Prosperity spills over into design tools arena

Article Abstract:

Vendors of electronic design automation (EDA) tools in 1996 will be affected by new EDA methodologies, product acquisitions and the threat of PC-based tools. In North America, the EDA market experienced substantial growth in 1995. However, the Pacific Rim also remains a fast growing EDA market, particularly in China. Japan continues to use many older and internally-developed tools, while slowly moving to third-party tools. Also performing strongly is Europe's telecommunications market. Another trend helping to fuel EDA is the large demand for semiconductor design and fabrication knowledge. Most vendors will spend 1996 developing their strategies and price elasticity models. The continuing rapid evolution of technology will result in increased growth in cycle-based simulation, design reuse and behavioral synthesis. The printed circuit board design software market is expected to grow 20% in 1996, the same rate of growth it had in 1995.

Preview of coming year, Technological forecasting, Corporate growth, Industry growth

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EDA mergers: benefit or burden?

Article Abstract:

Several mergers have taken place in the electronic design automation (EDA) industry, although it is unclear whether this trend is helpful or detrimental to users of EDA products. The industry has a history of failed mergers, although mergers, acquisitions and spinoffs continue to dominate the market. Larger EDA companies are often not as innovative as smaller, tightly focused firms, which makes the smaller start-ups attractive targets for takeover by the bigger suppliers. Many of the larger firms embark on an aggressive strategy of takeovers in order to support customer requirements. Often, a large EDA firm will lack a specific design tool, and will fill that need through acquisition. Also, EDA firms are motivated to acquire other companies by the need to create a front-to-back design capability. A benefit of consolidation is better tool integration, and one-stop shopping for the customer.

Mergers, acquisitions and divestments, Electronics industry

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Serving up the best EDA solution?

Article Abstract:

Electronic design automation (EDA) vendors are assuming new roles in the market to boost their earnings. In recent years, these companies have expanded their design service offerings and are now offering controversial turnkey design services, which EDA users says infringes on their turf. One of the leading EDA companies, Cadence Design Systems, says it is not its intent to replace engineering departments; it says it has left the application-level design untouched with its design service offerings. Some EDA design engineers fear that the rise of design service offerings from EDA vendors will inhibit the use of the best mix-and-match tools on the market. Others believe that it will force EDA vendors to better integrate their product lines with third-party vendors.

Management, Product information, Cover Story

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