Emulation via FPGA or dedicated HDL emulator (a special supercomputer designed for running Verilog/VHDL, very fast, very good, very expensive) is also essential for functional verification of things like CPUs.

For example booting linux and running a simple application can take many billions of cycles. You simply can't simulate that many you need something faster (You can simulate a few billion overnight with an appropriate server farm, but that's across many tests using many simulator instances).