Silvaco Group, Inc. (NASDAQ: SVCO)

Silvaco Group, Inc. is a provider of technology computer-aided design (TCAD) software, electronic design automation (EDA) software, and semiconductor intellectual property (SIP). The company's solutions are used by engineers to optimize semiconductor manufacturing processes and efficiently bring semiconductor products to market. Silvaco's offerings enable customers to increase productivity, accelerate time-to-market, and reduce development and manufacturing costs.

Silvaco generates revenue through the sale of its TCAD, EDA, and SIP solutions. The company's primary products include traditional TCAD tools, advanced AI/ML simulation tools such as Fabrication Technology Co-Optimization (FTCO), EDA software for design, simulation, and verification of semiconductors, and a range of SIP products including interface IP, logic libraries, embedded memory solutions, and automotive IP. Silvaco's customer base includes foundries, integrated device manufacturers (IDMs), and fabless semiconductor companies.

• TCAD Solutions: Silvaco's TCAD solutions are used in the semiconductor industry to model and optimize manufacturing processes and device performance. This includes traditional TCAD tools and advanced AI/ML simulation tools like FTCO. The company is a pioneer in leveraging AI to redefine manufacturing process development in partnership with customers. Applications include simulation of process variation, device performance, thermal effects, optical intensity, plasma chamber, and radiation effect. The FTCO AI/ML solution provides compatible data structures that can be used with Silvaco's EDA modeling, analysis, simulation, verification, and yield enhancement tools. The company also offers design services, expert training, and workshops on its latest manufacturing process development solutions.

• EDA Solutions: Silvaco offers a full, production-proven IC-CAD signoff design platform, comprehensive automated standard cell library creation and characterization solutions, and advanced IP management tool suites. Its IC-CAD design flow supports the complete path from design capture and circuit simulation through layout design, physical verification, parasitic extraction and reduction, and post-layout analysis including statistical variation and yield analysis, enabling silicon-accurate verification and predictable signoff. The automated standard cell library solutions accelerate development through layout generation, optimization, parasitic-aware characterization, and variation-aware modeling to deliver high-quality libraries optimized for power, performance, and area. In addition, Silvaco's IP management tools address the growing complexity of modern SoC development by enabling efficient onboarding of third-party IP, structured reuse of internal IP, version control, traceability, and secure collaboration across distributed teams.

• SIP Solutions: Silvaco's SIP portfolio offers a comprehensive range of solutions for SoC designs, including hard and soft IP, foundational libraries, and embedded memory technologies. The portfolio includes interface IP such as Mixel MIPI C-PHY, D-PHY, and M-PHY, as well as LVDS and other multi-standard SerDes. It also includes logic libraries and physical IP, embedded memory solutions, and automotive IP designed to meet safety, reliability, and security requirements for automotive electronics. These SIP solutions are designed to integrate into customer designs across a range of process technologies and end markets.

Silvaco competes in the semiconductor industry with key competitors including Synopsys, Inc., Siemens EDA, and Cadence, Inc. The company differentiates itself by providing specialized differentiation that is generally unavailable from larger EDA companies. Silvaco also competes with other tools providers, customers with their own EDA capabilities, and other IP companies. The company's competitive advantages include its focus on large, growing markets, addressing unique customer needs, a portfolio approach to licensing and sales, expanding its customer base, and maintaining relationships with key technology providers and academic partners. Silvaco's leadership in AI-powered process development is a notable example of a solution that accelerates time to market for customers while dramatically reducing development costs.

Silvaco's customer base is global and diverse, including engineers and researchers in both semiconductor companies and academia. As of December 31, 2025, the company had over 800 customers worldwide, with over 200 being academic institutions. The revenue was geographically distributed with 54% from customers in Asia, 38% from customers in the Americas, and 8% from customers in Europe. The company's solutions are used to solve semiconductor design challenges spanning the levels of atoms, devices, and systems. Silvaco's end-to-end solutions, combined with its integrated support system and SIP services, aim to attract new customers, retain existing ones, and create upsell opportunities.