Silvaco Group (SVCO) Rosenblatt’s 4th Annual Technology Summit - The Age of AI (Part II) summary

Strategic direction and market positioning

• Focus on enabling both semiconductor design and manufacturing through AI-driven digital twin modeling, expanding beyond traditional EDA design focus.

• Core markets include display technologies, power semiconductors, memory products, automotive, HPC, IoT, and 5G/6G.

• TCAD business unit is the main revenue driver, accounting for 69% of business, with EDA at 20% and IP at 11%.

• Only two companies globally offer a full TCAD platform; aiming to become the market leader.

• Revenue is primarily derived from advanced R&D projects, supporting innovation in displays, power devices, and memory.

Product innovation and technology

• Fab Technology Co-Optimization (FTCO) product leverages digital twins and AI to optimize semiconductor manufacturing, reducing the need for costly prototyping.

• FTCO enables fabs to improve yield, lower costs, and accelerate time-to-market by simulating process changes virtually.

• Successfully deployed with Micron, resulting in a five-year contract and $5 million investment.

• Plans to expand FTCO to power and advanced CMOS markets, addressing challenges in silicon carbide and sub-7nm nodes.

• Estimated serviceable addressable market (SAM) for FTCO is $500 million, expanding the industry’s total addressable market.

AI integration and future outlook

• AI is applied to simplify user interfaces, optimize complex simulations, and manage massive fab data sets.

• AI reduces simulation requirements by up to 100x, enhancing efficiency for designers.

• Digital twin models powered by AI help fab operators focus on key parameters, improving yield and process control.

• Full AI-driven design automation is seen as a decade away, but current applications already deliver significant value.