KeyBanc also reduced its target to $590, describing the quarter as "messy and underwhelming." Needham followed suit, cutting its target to $550 due to perceived weakness in the IP segment. Additionally, Rosenblatt downgraded Synopsys from Buy to Neutral and set a new price target of $605, emphasizing the weaker-than-expected IP performance. Meanwhile, Synopsys continues its collaboration with TSMC, focusing on AI and multi-die solutions, which may play a role in future developments.
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