ANSYS Inc ( ANSS ) and Taiwan Semiconductor Manufacturing Co ( TSM ). Ltd. announced a successful pilot with Microsoft Corp ( MSFT ) on Tuesday to boost the simulation and analysis of silicon photonic components.

Together, Ansys ( ANSS ) and Taiwan Semiconductor achieved a tenfold speed-up of Ansys Lumerical FDTD photonics simulation via Microsoft Azure NC A100v4-series virtual machines powered by NVIDIA Corp ( NVDA ) accelerated computing running on Azure AI infrastructure.

John Lee, vice president and general manager of Ansys’s semiconductor, electronics and optics business unit: “Collaborating with TSMC and Microsoft ( MSFT ) has accelerated technologies that address high-speed optical data transfer, which is one of the most important chip design challenges today.”

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Recent reports indicated Taiwan Semiconductor and global chip designers and suppliers are fast-tracking the development of next-generation silicon photonic solutions to address the energy and data transmission speeds needed by AI computing.

K.C. Hsu of Taiwan Semiconductor expects the silicon photonics market to grow at an annual compound rate of 40% between 2023-28 to $500 million, driven by demand for high-data-rate modules for increased fiber-optic network capacity.

Earlier this year, Ansys ( ANSS ) collaborated with Nvidia ( NVDA ) and AI server company Super Micro Computer, Inc ( SMCI ) for turnkey hardware solutions that boost Ansys ( ANSS ) multiphysics simulation capabilities.

Ansys ( ANSS ) creates engineering simulation software to facilitate quicker decision-making, improve product and system designs, and optimize workflows throughout the product life cycle.

Price Actions: TSM stock is up 3.54% at $180.86; ANSS is down 0.32% at $320.25; and MSFT is down 0.86% at $429.80.

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