In a Tuesday interview with CNBC's Jim Cramer, Synopsys CEO Sassine Ghazi explained why the electric design automation software company is important in creating graphics chips that enable advanced artificial intelligence technology.
Chip giant Nvidia announced on Monday it would work with Synopsys, along with Taiwan Semiconductor, to "accelerate manufacturing and push the limits of physics for the next generation of advanced semiconductor chips," according to a press release.
"We're mission critical to the chip design industry, and in this particular case, Nvidia," Ghazi said. "Every designer inside Nvidia is using our software to architect it, to actually design it and verify it. Then, once they're ready to ship it to manufacturing, we are the bridge to manufacturing. So, we work with the foundry, with the silicon, and our software to enable it."
Ghazi also discussed his company's recent acquisition. Synopsys announced in January it would buy Ansys, an engineering and product design software firm. The deal is valued at $35 billion and is one of the largest tech mergers in recent years.
He explained that together the companies can help predict how graphics chips' functions will play out in the real world. Synopsys has experience in creating digital twins for electronics, while Ansys is a leader in simulating physical processes, like crash tests, he said.
"So, that's where Ansys and Synopsys would provide the virtual world of the future, where the companies, like the Nvidia, etc., [are] able to deliver the physical world of the future," Ghazi said.
Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com