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SUNNYVALE - Synopsys, Inc. (NASDAQ:SNPS), a prominent player in the software industry with an impressive market capitalization of $86.8 billion, announced Wednesday its ongoing collaboration with TSMC to deliver multi-die solutions supporting TSMC’s advanced processes and packaging technologies. According to InvestingPro data, the company maintains robust gross profit margins of 81%, demonstrating strong operational efficiency.
The partnership has enabled certified digital and analog flows on TSMC’s N2P and A16 processes using TSMC NanoFlex architecture. Synopsys’ 3DIC Compiler platform and 3D-enabled IP have resulted in multiple customer tape-outs using advanced 3D stacking and CoWoS packaging technologies. With annual revenue of $6.4 billion and a healthy revenue growth of 8%, Synopsys continues to strengthen its market position.
The collaboration includes AI-optimized photonic flow for TSMC Compact Universal Photonic Engine (TSMC-COUPE) technology, addressing multi-wavelength and thermal requirements in multi-die designs.
Synopsys has also made available its IP portfolio on TSMC N2/N2P processes, optimized for low power consumption. The company provides automotive IP solutions for TSMC N5A and N3A processes along with interface and foundation IP solutions.
"Our close collaboration with TSMC continues to empower engineering teams to achieve successful tape outs on the industry’s most advanced packaging and process technologies," said Michael Buehler-Garcia, Senior Vice President at Synopsys.
Aveek Sarkar, Director of the Ecosystem and Alliance Management Division at TSMC, noted that the collaboration helps customers achieve "high quality-of-results and faster time-to-market for leading-edge SoC designs."
Synopsys’ IC Validator signoff physical verification solution is certified for TSMC A16 process to support DRC and LVS checking. The company is also collaborating with TSMC on design flow development for TSMC’s A14 process, with its first process design kit release scheduled for late 2025.
The announcement was made in a press release issued by Synopsys.
In other recent news, Synopsys reported third-quarter revenue of $1.74 billion, falling short of the consensus estimate of $1.77 billion. The company’s adjusted earnings per share were $3.39, missing the expected $3.80. Analysts from Piper Sandler, KeyBanc, Needham, and Stifel lowered their price targets for Synopsys, citing challenges in the company’s intellectual property (IP) business. Piper Sandler set a new target of $630, KeyBanc adjusted theirs to $590, and Needham and Stifel both reduced their targets to $550. Rosenblatt also downgraded Synopsys from Buy to Neutral, setting a price target of $605, due to weaker-than-expected performance in the IP business. The company’s recent acquisition of Ansys contributed $78 million to the total revenue, accounting for about 4% of the total. Despite these challenges, Synopsys maintained a Buy rating from Needham and Stifel, while Piper Sandler and KeyBanc kept an Overweight rating. These developments highlight the company’s mixed quarter and the potential impact on future performance.
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