Synopsys (SNPS) Rosenblatt's 4th Annual Technology Summit: The Age of AI summary

AI strategy and product evolution

• AI journey began in 2017, leading to the launch of DSO.ai in 2020, now with over 400 commercial tapeouts.

• AI solutions have expanded from digital design to verification, test, and analog, delivering significant productivity and efficiency gains.

• Generative AI is being leveraged both to enhance customer tools and drive internal productivity, including the rollout of Synopsys.ai Copilot.

• Internal pilots for generative AI tools are underway, with several hundred users already testing capabilities across engineering, sales, marketing, and finance.

• AI add-on products are licensed independently and tightly integrated with existing toolchains, enabling consistent results across diverse chip designs.

Customer adoption and business impact

• Adoption of AI-enhanced products has been rapid, with DSO.ai moving from pilot to production in weeks or months, reaching 400+ tapeouts in three years.

• AI tools deliver measurable improvements: 5-10x faster verification closure and 20-30% reduction in test pattern counts.

• These products generate incremental revenue as add-ons to existing toolchains, not on a seat basis.

• Both established companies and startups are adopting AI-related IP, driven by faster standards cycles, supply chain diversification, and increased outsourcing.

• Productivity improvements from advanced tools are expected to support margin growth in the IP business.

IP business and AI integration

• IP now represents over 25% of revenue, with Synopsys a leading provider by volume across all verticals.

• Generative AI and design space optimization technologies are amplifying team throughput and efficiency in IP design.

• AI-driven IP products address growing needs for memory and data movers in both data center and edge applications.

• IP titles are unique to each process node and foundry, supporting customer supply chain strategies.

• Outsourcing of interface design is increasing, benefiting the IP business.