Alphawave Semi, Synopsys & Silicon IP

... (transcript preview, sign up to read more) ...

I want to get into the technology, but one thing you said in the intro paragraph is this idea that OpenFive is a very high-risk, high reward for the company. I'd love to hear your words. We've heard a lot about the reward opportunities, but I'd love to hear what you think the rewards are and the risks with it as well.

... (transcript preview, sign up to read more) ...

From the reward part, everybody knows the risk-free architecture of OpenFive; half of it is going with that acquisition they’re getting a ready-made market entry or market capture that OpenFive already had. They’re getting the expertise and knowledge, which OpenFive had already built up. From a reward perspective, like you said, it's pretty self-explanatory and visible. On the risk side, I was alluding more toward the integration that comes when a company the size of Alphawave acquires a company the size of OpenFive. Usually, acquisitions tend to be larger companies swallowing up smaller ones in terms of headcount, but in this case, it's different. It does happen in this manner, but previously with semiconductors, I've seen either mergers of equally sized institutions or the larger one acquiring a smaller company that adds to its portfolio or a component to its existing product. For example, Broadcom had the combo chips where they acquired companies, which had WiFi or Bluetooth capabilities, and then added those onto their chips. In this case, I wouldn't say this is new or unique, but it’s a slightly different approach where if you look at the headcount at OpenFive, it’s pretty big and it’s based in India. That’s one part.

... (transcript preview, sign up to read more) ...

As we’ve had conversations about Alphawave, I think in different eyes, their competitive advantages are articulated in different ways. How would you summarize their competitive advantage? How does Alphawave present itself, and how does Alphawave win business?

... (transcript preview, sign up to read more) ...

One competitive advantage is the speed they’re able to churn out IPs or going into the chiplet side, just faster tape out. That is one where having experienced founders is an advantage. Founders who have done this in the past with a previous company and worked at Intel in the past have that knowledge of how the business operates very well. Also, from my experience, they've kept their operations relatively lean versus other organizations. That allows for changes to trickle through much faster. That allows for any fires to be put out faster. That's an area they've been doing well in.

... (transcript preview, sign up to read more) ...