January 23, 2006
Intel Unveils Brand New Image
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.
Jack Horgan - Contributing Editor


by Jack Horgan - 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!


Consumer electronics has become the major driver for semiconductor firms. Look at the phenomenal success of the Apple iPod. Demand for consumer electronics is heaviest from young people who have grown up with these various technologies. Product lifetimes are shrinking. Competition across and within these platforms will drive down consumer prices and therefore drive down component costs. For example, cell phones retail for $200 to $ 600 dollars. Carriers offer ~$150 discount to lure new customers and entice existing customers to renew contracts. There are two versions of Xbox, the Xbox 360 Core System lists for $299 while the premium edition lists at $399. The various versions of
iPod range from $100 for the low end shuffle to $400 for the high end video version


The consumer electronics business is becoming more like the old safety razor business where you give away or discount the razor and make money on the blades. Over time households will buy more units and look for systems with boarder range of capabilities. They will be very interested in mobile systems with increased battery life to support anywhere and anytime use. They have already evidenced a willingness to pay for content and premium services.


Users of EDA tools are under substantial pressure to develop boarder products with new features, increased speed for downloading and streaming media, and increased storage capacity for both software and content. They must accomplish this within considerable time-to-market and cost constraints. Tools and methodologies that can address these challenges with minimal risk should be in high demand. One hurdle facing EDA vendors, particularly those offering new point tools, is to convince decision makers in prospect accounts that they can deliver on their product promises. In the CE arena missing a target market window by a little is the same as missing it altogether.


If a company like Intel with a long successful business track record is changing direction in response to shifting market requirements, all companies would be well advised to review their own strategies. Of course it is too early to know what impact these changes will have on Intel. On January 17 Intel announced results for the fourth quarter and the year. Revenue for the quarter was $10.2 billion up 6% from the fourth quarter in 2004. Net income was $2.5 billion up 16% from the same period a year ago. Revenue for the year was $38.8 billion, up 13.5% while net income was up $8.7 billion up 15% year-over-year. However, the results were below analysts' expectations and below Intel's own
midquarter forecast. As a result the stock price dropped 11%.



The top articles over the last two weeks as determined by the number of readers were


European Project to Address Power Leakage in Digital SoCs A consortium of 14 partners, universities and research institutes from seven European countries has launched a project to enhance the design of the next generation of SoCs by addressing the key issues of leakage power in CMOS process of 65nm and below. Named CLEAN (Controlling Leakage power in NanoCMOS SoCs), the project is sponsored by the European Commission with a grant of 4.5 million euro, under the "Nanoelectronics" Strategic Objective of IST 6th Framework Programme.


Mentor Graphics Reports Preliminary 2005 Results; Fourth Quarter Revenue and Bookings Hit Records 234 Mentor announced that fourth quarter 2005 bookings and revenues achieved record levels. Revenues are expected to be in excess of $220 million, exceeding the Thomson First Call consensus estimate of $218 million. The company expects to be profitable for the quarter.


Sequence Low-Power Design Tools to Highlight Japan's EDSF At the upcoming Electronic Design and Solution Fair Sequence will exhibit its complete lineup of tools for low-power design, including PowerTheater, a complete toolkit for SoC power analysis and optimization; CoolPower, providing physical power optimization for leakage power, and dynamic power; and CoolTime, for static and dynamic power grid analysis and optimization.


Ponte Solutions Appoints Jerry Rau as Worldwide Sales VP Rau joins Ponte Solutions, Inc., the design-for-yield company. He has worked in EDA and semiconductor sales and marketing roles for more than two decades, more than half of it with industry leader Synopsys.


Carbon Expands Sales Channel Into Taiwan Carbon Design Systems, a leader in virtual system prototyping, announced that Maojet Technology Corporation, an established EDA tool representative, will distribute Carbon's VSP product family in Taiwan



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    -- Jack Horgan, EDACafe.com Contributing Editor.




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