Silvaco Group (SVCO) 28th Annual Needham Growth Conference Virtual summary

Business overview and product lines

• Operates in three main segments: TCAD (core, ~50% of revenue), EDA, and IP, with IP expected to drive near-term growth.

• TCAD is a highly specialized, sticky business with complex simulation software for manufacturing processes.

• EDA and IP together make up the other half of the business, with EDA focused on niche markets and IP poised for expansion.

AI and digital transformation strategy

• AI is central to long-term growth, especially in manufacturing, enabling virtual prototyping and digital twins.

• Collaborated with Micron to develop AI-driven Fab Technology Co-Optimization (FTCO), now expanding to other customers.

• Transition to AI-based solutions is gradual, requiring deep customer engagement and resource allocation.

Market positioning and competitive strategy

• Focuses on niche segments where it can be a dominant or sole provider, such as TCAD for display manufacturing.

• Maintains recurring revenue from established customer base and targets specialty areas overlooked by larger competitors.

• Growth strategy includes leveraging unique capabilities and expanding in areas like power device simulation and AI-driven process development.