Is this a unique proposition or are there many players in this market?

It is not entirely unique: similar solutions are available. However, we are one of the leaders in the RISC-V ecosystem in terms of the scope of our product portfolio and its technical characteristics. Syntacore’s key competitive advantage lies in our capacity to significantly optimize the architecture and microarchitecture of the processor for each task and each customer individually. The company has developed a technology, which adapts the properties of the processor so that it has differentiating characteristics.

The company is one of the founding members of the RISC-V Foundation — an open international consortium, which develops and promotes open microprocessor architecture. This is a unique ecosystem offering once-in-a-decade opportunities.

Currently, there are two main established ecosystems of computing platforms: x86 (Intel and AMD) and ARM. Key players within these ecosystems have been around for such a long time that it is extremely difficult for a new company to enter the market. It’s hard to imagine that a new producer of microprocessors based on these architectures would be able to compete with existing manufacturers. Nevertheless, the inconveniences and restrictions, which are associated with such monopoly, are becoming more and more evident.

On the other hand, RISC-V is a high-quality open standard for the architecture and command system of the processor. The standard is managed by the RISC-V Consortium (RISC-V Foundation), which is a non-profit organization that develops and promotes the technology in the industry. You could say that RISC-V is the first open alternative to the closed x86 and ARM ecosystems. For a number of reasons, a universal vendor-neutral ecosystem has grown around RISC-V. It is supported by many leading players and is rapidly expanding.

At the beginning of 2020, the consortium had more than 500 members from 33 countries. There is already a significant number of solutions based on RISC-V, despite the fact that the development cycles of semiconductor devices are quite long (over two years). Some of the existing solutions are based on our technologies. We are very proud that Russian companies — our clients — are among the pioneers of the ecosystem, which is still in the early stages of its development. The situation is ripe with unique opportunities for all, including local companies.

What is the current situation in the market for microprocessors?

The semiconductor industry is currently at a turning point. Moore’s law no longer applies, at least in terms of economics: it’s now impossible to cut the cost of microcircuits with a decrease in design specifications, processors do not become twice as productive every few years. At the same time, applications are quickly becoming increasingly complex, which is mostly due to artificial intelligence and high-speed wireless communication technologies.

As a result, there is a demand for specific solutions, such as processors that can efficiently perform highly specialized calculations. Since its inception, the RISC-V architecture has been designed with such specialization in mind (a team of researchers from the University of California, Berkeley started working on the specification in 2010). The RISC-V ecosystem is, in fact, an ideal environment to search for and to promote such solutions.

Are you saying that RISC-V is the answer to monopoly?

Yes, and it’s also a reaction to the technological challenges of our times. RISC-V-based technologies are catching on very quickly, and the markets for microprocessors are changing.

It’s interesting that many countries are recognizing and reacting to this extraordinary opportunity. Thus, in August 2019, the RISC-V architecture was selected for the implementation of the European Processor Initiative. One of its goals is to create microprocessors and accelerators to build a European exascale supercomputer, a new generation of autonomous transport systems, and a line of processors for cloud data centers with fundamentally improved characteristics. The Israel Innovation Authority is using RISC-V to create a GenPro platform; whereas China launched a government subsidy program for RISC-V-based solutions and created three major industry organizations that include more than 300 companies.

RISC-V can potentially open up other markets, which are currently protected by patents for processor command systems. These markets include data centers, personal computers and mobile. RISC-V-based solutions have the capacity to outperform x86 and ARM in terms of computational speed and energy efficiency. Even now, in the initial stages of development, products based on RISC-V are in demand for the Internet of things and embedded systems. Thanks to this new ecosystem, producers are now able to quickly enter the markets, which might have been inaccessible to them before, and become leading players.

So we can expect Windows for RISC-V?

It’s unlikely in the short term. Although Microsoft has recently become quite dynamic and full of surprises, so I wouldn’t rule that out.

Let’s go back to the deals.

Terra VC fund was one of the early investors in Syntacore. We used these investments to develop our technologies and new products, while also gaining invaluable experience from working with the fund’s team of specialists. Terra VC exited Syntacore in November 2019 during a deal with YADRO.

With our new shareholders, Syntacore is planning to expand in a number of key areas. First, we have to establish physical presence in the major markets — Asia, Europe, and the United States — by opening offices there. We’ll announce that in the next few months. Second, we will be expanding the product line. Syntacore mostly produces general-purpose processors, but it’s much more interesting to make specialized ones — this IP is currently in development.

Terra VC fund was born in 2019 and reached $40 million by pooling together two venture funds (Phystech Ventures and North Energy Ventures). Out of 24 investors in the new fund, 17 have previously worked with Phystech Ventures and North Energy Ventures. The investors of Terra VC include major banks, corporations, RVC, proprietors of oilfield services companies, and international technology entrepreneurs. The fund’s portfolio boasts a number of Russian technology companies, which operate in the Middle East, Southeast Asia and North America.