January 12, 2004
Si2 and OCP-IP
Please note that contributed articles, blog entries, and comments posted on EDACafe.com are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.
Peggy Aycinena - Contributing Editor

by Peggy Aycinena - Contributing Editor
Posted anew every four weeks or so, the EDA WEEKLY delivers to its readers information concerning the latest happenings in the EDA industry, covering vendors, products, finances and new developments. Frequently, feature articles on selected public or private EDA companies are presented. Brought to you by EDACafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!

Bits & Bytes

1 - Semiconductors on the move

George Scalise, President of the Semiconductor Industry Association, as quoted in this last week's SIA Press Release: “November has been another exceptionally strong month for the industry with the year-on-year growth accelerating to 25.7%, indicating that 2003's second half performance is one of the strongest on record for our industry. Year-to-date sales through November are 17.4% ahead of 2002. We expect sales for all of 2003 to exceed the current forecast of 15.8% with broad-based strength in all end-markets, especially computation, communications, global consumer and automotive.”

2 - Verisity acquires Axis Systems

Remember late last year when the news that Verisity Design, Inc. had acquired Axis Systems, Inc. hit the wires? Well, it's January now and here's your chance to listen as Verisity's CEO Moshe Gavrielov and Axis Systems' President and CEO Mike Tsai comment briefly on the news. I spoke with them by phone on Thursday, January 8th.

Moshe: It has been a few weeks since the announcement and obviously we've had the holidays in the meantime. However, we're continuing to get extraordinarily positive response from both of our teams, the employees of both companies, and our customers. The thing driving the response is that the next technology horizon is definitely front-end verification. There is both the room and the need for the kind of technology that Axis and Verisity bring to the market. We're very encouraged by the feedback and we're looking forward to the actual execution of the merger of the two companies. We'll be co-locating the new company headquarters in a space more or less in the middle of where the two
companies are now located, which means we'll probably be somewhere on the border between Sunnyvale and Mountain View, California.

Mike: I think our companies and our customers are excited about the news and our combined vision. We want to be the Number 1 company in verification. Both of our companies have had that as our goal from the very beginning. Now with the merger, our customers are recognizing that the combined force of the two companies means that verification will be served in all areas, including in the platform area. Do our technologies overlap? Actually, it's quite amazing. Even before this merger, Axis had been working closely with Verisity because our technologies are totally complementary to each other. Our customer bases overlap, but not our technologies.

Moshe: Is this a merger or an acquisition? Well actually, in legal terms it will be an acquisition and I'll continue to be CEO of Verisity.

Mike: My role will be as General Manager of the Platform Division of Verisity.

Moshe: Mike will be handling the Hardware Platform Division which, relatively speaking, will consist of Axis Systems. The Verisity part of the combined companies, however, will continue to operate unchanged. The Marketing, Sales VPs, and so on from Verisity will remain unchanged.

What do I think are the prospects for the verification niche in EDA? We all think that verification in the front end is totally underestimated, both in the size of the problem and in the opportunities. In fact, I even object to the word “niche,” because it's clearly the largest growth area in EDA. It's where most customers spend their time today and it's where they'll spend the most money in the future. Years ago - say, if you go back 20 years - synthesis was only a “niche,” but that niche became a $200 million to $300 million industry. Now, verification promises to be 5 times as large as synthesis. Engineers today are spending 60-to-80 percent of their time on
verification. The number of design starts may be going down, but the complexity of those designs is going up.

I definitely think Synopsys and Cadence are fine companies with broad offerings - which is where they're strength is - but their strength is not in the quality of the solutions they provide. We've actually had an opportunity to work with all 3 of the larger vendors lately - Synopsys, Cadence, and Mentor - and we still strongly believe that the combination of Axis and Verisity will put us second to none. You ask when I think Synopsys or Cadence might offer to buy the combined Verisity-Axis Systems entity? Well, I would answer that, maybe someday in the future, you'll pose that question again, but you'll be asking when we are going to offer to buy Synopsys or Cadence. After all, bravado never

In the category of ...

Letters to the Editor - December 22nd - EDA Unplugged 2003

Letter No. 1

“This is really great!”

Letter No. 2

“Aart de Geus' words made me well up!”

Letter No. 3

“The December 22nd issue is a very interesting and enlightening one. It seems that most people are propagating similar values. Children definitely learn more from the actions of people around them. I'm an optimist and do hope we'll live to see a better tomorrow. I also agree with what your mom says - nothing will happen if we don't do anything.”

Letter No. 4

“Although I thoroughly enjoyed the 'Teach your children well' article, and many of the CEOs and respondents seem to teach their children solid and honorable values, it struck me that only two out of 49 (Mike Tsai and Steven Schulz) brought integrity to the forefront! With the scandals we have seen in the past year, one would expect a little more emphasis on that one. What's in a name, you might ask? Just about everything you do! A name is made up of little promises kept to the letter. It is made up of faithfulness, loyalty, and honesty, and of efficiency in your work. In short, a name is the blueprint of the thing called character.”

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-- Peggy Aycinena, EDACafe.com Contributing Editor.


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