2024-04-07 11:31:00 ET
A battle is brewing in an under-followed part of the artificial intelligence (AI) industry: chip design software. Several merger and acquisition deals have been announced , and a mega-merger is pending between electronic design automation (EDA) leader Synopsys (NASDAQ: SNPS) and Ansys (NASDAQ: ANSS) . Shortly after that was announced, the second EDA software suite, Cadence Design Systems (NASDAQ: CDNS) , revealed its new supercomputing platform for simulating electronic systems.
Not wanting to get left behind, Japanese chip manufacturer Renesas (OTC: RNECY) announced its intention to acquire smaller EDA software provider Altium (OTC: ALMF.F) . Is something big brewing in the AI market?
Renesas is an integrated device manufacturer, a company that both designs and manufactures semiconductors. It's a hybrid business model that has been making a comeback in recent years. Besides Japan emerging as a top destination for manufacturing in the East , Renesas can thank the electric vehicle (EV) revolution for its resurgence, as well as a myriad of other more mature manufacturing processes (not leading-edge chips for things like data center AI) for chips in industrial and power applications.
For further details see:
1 Chip Manufacturing Stock Making a Big Bet on AI