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Stephen Smith
Stephen Smith

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From Silicon to the Physical World: How Cadence Is Redefining the Future

10 Nov 2026 • 3 minute read

The next great engineering breakthrough won't come from designing better chips alone. It will come from understanding how everything works together.

Over recent months, I've shared several perspectives on the transformation taking place across Electronic Design Automation (EDA), System Design & Analysis (SDA), and the rapidly evolving data centre industry. One thing is becoming increasingly clear: the traditional boundaries between silicon, electronics, mechanical engineering and the physical environment are disappearing. And I believe Cadence Design Systems is uniquely positioned to help lead this transformation.

From the IC to the Entire Environment

Consider the journey of a modern AI processor. It begins with incredibly sophisticated silicon. But performance doesn't stop at the chip. It depends on advanced packaging, PCB design, signal and power integrity, electromagnetic behaviour, thermal management and ultimately the infrastructure supporting it.

An exceptional semiconductor means little if the system cannot reliably power, cool or operate it. This is where Cadence's increasingly comprehensive technology portfolio becomes particularly exciting.

From Virtuoso, Innovus and Integrity 3D-IC at the silicon and advanced packaging levels, through Allegro X, Sigrity X and Clarity for PCB, signal integrity, power integrity and electromagnetic analysis, to Celsius, Fidelity CFD and the Cadence Reality Digital Twin Platform, we can address engineering challenges across an extraordinary range of physical scales.

And now, following our acquisition of Hexagon's Design and Engineering business, including MSC Nastran and Adams, our capabilities extend significantly further into structural mechanics, dynamics and comprehensive Multiphysics simulation. We're moving beyond traditional EDA towards a far more complete engineering ecosystem.

Cadence's "three-layer cake" approach

The Data Center: Where Everything Converges

Nowhere is this transformation more visible than in AI-driven data centres. Increasing compute density brings enormous challenges in power delivery, heat dissipation, cooling efficiency, reliability and sustainability. Cadence Reality's physics-based digital twin technology enables engineers to simulate and optimise data centre environments before making expensive physical changes.

Our collaborations with NVIDIA, NOKIA, HPE and other technology leaders demonstrate how increasingly sophisticated simulation is becoming fundamental to next-generation AI infrastructure. The opportunity is remarkable: connecting engineering decisions made at the silicon and system level with their consequences in the real-world operating environment.

Three Developments I Believe Will Shape Our Industry

  • 1. Shift Left is becoming essential, not optional. Earlier electrical, thermal, electromagnetic and mechanical analysis can reduce costly redesigns, accelerate development and improve reliability. The earlier we understand physical behaviour, the better our engineering decisions become.
  • 2. Multiphysics convergence is transforming system design. The combination of Cadence's established EDA and SDA technologies with Hexagon D&E's world-class mechanical simulation capabilities creates exciting opportunities to eliminate traditional engineering barriers and develop more comprehensive, connected workflows.
  • 3. AI and digital twins are redefining engineering productivity. From AI-assisted design optimisation to large-scale CFD simulation and predictive data centre modelling, engineers can increasingly explore, test and refine complex systems virtually, improving performance while addressing energy consumption and sustainability.

Technology Alone Is Not Enough

Having worked across both Cadence and Hexagon D&E, and now leading our Systems, PCB and Data Centre teams across EMEA, I've witnessed something equally important. The greatest breakthroughs happen when talented people collaborate across disciplines, challenge conventional thinking and focus relentlessly on customer outcomes.

Our opportunity is not simply to offer outstanding individual products. It is to help customers connect their engineering challenges, reduce complexity and innovate with greater confidence. That requires technical excellence, collaboration, trust and a willingness to think beyond traditional boundaries, and that, to me, is what makes this such an exciting time to be part of Cadence.

A Question for the Engineering Community

As silicon, electronics, mechanical systems and physical environments become increasingly interconnected, what do you believe is the biggest barrier to achieving truly integrated engineering — technology, organisational silos or the way we've traditionally approached design?

I'd genuinely welcome your perspectives.


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