Silvaco: Navigating Growth and Transitions in Semiconductor Design

Silvaco Group, Inc., a veteran player in the EDA and the TCAD space, continues to evolve amid the booming semiconductor industry. Founded in 1984 and headquartered in Santa Clara, California, Silvaco specializes in software for semiconductor process and device simulation, analog custom design, and semiconductor intellectual property. As of September 2025, the company has demonstrated resilience through record financials, strategic acquisitions, leadership shakeups, and product innovations, positioning itself as a key enabler for advanced technologies like AI, photonics, and power devices.

Financially, Silvaco closed 2024 on a high note, reporting record gross bookings of $65.8 million and revenue of $59.7 million for the full year. This momentum carried into 2025, with first-quarter bookings reaching $13.7 million and revenue at $14.1 million, alongside securing nine new customers. The second quarter saw bookings of $12.91 million and revenue of $12.05 million, with 10 new logos in sectors like photonics, automotive, military, foundry, and consumer electronics. Looking ahead, Silvaco projects third-quarter 2025 bookings between $14.0 million and $18.2 million, a 42% to 84% jump from the prior year’s third quarter. These figures reflect sustained demand for its digital twin modeling platform, which aids in yield improvement and process optimization. However, challenges emerged in late 2024, including a $2 million revenue midpoint reduction due to order freezes and pushouts, though the company retains a buy rating from analysts.

Leadership transitions marked a pivotal shift in 2025. On August 21, Silvaco announced a CEO change, with Dr. Walden C. Rhines stepping in as the new chief executive. Rhines, a semiconductor industry veteran, brings expertise from his prior roles at Mentor Graphics and Texas Instruments. This followed the departure of Babak Taheri. Complementing this, Silvaco appointed Chris Zegarelli as Chief Financial Officer effective September 15, 2025. Zegarelli, with over 20 years in semiconductor finance, previously held positions at Maxim Integrated and Analog Devices. These moves come after the March 2025 exit of the former CFO, signaling a focus on stabilizing operations amid growth.

Acquisitions have bolstered Silvaco’s portfolio. In March 2025, it expanded its offerings by acquiring Cadence’s process design kit business, enhancing its TCAD capabilities for advanced nodes. More recently, the company completed the purchase of Mixel Group, Inc., a leader in low-power, high-performance mixed-signal connectivity IP, strengthening its SIP lineup for automotive and IoT applications. On the product front, Silvaco extended its Victory TCAD and digital twin modeling platform to planar CMOS, FinFET, and advanced CMOS technologies in April 2025, enabling next-generation semiconductor development. Its tools, including FTCO™ for fab optimization and Power Device Analysis, continue to drive efficiency.

Partnerships and initiatives underscore Silvaco’s commitment to talent and ecosystem growth. In June 2024, it collaborated with Purdue, Stanford, and Arizona State universities to enhance semiconductor workforce development. Additionally, Silvaco’s EDA tools were included in India’s Digital India (DLI) Scheme, inviting startups and MSMEs to access them via the ChipIN Centre. Upcoming events include SEMICON India (September 2-4, 2025) and IP-SoC China (September 11, 2025), where Silvaco will showcase its innovations.

Looking forward, Silvaco’s trajectory appears promising despite industry headwinds like talent shortages and rising design costs. With 46 new customers in 2024 and continued expansion, the company is well-positioned to capitalize on the AI chip market’s growth. As it integrates recent acquisitions and leverages new leadership, Silvaco aims to deliver value in a sector projected to hit $383 billion by 2032. Investors will watch closely as it navigates these dynamics toward sustained profitability.

About Silvaco Group, Inc.
Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Egypt, Brazil, China, Japan, Korea, Taiwan, Singapore and Vietnam. Learn more at silvaco.com.

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