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Siemens snags Mentor: Cartel canceled, Gary Smith vindicated

Thursday, March 30th, 2017

 


Today is the day some EDA purists thought would never happen
: The disassembling of an industry status quo that’s been in place for over 20 years

As of today, Mentor Graphics has been sold and is fully owned by Siemens. Now Mentor’s arc of history will be decided by folks not residing in the green forests and hills of northern Oregon, and the Big Three cartel is no more. A cartel which has slowly consolidated the playing field over time until nary a startup can be seen.

The power vested in the Big Three EDA companies has grown steadily and inexorably over these years, as has their market dominance. Examination of recent numbers provided by the ESD Alliance Market Statistics Service indicates that today, in excess of 85-percent of the revenue earned in the EDA industry can be attributed to the combination of Synopsys, Cadence, and Mentor Graphics.

These three companies, their leadership, sales prowess, and increasing control of the conversation and technical direction in the industry has made for a powerful cartel. But again, that cartel is no more and the crystal ball predicting future dynamics within the EDA industry has gone dark.

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