HYDERABAD, India and SEBERANG PERAI, Malaysia, June 12, 2026 /PRNewswire/ -- The semiconductor industry is under growing pressure to deliver more capable technologies while reducing development time, cost, and risk.

In response to this growing industry need, CADFEM APAC, a leading provider of engineering simulation and digital engineering solutions, has signed a Memorandum of Understanding (MoU) with SilTerra Malaysia Sdn. Bhd., one of Malaysia’s leading semiconductor foundries and fabless design service providers. The collaboration establishes a strategic framework aimed at accelerating semiconductor innovation through simulation-led development, stronger design-process alignment, and advanced digital engineering methodologies.

The partnership brings together CADFEM APAC’s expertise in multiphysics simulation, digital engineering, and predictive development frameworks with SilTerra’s deep knowledge of semiconductor manufacturing, process development, and fabrication technologies. Together, the organizations aim to create a more efficient pathway from concept to silicon while reducing development risk and improving engineering confidence.

A key focus of this cooperation is the development of advanced Design-Technology Co-Optimization (DTCO) and System-Technology Co-Optimization (STCO) frameworks. By integrating device, process, and design domains into a unified digital environment, both organizations will enable earlier technology exploration, faster design validation, and improved correlation between simulation models and manufactured devices.

As part of the initiative, CADFEM APAC will contribute its expertise in multiphysics and systems simulation to develop predictive engineering environments capable of modelling device physics, material behaviour, thermal-electrical interactions, variability, and system-level performance. SilTerra will provide process insights, fabrication expertise, and characterization data to ensure strong alignment between virtual development models and manufacturing realities.

As AI-driven computing continues to push the limits of bandwidth and energy efficiency, SilTerra is advancing next-generation optical interconnect technologies on unified silicon architectures to address growing data transfer and power dissipation challenges. 

CADFEM APAC and Silterra will explore the application of Agentic AI to enhance semiconductor development workflows. Leveraging technologies such as NLP, Retrieval-Augmented Generation (RAG), AI-assisted EDA environments, and PDK integrations, the initiative aims to streamline documentation, improve cross-functional collaboration, and accelerate the transition from optical circuit concepts to manufacturable SoCs and Photonic Integrated Circuits (PICs).

The engagement will also establish a continuous feedback framework between simulation and fabrication, enabling faster validation, improved model correlation, and greater alignment between design intent and manufacturing outcomes.

In addition, both organizations will explore reliability-focused engineering methodologies relevant to automotive, industrial electronics, and other high-dependability applications, where understanding thermal, electrical, and Environmental effects on semiconductor performance is increasingly important.

Commenting on this joint effort, Beng Joo Thung, Senior Vice President, at SilTerra Malaysia Sdn. Bhd., said, “The future of semiconductor advancement will be defined by how effectively organizations can connect design, process development, and manufacturing within a unified engineering framework. Our collaboration with CADFEM APAC represents an important step in that direction. By combining simulation-driven development with real manufacturing insight, we aim to accelerate innovation, improve development efficiency, and strengthen the industry’s ability to bring next-generation technologies to market with greater confidence.”

Beyond technology development, this strategic engagement will extend into activities that will help showcase practical engineering advancements while contributing to the continued growth of the regional semiconductor ecosystem.

Speaking on the alliance, Dr.-Ing. Madhukar Chatiri, CEO of CADFEM APAC, said, “The semiconductor industry is increasingly being defined by how quickly organizations can translate ideas into manufacturable technologies. By bringing together predictive engineering, simulation expertise, and manufacturing knowledge, this collaboration creates a stronger foundation for faster development, better design decisions, and reduced technology risk.”

Through this MoU, CADFEM APAC and SilTerra reaffirm their commitment to advancing semiconductor innovation through simulation-driven engineering, stronger design-manufacturing alignment, and accelerated technology development that supports the evolving needs of the global semiconductor industry.

“This is a company press release that is not part of editorial content. No journalist of The Hindu businessline was involved in the publication of this release.”

Published on June 12, 2026