Raise your hand if you think innovation comes out of small, nimble, edgy startups. Keep your hand up if you think consolidation is antithetical to the inventive culture closely associated with small, nimble edgy startups where everybody works outside of their job description and above their grade. Now put your hand down and tell us what you think about yet another merger in the semiconductor industry.
Yes, happy for investors that Qualcomm is buying NXP, but the end result will be a nasty one for technical innovators in EDA. Yet another reduction in the number of customers for EDA tools. Not necessarily a reduction in the number of seats, but a reduction in the number of actual separate corporate entities looking for tools for chip design.
Of course, for those who love large, lumbering organizations with almost as many people in the typing pool as in the engineering pool – more consolidation is great news for the semiconductor business and for the electronic design automation business, as well.
However, for those who still remember when EDA was a Wild West full of crazy startups, wacky business ideas, and loads of shifting sands between a constantly morphing/re-morphing population of EDA startups and an also-always morphing/re-morphing population of chip-design customers – take note: Those days are gone. Forever.