Synopsys Achieves $500M/Year in AI Chip Revenue, Anticipates Continued Swift Expansion no

The demand for generative AI applications is driving significant growth in the AI server and processor markets, with Synopsys generating over $500 million in revenue from AI-related sales in the past year and Foxconn predicting the market to grow from $30 billion in 2023 to $150 billion by 2027.

NVIDIA's high-performance compute GPUs, including the A100 and H100, have reportedly sold out for the foreseeable future.
Synopsys has already generated over half a billion dollars in revenue from AI-related sales in the past year.
The market for AI processors is expected to expand, with Synopsys projecting it to exceed $100 billion by 2030.

Generative artificial intelligence (AI) applications are in such high demand that nVidia’s high-performance compute GPUs, including the A100 and H100, have reportedly sold out for the foreseeable future. This surge in demand has led to a gold rush of sorts, with numerous companies developing AI-oriented processors. Synopsys, a leading supplier of electronic design automation (EDA) tools and chip IP, revealed in their Q3 earnings report that they have already generated over half a billion dollars in revenue from AI-related sales in the past year.

According to Aart J. de Geus, the outgoing CEO of Synopsys, “AI chips are a core value stream for Synopsys, already accounting for well over $0.5 billion on a trailing 12-month basis. We anticipate this growth to continue throughout the decade.”

The increasing demand for diverse generative AI applications is driving significant growth in the AI server market. Foxconn’s head predicts that the market will grow from $30 billion in 2023 to an impressive $150 billion by 2027. The market for AI processors is expected to expand at a similar pace, with Synopsys projecting it to exceed $100 billion by 2030.

De Geus explains, “Use cases for AI are rapidly proliferating, as are the number of companies designing AI chips. Novel architectures are emerging to cater to specific applications in various vertical markets. Third-party estimates suggest that the current $20 billion to $30 billion market for AI chips will surpass $100 billion by 2030.”

AI processors are poised to become a significant segment of the overall semiconductor market. It is anticipated that sales of AI chips may account for 10% of the entire semiconductor market in the coming years. Moreover, they will be a key driver of semiconductor market growth, enabling new applications such as self-driving vehicles.

“In this era of ‘smart everything,’ these chips fuel the growth of surrounding semiconductors for storage, connectivity, sensing, AtoD and DtoA converters, and power management,” says the head of Synopsys. “Predictions of the entire semiconductor market surpassing $1 trillion by 2030 are therefore quite credible.”

Interestingly, a substantial portion of Synopsys’ revenue from AI chips comes from their AI-enabled EDA tools. Essentially, the company sells EDA software that utilizes artificial intelligence to develop AI chips.

Sources: Synopsys, SeekingAlpha.

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Background Information

About Foxconn:

Foxconn, officially known as Hon Hai Precision Industry Co., Ltd., is a global technology manufacturing company. With a rich history dating back to 1974, Foxconn has played a pivotal role in revolutionizing the electronics industry. Foxconn is mainly known for its role as a important contract electronics manufacturer. The company specializes in assembling a wide variety of electronic products, including smartphones, tablets, computers, televisions, gaming consoles, and other consumer electronics on behalf of some of the world's leading technology brands

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

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About Synopsys:

Synopsys is a important American software company that specializes in electronic design automation (EDA) and semiconductor intellectual property. Founded in 1986, Synopsys provides tools and solutions for designing and testing complex integrated circuits and electronic systems. Their software aids in the development of semiconductors, electronic products, and software applications, playing a crucial role in advancing technological innovation across various industries. For more detailed information about their products and contributions, you can visit their official website at

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Technology Explained

EDA: EDA stands for Electronic Design Automation, and it refers to a category of software tools and solutions used in the design and development of electronic systems and integrated circuits. EDA tools assist engineers and designers in creating complex electronic designs, from individual components to entire systems, by automating various aspects of the design process. These tools encompass a wide range of functionalities, including schematic capture, simulation, layout design, verification, and testing.