Increasing Use of Semiconductor Devices in End-User Segments Driving the Asian EDA Tools Market

SINGAPORE—(BUSINESS WIRE)—April 30, 2008— The increased use of semiconductor devices in end-user segments drives the revenue growth of the Asian electronic design automation (EDA) tools market. End markets such as consumer electronics, communications, computing are booming in Asia, creating the need for more market-tailored products. The automotive industry is another growth opportunity for analog EDA tool vendors because of the increased use of electronics in vehicles.

New analysis from Frost & Sullivan ( http://www.semiconductors.frost.com), Asian EDA Tools Market, finds that the market earned revenues of $0.66 billion in 2007 and estimates this to reach $1.45 billion in 2013. China and India will be growing the fastest.

Spurred on by its vast human resource talent pool, Asia is emerging as the next hot spot for EDA, notes Frost & Sullivan Research Analyst A. V. Sridevi. Many multinational companies are moving significant part of their design activity to Asia. The countries spearheading this movement are China, India, Malaysia, Singapore, South Korea, and Taiwan. Nearly half of the design firms in Asia, mainly in China are funded by local ventures.

The growing interest in 90 nm and 45 nm technology is driving semiconductor manufacturers to invest in new EDA tools. Designers are increasingly moving to advanced 90 nm, since the smaller die size can reduce cost, boost capacity, and allow more integration of functionality on a single chip. This apart, the growth of application specific integrated circuits (ASIC) and field programmable gate array (FPGA) markets will also significantly boost the demand for EDA tools. The demand for ASIC design is on the rise due to the reduction in the chip size and the growing demand for improved performance.

However, the high degree of technical change within the semiconductor industry, particularly shrinking design geometrics, is a major challenge for the EDA industry. While traditional concerns existed regarding chip design centered on speed and the chip area, there are now concerns relating to power, signal integrity, yield, and metal migration.

Although the complexity of EDA tools has increased, the revenue generated remains limited, says Sridevi. Significant EDA revenue growth is important for customers as well as vendors because it funds the R&D activities that make the development of new tools and upgrades possible.

Given these challenges, EDA tool vendors have to introduce new tools as well as upgrades to existing tools such as new or enhanced design-for-test and design-for-manufacturability functionality to realize significant revenue growth. The key success factors for any EDA vendor are customer-specific solution, productivity, and ability to match with the complexity of the ever-evolving features of electronic products.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an outline of the Asian EDA tools market, then send an e-mail to Donna Jeremiah, Corporate Communications, at Email Contact, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Asian EDA Tools Market is part of the Semiconductors Growth Partnership Service program, which also includes research in the following markets: Southeast Asia and ANZ Semiconductors Market, Worldwide Microcontrollers Market, World Digital Power Management ICs Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivans Growth Partnerships, visit http://www.frost.com.

Asian EDA Tools Market

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Contact:

Frost & Sullivan
Corporate Communications North America
David Escalante, 210-477-8427
fax: 210-348-1003
Email Contact
or
Corporate Communications Southeast Asia
Donna Jeremiah, +603 6304 5832
fax: +603 6201 7402
Email Contact
or
Corporate Communications Europe
Joanna Lewandowska, +48 22 390 41 46
Email Contact
or
Corporate Communications South Asia
Ravinder Kaur, +91 44 42044760
fax: +91 44 24314264
Email Contact
or
Corporate Communications Middle East
Nimisha Iyer, +91 22 4001 3404

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