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Will ANSYS' Extended Collaboration With TSMC Propel Top-Line Growth?

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ANSYS Inc (ANSS - Free Report) recently expanded its long-standing collaboration with TSMC to transform the semiconductor industry by leveraging artificial intelligence (AI) to advance multiphysics solutions to further develop semiconductor technologies and workflows for high-efficiency designs. 

The initiative will likely address the complexities of designing chips for modern applications like AI, high-performance computing (HPC), data center connectivity and wireless telecommunications. The partnership aims to streamline design workflows and boost productivity by analyzing 3D integrated circuits (IC), photonic, electromagnetic (EM) and radio frequency (RF).

3D-IC design involves integrating multiple layers of semiconductor components, each with distinct thermal, electrical and mechanical behaviors. These design challenges are time-consuming and require complex simulations to optimize performance. To fix these complications, the partnership is incorporating Ansys optiSLang - a process integration and optimization software - to automate the design flow. OptiSLang aids designers in rapidly detecting the most efficient design configurations by automating design processes and utilizing AI.

With the integration of optiSLang with Ansys RaptorX, a silicon-optimized EM solver, the solution dramatically reduces the number of EM simulations required, which is essential for optimizing channel designs within a shorter timeframe. This time-saving solution not only lowers design costs but also accelerates time-to-market, allowing designers to remain competitive in a fast-paced industry.

ANSS, TSMC & SNPS Solve Multiphysics Coupling Issues

An important part of the Ansys-TSMC collaboration involves addressing the coupling challenges between multiple physical phenomena, such as timing, thermal effects and power integrity. To tackle this problem, Ansys and TSMC joined forces with Synopsys (SNPS - Free Report) to develop an efficient flow that incorporates SNPS' 3DIC Compiler along with Ansys RedHawk-SC Electrothermal and Ansys RedHawk-SC. 

This holistic analysis workflow aids semiconductor manufacturers in addressing multiphysics coupling challenges and ensuring that their designs meet the stringent power, performance and area requirements necessary for advanced applications.

The tie-up between ANSS, SNPS and TSMC enabled a unique simulation flow for COUPE designs, integrating Ansys tools like Zemax OpticStudioand and Lumerical FDTD for simulating photonic devices at both the sub-wavelength and microlens scales. Additionally, RedHawk-SC and Totem are used for power delivery simulations, ensuring that the electrical integrity between photonic and electronic components is maintained.

The joint efforts of Ansys, TSMC and Synopsys are crucial for meeting the rising demands of next-generation semiconductor technologies. By integrating advanced simulation and analysis tools into every stage of the design process, the alliance is empowering semiconductor companies to deliver cutting-edge products and drive innovation.

ANSS’ Tie-Up With TSMC Fosters Growth & Innovation

The collaboration is likely to make significant strides in semiconductor design, driven by AI-assisted workflows and advanced multiphysics solutions. In April 2024, ANSS teamed up with TSMC for the development of multiphysics software for TSMC's COUPE. Recently, they joined forces with Microsoft to unlock the potential of silicon photonic integrated circuits by leveraging cloud-powered technologies.

Additionally, its continued innovation in the high-end design simulation software market is propelling top-line expansion. In the last reported quarter, ANSS’ revenues soared 20% year over year to $594.1 million, beating the Zacks Consensus Estimate by 7.9%. The upside was driven by two major multi-year contracts worth $210 million in the automotive and high-tech industries during the quarter in the Americas region. 

Ansys has not issued an outlook, given the pending acquisition by SNPS (announced in January 2024). The transaction has been approved by Ansys shareholders.

ANSS’ Zacks Rank & Stock Price Performance

ANSS currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 9.3% in the past year compared with the sub-industry’s growth of 32.2%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Harmonic Inc. (HLIT - Free Report) and Ubiquiti Inc. (UI - Free Report) . HLIT sports a Zacks Rank #1 (Strong Buy), whereas UI carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.

Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

 


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