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Synopsys, Inc.
Corporate Backgrounder - Fall 2015





Synopsys Overview & History

Binary Chip
Synopsys, Inc. (Nasdaq:SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As the world’s 16th largest software company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP, and is also growing its leadership in software quality and security solutions. Whether you’re a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing applications that require the highest quality and security, Synopsys has the solutions needed to deliver innovative, high-quality, secure products.

Founded by Dr. Aart de Geus and a team of engineers from General Electric's Microelectronics Center in Research Triangle Park, North Carolina, Synopsys was first established as "Optimal Solutions" with a charter to develop and market ground-breaking synthesis technology developed by the team at General Electric. The company pioneered the commercial application of logic synthesis that has since been adopted by every major semiconductor design company in the world. This technology provided an exponential leap in integrated circuit (IC) design productivity by enabling engineers to specify chip functionality at a higher level of abstraction. Without this technology, the complex designs of today would not be possible.

Since 1986, Synopsys has been at the heart of accelerating electronics innovation with engineers around the world having used Synopsys technology to successfully design and create billions of chips and systems that are found in the electronics that people rely on every day.

 Company Founded:1986
 Revenue Q3 FY 2015:$556 million*
 Revenue for FY 2014:$2.057 billion**
 Employees:9,837***
 Headquarters:690 East Middlefield Road
Mountain View, California 94043
U.S.A.
 Locations:113 sales, support and R&D offices worldwide in North America, Europe, Japan, the Pacific Rim, India and Israel
Contact:(650)584-5000
www.synopsys.com
* 6.5% growth over third quarter of Fiscal 2014
** Fiscal Year 2014 (ended October 31, 2014) - 5% growth over Fiscal 2013
*** Total employees worldwide as reported for third quarter Fiscal 2015

Financial Information
Synopsys stock has traded on the Nasdaq Stock Exchange under the symbol "SNPS" since the company's initial public offering in 1992. Recent Fiscal results are as follows:

  • Revenue Q3 Fiscal 2015: $556 million – 6.5% growth over third quarter Fiscal 2014
  • Revenue Fiscal 2014: $2.057 billion – 5% growth over Fiscal 2013
  • Fiscal 2014 Non-GAAP Earnings per Share: $2.53 – 4% growth over Fiscal 2013
Synopsys Revenue 2006-2014
Figure 1: Synopsys Yearly Revenue, 2007-2015. FY15 revenue shows mid-range guidance of $2.2325 billion as of 8/19/2015

Management Team
The company's executive management team is comprised of leaders with diverse global backgrounds and many decades of combined semiconductor industry experience. The tremendous "know how" they bring to Synopsys has helped the company become its industry leader.

Market Overview
We live in an era where the accelerated pace of technology is driving an exponential growth in new devices and applications, and technical innovation is the driving force in the world's economy. Electronics are increasingly impacting everyone, everything, everywhere, every day. As the demand for ever faster, lighter, smarter and cheaper electronics continues to skyrocket, the global semiconductor design community must identify and successfully adopt new technologies and methodologies to solve increasingly complex technical and economic challenges. Today's designers face tremendous pressure to develop differentiated products more quickly and cost effectively than ever before. At Synopsys, helping companies accelerate innovation in all aspects of semiconductor design is in our DNA. Below are three key trends that Synopsys is helping the global design community address.

Accelerating Time to Market
Accelerating Time to Market
The competition to be first to market with the ever more feature-rich products that consumers demand is relentless. According to the 2013 Global Market Awareness & Perception Audit (a blind survey commissioned by Synopsys), the number one concern in the semiconductor design community is meeting time-to-market schedules. Yet, the design of feature-rich electronics is driving system-on-chip (SoC) complexity and cost, so how do today's semiconductor leaders address these challenges? The survey highlighted two key strategies that are being leveraged to accelerate time to market: third-party IP and advanced verification technologies. Increasingly, companies are focusing their efforts on where they can differentiate their products and are looking to high-quality third-party IP as a way to accelerate their product development cycle, reduce cost, and lower integration risk. According to Semico, the IP market is expected to grow to $3.6B by 2017 from about $2.4B today. In addition, Gartner estimates that third-party IP usage will continue to double through 2017. At the same time approximately 70% of the overall design cycle time and cost involve verification. It's no wonder that companies are focusing on adopting leading verification technologies as a strategy to help them identify bugs as early as possible in the design cycle to both improve quality and accelerate time to market.

Advanced Design at Every Process Node

Advanced Design at Every Process Node
Innovation drives the semiconductor industry to constantly push the boundaries of what is possible, whether it's scaling to smaller feature sizes or adopting new chip architectures such as FinFET transistors. As a result, companies that can justify the additional cost are moving to newer nodes. At the same time, according to International Business Strategies (IBS), more than 80% of design starts are at 65 nanometers and above process nodes, and according to VLSI Research, approximately half of the wafers are manufactured at 65 nanometers and above. So does that mean only a very small segment of the industry is doing advanced design? No, it underscores the fact that advanced design is also being done on the established process nodes and that the technologies and methodologies developed to design at the emerging nodes also deliver tremendous benefits for designs being done at the established nodes. Examples include low power techniques that enable lower cost, ultra-low power solutions and routing technologies that use fewer layers, which results in fewer violations and brings higher-quality chips to market more quickly.

The Internet of Things
The Internet of Things
Everyone is talking about the Internet of Things (IoT) because it represents the next evolution of the Internet, taking a huge leap in its ability to gather, analyze, and distribute data that can be turned into information and action. Consider how new devices, such as Google's Nest thermostat and smoke detector, are enabling us to increasingly monitor and control our environment remotely. Sensors are at the heart of this evolution and it's estimated that approximately 30 billion sensors will be in use by 2017*. These connected devices, enabled by an explosion of embedded 'smart' chips, are poised to drive significant growth in a broad range of end markets including automotive, mobile, digital home, industrial, medical and consumer.

*Source: Semico Research, 2013

Integrated Solutions to Accelerate Semiconductor and System Innovation

hands_chip
Synopsys' full suite of best-in-class solutions enables designers to accelerate the creation and verification of complex IC and SoC designs from concept to silicon. Synopsys provides a complete front-to-back design and test environment, software-level to silicon-level verification, IP, FPGA solutions and professional services to help its customers get their silicon working quickly and accurately. Synopsys leads the way in offering technology that creates a bridge between design and manufacturing to improve yield and increase predictability.

Synopsys also develops and supports products for the design and analysis of high-performance, cost-effective optical systems. Synopsys' products help customers accelerate their innovation by improving their designs in virtually every metric, including performance, complexity, silicon area, cost, power consumption and time-to-market. With the acquisitions of Coverity and Codenomicon, Synopsys also provides solutions that improve software quality and security.

A complete list of Synopsys solutions includes:

Prototyping & Power Electronic
Systems Tools
  • Architecture Design
  • Virtual Prototyping
  • FPGA-Based Prototyping
  • Power Electronic Systems
Verification
  • Functional Verification
  • RTL and gate-level Simulation
  • Verification Planning
  • Coverage Analysis, Reporting, Automation
  • Native Low Power Simulation
  • X-Propagation Simulation
  • Verification IP, including Memory Models
  • Analog/Mixed-Signal Verification
  • Debug & Analysis
  • HW/SW Debug
  • Formal Property Checking
  • Low Power Static Checking
  • CDC (Clock Domain Crossing)
    Static Checking
  • Sequential Equivalence Checking
  • SoC Connectivity Checking
  • Transaction-Based Acceleration
  • Emulation
  • Regression Management
  • Functional Qualification
IP
  • Wired and Wireless Interface IP
  • Analog IP
  • Processor IP & ASIP Tools
  • Logic Libraries, Embedded Memories & Embedded Test
  • IP Subsystems
  • SoC Infrastructure IP
Design
  • High-Level Synthesis
  • RTL Exploration
  • RTL Synthesis
  • FPGA Design
  • Power Optimization
  • Design for Test & ATPG
  • Formal Equivalence Checking
  • Floorplanning
  • Place & Route
  • Custom Implementation
  • In-Design Physical Verification
  • In-Design Rail Analysis
  • Static Timing Analysis
  • Parasitics Extraction
  • DRC / LVS Physical Verification Signoff
  • SPICE Modeling & Simulation
  • Analog Mixed Signal Verification
  • 3D Extraction
  • 3D-IC Support
Manufacturing
  • Technology CAD
  • Mask Synthesis & Data Prep
  • Manufacturing Yield Management
  • Lithography Verification
  • Imaging Optics Design & Analysis
  • Illumination Optics Design & Analysis
  • Optical Engineering Consulting Services
  • Physical System Simulation
Software Quality & Security
  • Architecture Analysis
  • Static Code Analysis
  • Software Composition Analysis
  • Protocol & File Fuzz Testing
  • Software Test Optimization for Developers & for QA
  • Interactive Application Security Testing
  • Threat Intelligence Platform

Professional Services
Synopsys' services organization provides consulting and design services to help chip developers accelerate innovation and achieve success in their design programs. These services are tightly aligned with our EDA, IP, FPGA and optical products to advance customers' learning curves and help them develop and deploy advanced methodologies that improve their productivity and design results. Our worldwide team of design consultants complements our customers' core competencies to mitigate their project risks and accelerate the implementation of their chips.

Standards and Interoperability
For the benefit of our customers, Synopsys is committed to making tool interoperability a reality. The company demonstrates its leadership and focus on accelerating innovation by actively participating in industry organizations, partnering with customers, semiconductor IP and EDA companies, and making its own technology available through open-source licensing or donation to standards groups. Synopsys works with standards bodies and industry organizations to lay the groundwork for tool and semiconductor IP interoperability throughout the EDA industry.

Through its in-Sync program, Synopsys establishes relationships with other EDA and semiconductor IP vendors to create a smooth, predictable path between Synopsys tools and its in-Sync partners' products. Synopsys has made significant contributions to and has driven the industry adoption of a number of industry-critical standards via direct contributions to the industry or through standards bodies and industry organizations.

Synopsys was recognized by the IEEE Standards Association with the 2010 Corporate Award for long-term vision, outstanding leadership and volunteer contributions to the IEEE-SA specifically for the development and deployment of EDA standards.

Strategic Alliances and Partnerships
Synopsys has long-established proven strategic alliances with the leading foundry, FPGA and IP suppliers that are dedicated to jointly solving the challenges of system complexity and nanometer scale for leading-edge SoC design. Key alliance partners include:

  • Foundry Partners
    • Taiwan Semiconductor Manufacturing Company Ltd. (TSMC)
    • GLOBALFOUNDRIES, Samsung, IBM and UMC (ITDA Alliance members)
    • Intel Custom Foundry (ICF)
  • FPGA Partners
    • Achronix, Altera, Gowin Semiconductor Corp, Lattice (including Silicon Blue), Microsemi (formerly Actel), and Xilinx
  • IP Partner
    • ARM Ltd.
    • Imagination Technologies

Synopsys also maintains a broader semiconductor and IP vendor program aimed at enabling our vendor partners to produce the best quality libraries and design flows our mutual customers.

Synopsys Users Group (SNUG)

SNUG logo
Established in 1991, SNUG represents a global design community focused on accelerating innovation. As SNUG marks its 25th anniversary, it is the electronics industry's largest user conference, and it continues its tradition of delivering a robust technical program developed by users, for users. SNUG brings together more than 10,700 users across North America, Europe, Asia and Japan, features approximately 680 customer papers, and includes strong ecosystem partner participation through Designer Community Expos in many regions. For information on the SNUG 2015 program, or to view SNUG Silicon Valley keynote presentations, please visit the SNUG Conference page.

Synopsys University Program
Another way Synopsys demonstrates its commitment to accelerating innovation is through its Worldwide University Programs. Synopsys provides research and academic institutions with access to the tools and technology needed to develop well-educated students who can meet the difficult challenges of IC, SoC design and Optical design. Prior to entering the workforce, engineering students receive hands-on experience — in the classroom and in graduate-level research programs — with Synopsys' industry-leading EDA, IP and Optical solutions. Synopsys software is currently installed in more than 1,775 educational institutions worldwide and reaches thousands of students and professors across the globe every year.

Synopsys Community Affairs

Synopsys Community Program
Synopsys Community Affairs embodies the company's values by implementing worldwide philanthropic strategies that strengthen local communities, encourage employee engagement and inspire a new generation of leaders.

Synopsys is committed to making a positive impact in the communities where employees live and work. Each year, the company and its foundations donate more than $2 million in charitable contributions to nonprofit organizations with a strong focus on math and science education. Signature programs promote interest in Science, Technology, Engineering, Math (STEM) at the K-12 level through teacher training in project-based learning and science fairs and competitions such as "sciencepalooza!" Since its inception in 1999, more than 1 million students and teachers have participated in the Synopsys Silicon Valley Science & Technology Outreach Foundation programs.

The Synopsys Shares program is another important part of the company's philanthropy and leverages the creative energy of employees to make a positive difference and respond to local needs. Through the program, employees are empowered to organize community service projects and giving campaigns, participate in Synopsys-sponsored volunteer activities, and take advantage of the employee matching gift program to double the impact of their charitable gifts. Each year, employees are involved in more than 150 community affairs activities at offices around the world.