Cadence Acquires Secure-IC: Strengthening Embedded Security IP Portfolio

Cadence Design Systems, Inc. (CDNS) has announced a definitive agreement to acquire Secure-IC, a leading embedded security IP platform provider. This strategic move aims to enhance Cadence's expanding IP portfolio with Secure-IC's embedded security IP, solutions, evaluation tools, and services. The acquisition is expected to close in the first half of 2025, subject to regulatory approvals and customary conditions, and is anticipated to be immaterial to revenue and earnings this year.

Secure-IC's customer base includes prominent companies like SK Hynix Memory Solutions America, Synaptics, Silicon Labs, and Faraday Technology. The company has completed over 500 successful projects worldwide and operates from its headquarters in Rennes, France, with eight additional offices globally. The integration will combine Secure-IC's solutions (Securyzr™, Laboryzr™, and Expertyzr™) with Cadence's expertise in IP and subsystem design.

The acquisition of Secure-IC represents a strategic move into the rapidly growing embedded security IP market, unlocking a multi-hundred-million TAM opportunity for Cadence. While financial terms weren't disclosed, the transaction's characterization as "immaterial" to 2025 revenue suggests a relatively modest purchase price relative to Cadence's $83.8B market cap.

The strategic value lies in three key areas:

1. Immediate access to top-tier customers like SK Hynix and Synaptics, expanding Cadence's reach and strengthening its position in the market.
2. Cross-selling opportunities between Cadence's existing IP portfolio and Secure-IC's security solutions, enabling Cadence to offer comprehensive security IP alongside its interface, memory, and AI/ML solutions.
3. Enhanced capabilities in the growing chiplet market, where security is paramount, positioning Cadence to capture higher-margin revenue streams from integrated security IP solutions.

This acquisition is technically significant as embedded security becomes non-negotiable in modern chip design. Secure-IC's portfolio, particularly its Securyzr™, Laboryzr™, and Expertyzr™ platforms, provides Cadence with battle-tested security IP that's been validated across 500+ successful projects. The technology stack is especially valuable for chiplet architectures, where securing inter-die communications is critical.

The timing is strategic as the industry shifts toward disaggregated chip designs and AI-enabled SoCs, both requiring robust security frameworks. Secure-IC's multi-certified solutions, compliant with global cybersecurity regulations, provide Cadence immediate credibility in security-sensitive markets like automotive, aerospace, and defense.

The embedded security IP market is experiencing explosive growth driven by IoT proliferation, automotive electronics, and AI acceleration. This acquisition positions Cadence to capture market share in this high-growth segment while defending against competitors. The global presence of Secure-IC, with eight international offices, provides Cadence with enhanced market access and local expertise in key regions.

Looking at industry trends, the deal aligns with increasing customer demand for integrated security solutions in chip design. The ability to offer comprehensive security IP alongside existing interface, memory, and AI/ML solutions strengthens Cadence's competitive position against rivals. The transaction's expected closure in H1 2025 should allow for smooth integration and minimal disruption to existing customer relationships.

Leading embedded security offerings will complement Cadence’s expanding IP portfolio, unlocking a growing multi-hundred-million incremental TAM opportunity.



In conclusion, Cadence's acquisition of Secure-IC is a strategic move that strengthens its embedded security IP portfolio, providing immediate access to top-tier customers, cross-selling opportunities, and enhanced capabilities in the growing chiplet market. The acquisition positions Cadence to capture market share in the high-growth embedded security IP market while defending against competitors. The integration of Secure-IC's solutions will enable Cadence to offer comprehensive security IP alongside its existing interface, memory, and AI/ML solutions, further enhancing its competitive position in the market.