tech giants are increasingly designing their own custom chips - how to play it

by:Rocket PCB     2019-09-23
It\'s hard to see all the pieces, but AI is changing computing in a completely new way.
Axio reported February. 6 that Adobe (ADBE -Get Report)
A company known for its software suite for creative professionals is considering building its own semiconductor.
If accurate, the news will bring light to the opportunity to wait for investors.
In the past, Intel (INTC -Get Report)
Dominate the semiconductor world
Device manufacturers build applications around their plug-and-play chips.
They are installed in servers, desktop computers and other devices that require a silicon brain.
Intel is available for all calculations.
Smartphones have turned around. Low-
ARM Holdings\'s chips quickly won the mobile market.
The versatility and license of the architecture allows companies to develop chip-based systems.
This is the first time that it is financially feasible to build chips around the app.
Over the years, custom system (SoC)
Apple\'s microprocessorAAPL -Get Report)
It has always been the envy of the mobile world.
Its series A processor is perfectly optimized for iOS operating systems.
In the benchmark test, the combination revolves around Qualcomm\'s competitive chips (QCOM -Get Report). Samsung (SSNLF)
Huawei and the latest Alphabet (GOOGL -Get Report)
Google followed closely.
This is a part of the evolution of efficiency, three parts.
The Intel era is about rapidly improving raw computing power through density.
Moore\'s Law argues that as more transistors are stuck with integrated circuits, the processing power is doubled every two years.
The next big step in computing will be the product of software optimization.
Abhay Parasnis, Adobe\'s CTO, told Axios that his company is preparing for a world where chipset tailored for machine learning and artificial intelligence will bring more powerful computing.
It makes sense for Adobe to be ahead of vandals.
San Jose has a long history of innovation.
Before the rise of cloud computing, managers revolutionized their business.
Change from expensive shrink mode-
Monthly subscription package software delivered through the Internet.
Managers have embraced artificial intelligence recently.
Sensei reimagined the Adobe software suite with a prism that integrates artificial intelligence and machine learning frameworks.
The company claims it brings magical elements to the creative process.
Parasnis believes that using these terms to think about it, Adobe will be able to go beyond the current visual tools.
Immersive voice, enhancements, and virtual reality environments require new tools.
Cadence Design SystemCDNS -Get Report)
Electronic design automation of software and hardware.
It may seem a bit complicated, but what you need to know is that the company helps other businesses design integrated circuits, printed circuit boards, and soc.
In the past five years, it has been a business that has been growing by an annual revenue of 6%.
Cadence recorded $1.
Sales for the 9 billion fiscal year were 2017, the report for the whole of last year.
Lip, last October
Bu Tan, chief executive of Cadence, led analysts to raise sales expectations.
He pointed out that all areas of the business are growing continuously.
The data center and 5g reported strong growth.
However, teacher Tan is the most enthusiastic about artificial intelligence and machine learning.
Big data and sophisticated algorithms have prompted the demand for what he calls a new \"domain-specific accelerator.
\"Custom silicon is designed for healthcare, transportation and manufacturing applications.
This development echoes what is happening with Adobe.
The company does not produce hardware.
In the modular new world of public cloud and software as a service, Adobe works in a narrow niche.
Still, managers are thinking about building a custom soc.
In addition to the chip design business, Cadence also has a dynamic professional and printing circuit business.
The company announced on July 2018 that it was awarded a contract by the Defense Advanced Research Projects Bureau.
Cadence will help the Pentagon research team automate the design of the next generation of dedicated processors and printed circuit boards.
At a technical meeting on August 2018, management revealed that the company had contracts with all the top semiconductor companies.
The company has 4,100 R & D engineers and 1,500 professionals, including innovation centers throughout Southeast Asia.
Cadence trades at 26.
6x forward earnings.
Its market value is $14. 6 billion.
Stocks can be bought in a pullback.
Appland Alphabet holds Jim Cramer\'s Action Alert and Charitable Trust Portfolio.
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