Synopsys Strengthens Samsung Partnership Amid China Delays, Reports Strong Q2 Revenue

June 16, 2025
Synopsys Strengthens Samsung Partnership Amid China Delays, Reports Strong Q2 Revenue
  • Synopsys has announced a strengthened collaboration with Samsung Foundry aimed at advancing AI and multi-die design technologies, highlighted by the successful tape-out of an HBM3 design using their SF2 process.

  • As part of this partnership, Synopsys has introduced a range of optimized IP, including 224G, UCIe, MIPI, and LPDDR6, to support next-generation designs and mitigate integration risks for customers.

  • This collaboration is designed to expedite the time-to-market for complex designs while minimizing integration challenges for mutual customers.

  • Despite facing regulatory hurdles, Synopsys reported a robust second-quarter revenue of $1.604 billion, marking a 10.2% year-over-year increase and surpassing analyst expectations.

  • However, the company's outlook has been complicated by China's market regulator delaying the approval of its $35 billion merger with Ansys, adding to operational challenges.

  • In light of these challenges, Synopsys has suspended its financial guidance for the third quarter and the full fiscal year of 2025 due to new U.S. export restrictions related to China.

  • John Koeter from Synopsys highlighted that the increasing demand for Edge AI applications is driving advancements in semiconductor technology across various industries.

  • The expanded IP portfolio includes advanced memory solutions tailored for AI and automotive applications, featuring technologies like LPDDR6, GDDR7, and PCIe 6.0.

  • Additionally, Synopsys demonstrated successful interoperability of its PCIe 6.x IP solution with Broadcom’s PEX90000 series switch, showcasing ongoing technological advancements.

  • In collaboration with Cadence, power integrity analysis for 3D-ICs has achieved significant reductions in IR-drop violations, balancing performance and power needs effectively.

  • The partnership also automates the migration of analog designs from a 4nm IP to a 2nm process node, aiding in reducing development time and costs.

  • Despite market uncertainties, Stifel analysts have maintained a Buy rating on Synopsys shares with a price target of $550, reflecting confidence in the company's performance.

Summary based on 7 sources


Get a daily email with more AI stories

More Stories