) has announced a particularly big deal win at the world's second
largest semiconductor foundry, GLOBALFOUNDRIES.
GLOBAlFOUNDRIES has been seeing some yield issues in recent
times, particularly in situations of technology transition to
smaller process geometries. This could be the reason it selected
the Synopsys Yield Explorer.
This technology could be used for correction of systematic
failure mechanisms, which is critical in enhancing the efficiency
of the production process and driving the yield of new integrated
circuits. This new technology is capable of reducing production
bottlenecks and would therefore also increase cost
In the current economic scenario, as customers are strengthening
their supplier relationships and focusing on cost efficiencies,
many have selected Synopsys as their primary EDA partner.
Evidence of this is borne out by the further extension of
relationships with companies such as
Realtek, Teradici, NetLogic Microsystems, Toshiba
. The stability of shared visions that are a part of these deep
relationships with vendors and customers will be critical to
driving the innovation and technology roadmaps for the company in
Apart from securing new business orders, the company is also
focusing on introducing new products. Synopsys has also made a few
strategic acquisitions to strengthen its product portfolio and
improve its profitability.
Improved operating performance and cost-control steps enabled
Synopsys to report an encouraging fourth quarter. The first quarter
2011 guidance is also encouraging.
The company is focusing on its operating performance and
cost-control measures, which enabled Synopsys to report an
encouraging fourth quarter. The company also announced the
acquisition of Magma Design Automation Inc., a chip design software
manufacturer, which is expected to boost profitability.
Synopsys' product innovation strategy, the popularity of its
time-based license model and its strong cash position make us
optimistic about Synopsys. Although Synopsys is gaining traction
from new products and acquisitions, we believe these will take some
time to produce favorable results. Besides, the company is also
facing competition from
Cadence Design Systems
Synopsys currently has a Zacks #2 Rank (short-term Buy
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