Latest news with #chipdesign
Yahoo
3 days ago
- Automotive
- Yahoo
Intel lays off hundreds of engineers in California, including chip design engineers and architects — automotive chip division also gets the axe
When you buy through links on our articles, Future and its syndication partners may earn a commission. Intel has begun cutting jobs in California as part of its cost-cutting and restructuring strategy introduced by CEO Lip-Bu Tan. The move comes two months after Tan warned that staff reductions were unavoidable and that 15% - 20% of the company's staff would be laid off. Officially, Intel is eliminating excessive management layers, but a CRN report indicates that the company is surprisingly laying off chip design engineers and architects. Additionally, the company is shutting down its automotive chip division, according to Oregon Live. Among the job categories being eliminated are 22 physical design engineers, three physical design engineering managers, and several logic and product development engineers. The company is also removing roles such as cloud software architects and engineering managers, in addition to positions tied to business and project management, including a vice president of IT and multiple technology strategy leads. Employees in California are engaged in the development of CPU and GPU products. According to a notification submitted to the state, 107 employees based at Intel's Santa Clara headquarters will be laid off. The filing complies with California's WARN Act, which requires disclosure when 50 or more workers are affected within a 30-day period. The layoffs are scheduled to begin on July 15. Impacted employees have been given either a 60-day notice or a shorter four-week notice, paired with nine weeks of compensation and benefits. Intel is also exiting the automotive chip market. The division, which operated within the Client Computing Group, will be shut down. Intel's automotive business is based in Munich, Germany, leveraging its proximity to major European automakers and suppliers. As of 2024 – 2025, the unit is (or was?) led by Jack Weast, a longtime Intel veteran, Intel fellow, and former VP at Mobileye. To succeed in developing platforms for software-defined vehicles, Intel's automotive unit had autonomy over product strategy and customer engagement. Most employees in that unit are expected to lose their jobs as the company shifts focus to its core offerings in client and data center solutions. The cuts are part of Intel's larger effort to eliminate layers of bureaucracy and improve execution speed. In an internal communication from April, Tan highlighted a shift in performance measurement, criticizing a past practice where leadership success was tied to the size of one's team. He stated that going forward, efficiency and impact with smaller teams will be Intel's way of operation. "I have been surprised to learn that, in recent years, the most important KPI for many managers at Intel has been the size of their teams," Lip-Bu Tan wrote in a letter to employees back in April. "Going forward, this will not be the case. I am a big believer in the philosophy that the best leaders get the most done with the fewest people. We will embrace this mindset across the company, which will include empowering our top talent to make decisions and take greater ownership of key priorities." Tan emphasized that leadership would be responsible for determining how best to align personnel changes with the company's strategic priorities, which include laying off 15% to 20% of its personnel. Earlier this month, it turned out that the company will lay off 15% to 20% of its fab staff as well as outsource a significant portion of marketing operations to Accenture, which is projected to use AI to communicate with Intel customers. Intel is committed to reducing spending by $500 million this year and an additional $1 billion the following year. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Yahoo
4 days ago
- Business
- Yahoo
Cadence Design Systems, Inc. (CDNS): A Bull Case Theory
We came across a bullish thesis on Cadence Design Systems, Inc. (CDNS) on Compound & Fire's Substack. In this article, we will summarize the bulls' thesis on CDNS. Cadence Design Systems, Inc. (CDNS)'s share was trading at $ 307.2 as of 11th June. CDNS's trailing and forward P/E were 76.56 and 44.44 respectively according to Yahoo Finance. A close-up of a LiDAR-on-chip sensor mounted in a consumer-grade electronic device. In the battle for leadership in the electronic design automation (EDA) market, Cadence Design Systems emerges as the clear winner in Compound & Fire's Quick Scan, edging out rival Synopsys not just by metrics, but by the narrative of superior quality and shareholder alignment. Both companies operate in a duopoly, providing critical software and IP for chip design in high-growth areas like AI and automotive. Synopsys performs admirably, with strong financial health, 11.3% revenue CAGR, robust margins, and a solid 19.3% ROIC. However, it narrowly misses the 80% Investment Readiness Score (IRS) threshold, weighed down by elevated stock-based compensation at 11.3% of revenue and tepid insider ownership of 0.6%. In contrast, Cadence scores an impressive 82%, driven by exceptional capital efficiency—its 28.6% ROIC and 155.7% cash conversion ratio (OCF/Net Income) underscore its ability to turn profits into cash at a rarefied level. With a more reasonable 8.4% in stock-based compensation and a decade-long reduction of 12.3% in share count, Cadence also demonstrates disciplined shareholder value creation. While both firms carry net cash, Cadence's consistent outperformance in margin structure, cash flow quality, and capital returns paints a clearer picture of a durable compounder. Despite low insider ownership (0.3%), Cadence's superior execution across key metrics secures its place on the Compound & Fire shortlist—a notable accomplishment in a tightly contested space. Synopsys, though still a high-quality business, falls just short of inclusion. For investors seeking enduring quality with proven financial stewardship, Cadence Design Systems makes a compelling case. Previously, we highlighted a bullish thesis on Synopsys (SNPS), emphasizing its indispensable role in chip design through best-in-class EDA tools and IP, high switching costs, and strong relationships with semiconductor giants like Nvidia and AMD. A contrasting view from Compound & Fire favors Cadence Design Systems (CDNS), not for market position, which it shares in SNPS's duopoly, but for superior capital efficiency, cash flow quality, and disciplined shareholder returns. While Synopsys excels in innovation and industry depth, Cadence's exceptional ROIC and shareholder alignment give it the edge for investors prioritizing financial durability in the EDA space. Cadence Design Systems, Inc. (CDNS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held CDNS at the end of the first quarter which was 59 in the previous quarter. While we acknowledge the risk and potential of CDNS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
6 days ago
- Business
- Bloomberg
Montage Is Said to Hire Banks for $1 Billion Hong Kong Listing
Chinese chip designer Montage Technology Co. has hired banks for its planned Hong Kong listing that could raise about $1 billion, according to people familiar with the matter. The Shanghai-listed company is working with China International Capital Corp., Morgan Stanley and UBS Group AG on the potential share sale, the people said, asking not to be identified because the information isn't public.
Yahoo
21-06-2025
- Business
- Yahoo
Apple Hardware Executive Says iPhone Maker Plans To Use AI For Speeding Up Custom Chip Design: 'High Potential In Getting More Design Work In Less Time'
Apple Inc. (NASDAQ:AAPL) is reportedly looking to harness the power of generative artificial intelligence to accelerate the development of the custom chips that power its devices, according to senior executive Johny Srouji. What Happened: During a speech in Belgium last month, Apple's senior vice president of hardware technologies, Srouji, said the company is exploring generative AI to streamline chip design, calling it a major productivity opportunity, reported Reuters on Wednesday. "Generative AI techniques have a high potential in getting more design work in less time, and it can be a huge productivity boost," Srouji said, according to a recording reviewed by the publication. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share. He made the remarks while accepting an award from Imec, a prominent semiconductor R&D organization. During his speech, Srouji highlighted that electronic design automation (EDA) firms like Cadence Design Systems (NASDAQ:CDNS) and Synopsys Inc. (NASDAQ:SNPS)—both racing to integrate AI—are critical to managing the complexity of Apple's chip development. Srouji also reflected on Apple's bold move in 2020 to replace Intel Corp (NASDAQ:INTC) chips in Mac computers with its own Apple Silicon. He said that it was a major takeaway from Apple's chip development journey was the importance of making bold decisions and moving forward without hesitation. "There was no backup plan, no split-the-lineup plan, so we went all in," he said. "Including a monumental software effort." Why It's Important: Last month, it was reported that Apple is developing new chips to power upcoming smart glasses, AI servers and future Macs. Apple aims to launch it by 2026–2027. Meanwhile, the M5 chip, built on the advanced 3nm N3P architecture, has reportedly entered mass production and is expected to enhance the MacBook Pro, iPad Pro and Vision Pro—especially with upcoming Apple Intelligence features. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo Courtesy: Prathmesh T on UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Apple Hardware Executive Says iPhone Maker Plans To Use AI For Speeding Up Custom Chip Design: 'High Potential In Getting More Design Work In Less Time' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
20-06-2025
- Business
- South China Morning Post
China's top player Empyrean eyes opportunities from US chip curbs on design software
Chinese chip-design software company Empyrean Technology has pledged to become one of the world's top electronic design automation (EDA) providers, as new US export restrictions bring both opportunities and challenges to the domestic industry. Founded in 2009 and based in Beijing, Empyrean aims to ascend to the top tier of EDA providers, capitalising on the struggles faced by its US competitors in selling to China because of new export controls on chip-design software, said Yu Han, a senior market director at Empyrean, at the World Semiconductor Conference in Nanjing, capital of eastern Jiangsu province, on Friday. The remarks came after Cadence Design Systems, Synopsys and Siemens EDA – the three leading EDA suppliers that collectively hold about 80 per cent of the global market share – confirmed they had received notices from the US Commerce Department's Bureau of Industry and Security regarding new export restrictions on software that could be used for developing advanced artificial intelligence chips. Those export controls have raised hopes among Chinese investors and analysts that local companies could seize new market opportunities. Besides Empyrean, other domestic EDA tool vendors, such as Primarius Technologies and Semitronix , have also garnered attention. Play Yu said China currently had over 100 domestic EDA companies, with Empyrean capturing half of that market share. He said Empyrean was the only Chinese company positioned among the second-tier global EDA providers, along with US firms Ansys and Keysight Technologies.
