Bill Martin, President/VP of Engineering at E-System Design, has sent another thoughtful response to a blog regarding IP, in particular my post last week about the astonishing increase in the valuation of ARMH over the last 5 years.
Years ago, Chris Rowen had a clear vision where EDA and IP would start to merge, given the complexities of both. He knew both could have a large impact on the resources and risks associated with creating an SoC. His vision was so compelling, Chris resigned from a great group within Synopsys to form his start-up, Tensilica.
At the time, EDA/IP/Customization were all difficult problems to resolve. By building larger blocks that automatically reconfigured and combined other aspects (examples: SW compiler/debugger for code that could add/delete instructions and a verification suite that reconfigured themselves based customers’ usage), the solution Chris created at Tensilica addressed SIP/Embedded SW/VIP and EDA.
Quite an ambitious undertaking, but over time as his solution was honed and matured, the industry saw the end result – a few months ago the large acquisition of Tensilica by Cadence. In fact, the deal was part of a trend. Look at the various EDA and IP acquisitions since 2008, those exceeding $100 million: