ACQ2 by Acquired: Detailed Summary of "The Software Behind Silicon"

Release Date: May 6, 2024

Guests:

• Art Digius, Founding CEO of Synopsys
• Sassine Ghazi, CEO of Synopsys

Host:

• Ben Gilbert
• David Rosenthal

1. Introduction to Synopsys and the EDA Landscape

The episode begins with Ben Gilbert introducing the guests, Art Digius and Sassine Ghazi, highlighting Synopsys as an $80 billion leader in Electronic Design Automation (EDA). Ben explains EDA as the essential productivity software for chip designers, likening it to Microsoft Excel or Figma for their profession. He emphasizes Synopsys's critical role in enabling modern semiconductor innovations and the AI era.

Ben Gilbert (00:00):
"ACQ2 is Ben and David's conversations with expert founders and investors... Synopsys even uses AI now to design the software to design chips."

2. The Origins of Synopsys: Art Digius’s Journey

Art Digius recounts the genesis of Synopsys in the mid-1980s. Working at General Electric (GE), he and his colleagues developed innovative design tools, including synthesis. The downturn in the semiconductor industry in 1985 led to layoffs at GE, prompting Art and his team to spin out into a startup with GE's support.

Art Digius (02:18):
"We became quickly known through some paper published as being on the frontier of this thing called synthesis... It was all pretty accidental how that came about."

David Rosenthal (04:49):
"Wow. It's so rare that a corporate spin out into a venture style venture goes well. That's amazing."

3. Synopsys’s Pioneering Role in EDA and Chip Design

The discussion delves into the technical aspects of Synopsys's early tools. Art explains how synthesis tools revolutionized chip design by automating the creation of efficient circuits, significantly outperforming manual designs. This innovation established Synopsys as a leader in EDA.

Art Digius (09:17):
"We understood that the speed was key, and the speed is determined by whatever is the longest path through your design... it made entirely new types of chips possible."

Sassine Ghazi (16:20):
"We are strictly a digital company... before Synopsys, the field was called Computer Aided Design."

4. Evolution of Synopsys and Leadership Transition

Sassine Ghazi shares his journey from academia to Intel and eventually joining Synopsys. He highlights his familiarity with Synopsys products during his time at Intel and the opportunity to lead the company as CEO.

Sassine Ghazi (11:00):
"When I started my career at Intel, a lot of the stuff that the synthesis create, they were manually verified... That's when the opportunity to join Synopsys came along."

5. Trust and Verification in EDA Tools

A significant portion of the conversation revolves around the importance of trust in automated design tools. Art emphasizes that Synopsys's tools not only optimize designs but also have stringent verification processes to ensure correctness, which is crucial given the high costs of manufacturing faulty chips.

Art Digius (17:24):
"The cost of going to manufacturing of something that has a bug is, whoa, you made a big decision there."

Sassine Ghazi (18:27):
"The Value of trust is extremely high. But the necessity for verification is also."

6. Integrating AI into EDA: Opportunities and Challenges

The conversation shifts to the integration of AI within Synopsys's tools. Sassine discusses the initial resistance from users hesitant to trust AI-driven optimizations, a challenge that Synopsys has been overcoming by ensuring robust verification steps.

Sassine Ghazi (17:33):
"In the EDA world, we're all about optimization, massive optimization problems... you have many checks of verification."

Art Digius (18:55):
"Trust but verify. Here's this AI stuff. And then you still need to simulate a lot to make damn sure that you didn't have an error in it."

7. Systemic Complexity and the Future of Moore’s Law

Art and Sassine delve into the increasing systemic complexity in chip design, highlighting how advancements require unprecedented collaboration between design, manufacturing, and software. They discuss the challenges of maintaining Moore's Law amid these complexities and the shift towards multi-die architectures to continue performance scaling.

Sassine Ghazi (35:01):
"They are sitting in a package electronically, you can design it to function correctly and then you can manufacture it and package it to function correctly... connectivity is the enabler."

Art Digius (32:27):
"Moore's Law essentially was the exhibit of what an exponential is... we've contributed about 10 million x in productivity."

8. Expansion Beyond Traditional Semiconductor Customers

The episode highlights Synopsys's strategic shift from primarily serving semiconductor companies to engaging with system companies, such as automotive OEMs. Sassine explains that modern system companies require advanced EDA tools to design complex electronics integrated into their products.

Sassine Ghazi (61:31):
"Fifteen years ago, pretty much 100% of Synopsys revenue was semiconductor companies. Today, 45% of our revenue are system companies."

David Rosenthal (62:29):
"Fifteen years ago, I can't imagine the CEO of Toyota would come see you guys, but today they are."

9. Strategic Acquisition of Ansys: Enhancing Simulation Capabilities

In January, Synopsys announced a significant acquisition of Ansys, a leader in simulation and analysis. Sassine outlines two primary motivations: enhancing Synopsys's core EDA capabilities and expanding into system-level simulation for complex, multi-physics applications.

Sassine Ghazi (63:49):
"The other vector is what we just touched on as well, which is many system companies... ANSYS is the leader in the simulation and analysis of that multiphysics."

Ben Gilbert (63:36):
"I was watching... Jensen arrived, like literally seconds before he was about to run on stage."
(Note: This quote seems out of context regarding Ansys; likely a misplacement in the transcript.)

10. The Integral Role of Simulation in Modern Engineering

Sassine emphasizes the growing importance of simulation in designing complex systems, particularly as physical testing becomes impractical for highly interconnected and smart devices. The acquisition of Ansys positions Synopsys to offer comprehensive simulation solutions, reinforcing their role from silicon design to entire system architectures.

Sassine Ghazi (67:20):
"Physical testing in the context of whatever that end device that you're physically testing is going to become more connected and smarter... simulation plays a huge role."

Art Digius (68:30):
"With accelerated compute... AI for a further acceleration... it's opening up the door."

11. Collaboration and Globalization in the Semiconductor Ecosystem

The discussion touches on the necessity of global collaboration in overcoming the industry's challenges. Art and Sassine highlight how trust, collaboration, and continuous innovation are pivotal for sustaining progress amidst geopolitical tensions and evolving market demands.

Art Digius (57:27):
"The foundation is the same technomics... Synopsys emerged as hopefully trustfully good enough, but also needing and intending on collaboration."

Sassine Ghazi (58:19):
"Now it's very different... there's recognition that in order to drive that ambition of software... you're hiring chip architects without an intention to design a chip."

12. Synopsys’s Societal Responsibility and Future Outlook

In the concluding segments, Art and Sassine reflect on Synopsys's broader role in society, emphasizing the company's responsibility towards community and ethical considerations in technology development. They discuss the balance between technological advancement and societal impact, underscoring the importance of informed and courageous action.

Art Digius (70:59):
"The systemic complexity of a single transistor today is unbelievable... having courage to act..."

Sassine Ghazi (71:47):
"The passion towards innovation... opportunity to be at the center of what you're working on is so relevant to many inflection points."

Notable Quotes with Timestamps

• Art Digius (02:18):
  "It was all pretty accidental how that came about."

• David Rosenthal (04:49):
  "It's so rare that a corporate spin out into a venture style venture goes well."

• Art Digius (09:17):
  "We became quickly known... It made entirely new types of chips possible."

• Art Digius (17:24):
  "The cost of going to manufacturing of something that has a bug is, whoa, you made a big decision there."

• Sassine Ghazi (18:27):
  "The Value of trust is extremely high. But the necessity for verification is also."

• Sassine Ghazi (35:01):
  "Connectivity is the enabler."

• Art Digius (32:27):
  "We've contributed about 10 million x in productivity."

• Sassine Ghazi (63:49):
  "ANSYS is the leader in the simulation and analysis of that multiphysics."

Conclusion

The episode provides an in-depth exploration of Synopsys's pivotal role in the semiconductor industry, tracing its origins, evolution, and strategic expansions. Art Digius and Sassine Ghazi elucidate the complexities of modern chip design, the integration of AI, and the critical importance of simulation. Their insights underscore Synopsys's commitment to innovation, collaboration, and societal responsibility, positioning the company at the forefront of shaping the future of technology.

For listeners interested in the intersection of technology, business strategy, and innovation within the semiconductor industry, this episode offers valuable perspectives directly from Synopsys's leadership.