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IBM and Qualcomm shift toward STCO to integrate semiconductor design and manufacturing
Tuesday, December 23, 2025 at 08:32 PM
IBM and Qualcomm are adopting System-Technology Co-Optimization (STCO) to bridge the gap between semiconductor design and manufacturing processes, aiming to optimize performance at the system level rather than just the transistor level.
Context
IBM and Qualcomm are aggressively adopting System-Technology Co-Optimization (STCO) to drive semiconductor performance gains as traditional transistor miniaturization hits physical limits. This methodology shifts focus from simple shrinking to a holistic optimization of chip architecture, 3D stacking, and software integration. In February 2025, the companies expanded their partnership to optimize IBM Granite 3.1 generative AI models and watsonx.governance for Qualcomm’s Snapdragon 8 Elite and Dragonwing platforms. This move prioritizes energy efficiency and on-device processing over raw density, addressing the "scaling walls" of power and thermal management.
This pivot is critical for the AI supply chain, where power efficiency and data security are now primary bottlenecks. By co-designing hardware and software layers, the companies target significant system-level improvements in performance per watt, potentially reaching gains of 30-40% between generations without relying solely on next-node manufacturing. These STCO-driven solutions are expected to roll out in enterprise and edge devices throughout 2025, signaling a broader industry transition from pure geometric scaling to advanced heterogeneous integration and 3D chiplet architectures.
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