The Six Five team discusses Synopsys At DAC
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Transcript:
Patrick Moorhead: The announcements Synopsys made at DAC. You may be like, “DAC?” DAC is the Design Automation Conference, it’s been out there forever, it’s essentially all about EDA related to chip design, platform design and end product design. It makes perfect sense for companies like Synopsys and Cadence, and companies like this to go to. And I would say… So first of all, it was reaffirmation of what the company is doing well, and also I would say reinforcing why Ansys is a great acquisition. You can’t build a chip or a chip fab without it, and you can’t build a system without EDA or design tools. One of the things that popped out, it’s so funny, you see how companies say things without saying it because they really need to watch how they do that. And there was a little blurb in their blog or press release that talked about AMD and NVIDIA cranking out a new AI processor every year.
Going from… And the punch line I think is Synopsys. And again, I don’t know where Cadence fits in this. But it was really cool how nobody had spotted that, and when Jensen got up on stage and AMD made a little of announcement on going to an annual Cadence, it’s design tools. They’re not adding 10,000 designers, what they’re doing is they’re leveraging AI capabilities of what companies like Synopsys are doing with their AI-related design tools. So there was some news here, and that’s that Synopsys.AI is fully qualified for Intel’s IFS’ EMIB packaging technology. And by the way, they already do Foveros, so that’s included, I think the company should have pointed that out. And that’s on the follow on and getting certified Synopsys.AI for Samsung’s two nanometer GAA process. So it’s just fascinating to see how quickly this is moving.
And it’s funny, Dan, you and I have gone to these enterprise SaaS companies, and we’re like, “What customers? How much money did you save?” I feel very confident saying I’ve seen the best examples from Synopsys. So again, I’m looking at a slide right now, 13 X improvement in verification, 10 X improvement in design, 15 X advancement in simulation, 15 X improvement in manufacturing through computational lithography. With examples, NVIDIA L40, NVIDIA Grace Hopper, NVIDIA Grace Hopper, NVIDIA cuLitho, NVIDIA DGX. And it’s really cool to see from an EDA company, in this particular one, it’s about silicon because they haven’t bought Synopsys yet, sorry Ansys yet, but to see the benefits and be rolling up there. Now, I’d love to talk to some of these customers. In fact, I would love to do a Signal65 economics analysis across multiple customers to validate these claims. Anyways, great show for Synopsys. I’m getting the download from Cadence a little bit later, I just haven’t had the time to dive in there yet.
Daniel Newman: Yeah, you hit a lot of the high notes, Pat. I mean, I think this summary, the TLDR here, is that we’re not going to get yearly massive generational improvements without efficiencies coming from partners like Synopsys. So when you hear Jensen touting a roadmap at the NTU, at Computex, and everybody gets excited, and when you see these market models that show annual upgrades and the hyperscalers making massive investments generation to generation. They need tools, they can get these things verified faster, they can get them simulated, tested, designed and out the door. And Synopsys is building some of the most powerful tools in the market to be able to accomplish that, Pat. So that was really the focus that I saw here. This has been something that you and I have been talking about for a while.
If I could be a little silly for a minute, I really hate the name cuLitho, it looks like the Spanish word for something that’s in your rear. I don’t know what they were thinking with that one, that seemed like a miss to me. Sorry, I couldn’t help myself when you said that. I think we’re all pronouncing it C-U Litho, because we don’t even want to say it out loud. But look, I mean, these results can’t be argued with, double-digit efficiency and performance gains that companies… And like I said, right now, doing this alongside NVIDIA is pretty much the… There’s just not really a better testimonial you can have in the market for what you are trying to accomplish. Of course, certified across NVIDIA, and AMD, and Intel, it gives them the platform, and adding all these generative capabilities, documentation, etc, it’s very, very powerful, Pat.
So I think you hit on most of it here, so I’m going to just give you the wave and say good job. And obviously Synopsys, there’s a reason you’re growing so fast, there’s a reason that the market’s been incredibly excited about you. And by the way, going back to how I started talking about first, second, and third network effects, this is definitely a upstream first network effect of the AI boom because somebody needs to be expediting the design, and verification, and validation for these companies, and Synopsys is helping them do that.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
