Intel and Cadence Expand Partnership to Enable Best-in-Class SoC Design on Intel’s Advanced Processes
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Insights
The strategic partnership between Intel Foundry Services (IFS) and Cadence Design Systems is a significant development in the semiconductor industry, with potential ripple effects across multiple high-growth sectors. The collaboration focuses on the co-development of system-on-chips (SoCs) for AI, high-performance computing (HPC) and mobile markets, leveraging Intel's advanced RibbonFET processes and Cadence's design expertise.
This partnership is poised to enhance Intel's IDM 2.0 strategy, which aims to combine internal manufacturing with foundry services, thereby providing a diversified revenue stream. For stakeholders, the short-term implications include potential stock price movements based on market perceptions of the strengthened partnership. Long-term benefits may include increased market share and revenue growth as the collaboration yields competitive SoC offerings. However, execution risks and competition from established players like TSMC and Samsung could offset these potential benefits.
From a financial perspective, the agreement between IFS and Cadence is likely to involve significant R&D expenditures in the near term, which could affect Intel's financials. However, if successful, it could lead to increased demand for Intel's foundry services and potentially higher margins compared to its traditional CPU business. Investors will be closely monitoring the impact of these developments on Intel's profitability and market share in the SoC domain, where margins are often higher than in the commoditized PC chip market.
It is essential to note that the semiconductor industry is capital-intensive and partnerships like this can help distribute R&D costs while accelerating product development. This strategic move could be seen as a positive signal to investors about Intel's commitment to innovation and competitiveness in the foundry space.
The technical aspects of the agreement, such as the adoption of RibbonFET gate-all-around transistors and PowerVia backside power delivery, represent a leap forward in semiconductor technology. These innovations could offer substantial improvements in transistor performance and energy efficiency, which are critical for the demanding AI and HPC applications. The partnership's focus on developing optimized design flows and techniques for these advanced processes can shorten the time-to-market for cutting-edge SoCs, potentially giving Intel a competitive edge in the fast-evolving tech landscape.
For the industry, the advancement of Intel's 18A technology and the integration of Cadence's IP could set new benchmarks for SoC performance. This could catalyze further innovation across the ecosystem, as competitors strive to match or surpass these technological standards.
Highlights:
- Multiyear agreement to enable best-in-class system-on-chips (SoCs) for the AI, high performance computing (HPC) and mobile markets.
- Joint development on customized intellectual property (IP), design flows and design techniques for Intel’s most advanced RibbonFET processes on Intel 18A and beyond.
- Further strengthening of strong existing partnership to advance Intel’s IDM 2.0 strategy, creating a more robust offering for new and existing Intel Foundry Services (IFS) customers.
“We furthered our partnership with Intel Foundry Services through a significant strategic multiyear agreement to provide design software and leading IP at multiple Intel advanced nodes, thereby advancing Intel’s IDM 2.0 strategy and accelerating mutual customer success,” said Anirudh Devgan, president and chief executive officer at Cadence.
“We’re very excited to expand our partnership with Cadence to grow the IP ecosystem for IFS and provide choice for customers,” said Stuart Pann, Intel senior vice president and general manager of IFS. “We will leverage Cadence’s world-class portfolio of leading IP and advanced design solutions to enable our customers to deliver high-volume, high-performance and power-efficient SoCs on Intel’s leading-edge process technologies.”
Fast-growing market segments, such as AI/ML, HPC and premium mobile computing, require the latest standards in IP to take advantage of advanced packaging and silicon process technologies. Cadence’s leading-edge implementations of trailblazing standards, such as advanced memory protocols, PCI Express, UCI Express and others for these key segments, enable joint customers to achieve scalable, high-performance designs that accelerate their time to market in IFS’ most advanced silicon technologies and 3D-IC packaging capabilities.
Building a world-class foundry business is key to Intel’s IDM 2.0 strategy, and this agreement strengthens IFS’ offerings by making an additional portfolio of essential design tools, flows and interface IP available for foundry customers. It builds on Intel’s engagement with other industry-leading IP providers as it continues to grow the IP ecosystem for IFS customers.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.
About Cadence
Cadence is a pivotal leader in electronic design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary electronic products from chips to boards to systems for the most dynamic market applications, including consumer, hyperscale computing, 5G communications, automotive, mobile, aerospace, industrial and healthcare. For nine years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at cadence.com.
© 2024 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. PCI Express and PCIe are registered trademarks of PCI-SIG. Universal Chiplet Interconnect Express and UCIe are trademarks of the UCIe Consortium. All other trademarks are the property of their respective owners.
Category: Featured
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220958189/en/
Cadence Newsroom
408-944-7039
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Robin Holt
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robin.holt@intel.com
Source: Cadence Design Systems, Inc.
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