ANSYS Rides on TSMC Collaboration & Granta Design Tie-Up

ANSYS ANSS recently released Automotive Reliability Guide 2.0 in collaboration with Taiwan Semiconductor Manufacturing Company TSM. The guide will support various aspects of automotive applications for TSMC's 7-nanometer FinFET (N7) process technology.

It will aid designers in building robust and efficient chips to accelerate development of new-age smart vehicles.

The latest guide will help optimize efficiency of the chips. It will outline different processes to simulate and identify problems in a chip and consequently perform electromigration, thermal and electrostatic discharge analysis to find a solution.

The customers of both ANSYS and TSMC can leverage the workflows in the expanded guide which includes, ANSYS Totem, ANSYS Pathfinder-Static, ANSYS RedHawk and ANSYS RedHawk-CTA reliability design solutions.

We believe that the guide will be more user-friendlywith ANSYS' simulation solutions. This is expected to increase the adoption rate of ANSYS' offering in turn improving its top-line.

With advanced driver assistance system (“ADAS”) and autonomous driving systems steadily gaining pace, this collaboration is anticipated to be a positive for both the companies as well as relevant technologies.

In fact, per MarketsandMarkets data, the ADAS market is projected to be $91.83 billion by 2025 from $24.24 billion estimate for 2018, reflectinga CAGR of almost 21%.

It is to be noted that ANSYS concluded the buyout of France-based OPTIS recently. OPTIS’ feature-rich virtual reality (VR) platform complements ANSYS offerings to help automotive manufacturers supply safer driverless vehicles.

Notably, shares of ANSYS have gained 46.3% in the past year, significantly outperforming the industry's rally of 41%.

New Alliance with Granta Design

In a separate press release, ANSYS announced that it has entered into a new partnership with Granta Design to enable designers to boost additive manufacturing (“AM”) processes with enhanced accuracy and reliability.

Granta Design provides materials information software to engineering enterprises. This enables the enterprises to take robust product design decisions.

ANSYS' simulation technology for metal and powder bed-based AM will be integrated with Granta Design’s GRANTA MI: Materials Gateway for ANSYS Workbench offering. The combined workloads obtained as a result will assist designers in obtaining accurate simulation results in real-time.

Per MarketsandMarkets estimates, AM Material Market is projected to reach almost $1.1 billion by 2020, at a CAGR of 19.3% from 2014.

Further, both the companies intend to integrate ANSYS Additive Print TM with GRANTA MI to bolster metal AM processes capabilities.

The 3D printing software market presents significant opportunities for ANSYS. In sync with this, the company acquired 3DSIM which is likely to enable it to foray into 3D metal printing.

To Conclude

ANSYS is benefiting from robust adoption, consequently expanding total addressable market (“TAM”). Robust collaborations and partnerships with leading vendors are enabling the company to enhance enterprise penetration.

Moreover, with the acquisitions of 3DSIM and OPTIS, ANSYS is expected to enhance foothold in the competitive simulations market against the likes of Cadence Design Systems CDNS and Synopsys SNPS, among others.

Zacks Rank

ANSYS has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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