CEO Interview: Dr. Babak Taheri of Silvaco

Babak A. Taheri, Ph.D., has served as Chief Executive Officer and member of the Silvaco board of directors from August 2019 to September 2021 and from November 2021 to present. From October 2018 to August 2019, Dr. Taheri served as our Chief Technology Officer and Executive Vice President of Products.

Tell us about your company?

Silvaco Group, Inc. (Nasdaq: SVCO) is a provider of software platforms for design, fabrication, and SIP solutions. We specialize in generating accurate and AI-assisted digital twin modeling for faster and lower-cost product development and manufacturing for our customers. Our customers utilize our solutions in several large and growing markets, including display, power, memory, automotive, high-performance computing, foundries, photonics, the Internet of Things, and 5G/6G. Silvaco is headquartered in Santa Clara, California and has a global presence with offices in North America, Europe, Brazil, China, Japan, Korea, Singapore and Taiwan.

What application areas are your strongest?

Silvaco has been working with customers on their next generation products for decades with a proven track record. Examples of applications include:

• Power Semiconductor such as GaN/SiC for automotives including EV, Chargers, and automotive power systems
• Displays including photonics design and fabrications for display panels from watches, to automotive, to industrial applications
• Memory devices such as DRAM, Flash, and new advanced embedded memories such as MRAM, ReRAM,
• Foundries including AI assisted Fabrication Technology Co-Optimization (FTCO ^TM) through AI and accurate digital twin modeling

What keeps your customers up at night?  

As Semiconductor and photonics industries pursue the next generation of products, our customers face several critical challenges in semiconductor design and fabrication that keep them up at night. These include:

• Complexity and Scale: The increasing complexity and scale of semiconductor designs and manufacturing make it difficult to manage and verify every aspect of the design process efficiently.
• Time-to-Market  Pressure: Rapid advancements in technology and fierce market competition create immense pressure to shorten the time-to-market for new products while maintaining high-quality standards.
• Cost Management: Balancing the costs of research and development, manufacturing, and operational processes is a constant concern, especially when dealing with advanced technologies that require significant investment.
• Technological Innovation: Keeping pace with technological innovation, such as the transition to smaller process nodes, new materials, and advanced packaging technologies, presents ongoing challenges.
• Yield Optimization: Ensuring high yield rates in fabrication is crucial for profitability. Identifying and mitigating potential issues that could affect yield is a top priority.
• Supply Chain Stability: The global supply chain for semiconductors is complex and can be affected by various factors, including geopolitical tensions, natural disasters, and pandemics, which can disrupt production and delivery schedules.
• Regulatory Compliance: Adhering to international regulations and standards in different regions requires continuous monitoring and adaptation to ensure compliance.
• Intellectual Property Protection: Safeguarding intellectual property from infringement and theft is a significant concern in an industry driven by innovation.

What does the competitive landscape look like and how do you differentiate?

The electronics design automation and manufacturing software market is highly completive yet large and expanding. From major competitors to emerging ones, Silvaco has always addressed the new and emerging challenges our customers face in their respective markets. We are addressing customer needs and further expanding the market with advances in AI and digital twin modeling, enabling semiconductor fabs to produce products cheaper, faster and with better quality. This technology addresses the manufacturing aspect, whereas historically, EDA companies have primarily focused on design. Additionally, we focus on fast growing markets, allowing us to expand geographically and address customer needs with agile R&D.

What new features/technology are you working on?

At Silvaco, the majority of our revenue comes from advanced R&D projects that our customers are working on. We typically work on projects that are 2 to 5 years ahead of production.  Our top growing markets are Power, Display, Memory and Foundry. We are working on the next generation of technologies in these markets using AI and digital twin modeling to address complexity, scale, cost, and time to market for our customers.

How do customers normally engage with your company?

At Silvaco, we employ a variety of customer engagement models to ensure that we meet the diverse needs of our clients. Our engagement models include:

1. Direct Sales and Support:
   • We maintain a robust direct sales team that works closely with customers to understand their specific requirements and provide tailored solutions. We view our customers as partners in the R&D process.
   • Our dedicated support teams (Including FAEs, CEAs and R&D) offer ongoing assistance, troubleshooting, and optimization services to ensure that our customers get the most out of our products.
   • We provide agile R&D for customer that need to differentiate and off-the-shelf solutions are not adequate. We sometimes call this “Just in Time R&D”.
2. Enterprise Agreements:
   • We offer enterprise agreements that provide comprehensive access to our entire suite of tools and service or parts thereof.
   • These agreements are customized to meet the unique needs of each customer, often including dedicated support teams and strategic planning sessions.
3. Partnership and Collaboration:
   • We collaborate with customers on joint development projects, particularly in cutting-edge areas like AI-assisted design, fabrication, and advanced process nodes.
   • These partnerships often involve co-development and co-investment in technology that benefits both parties.
4. Training and Education:
   • We provide extensive training programs, workshops, and webinars to help our customers stay up-to-date with the latest tools and techniques.
   • Our education initiatives ensure that customers’ teams are proficient in using our solutions which enable them to maximize their effectiveness.
5. Voice of Customer is our Customer Success Program:
   • Our customer success teams work proactively with clients to ensure they achieve their desired outcomes using our products.
   • Regular check-ins, performance reviews, and feedback sessions help us continuously improve our offerings and support.
6. Technical Collaboration and Customization:
   • We engage in technical collaboration with customers to customize our solutions to their specific needs.
   • This can involve bespoke development, integration with existing workflows, and the creation of unique features or functionalities.
7. Community and Ecosystem Engagement:
   • We foster a strong community around our products, encouraging customers to share knowledge, best practices, and feedback.
   • Participation in industry consortia, forums, and user groups helps us stay aligned with the latest trends and customer needs.

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