February 25, 2008
First 4 weeks of Shock & Awe … then DVCon
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!

-        Nobody wants to answer Cadence’s questions for them, but …

-        Cadence does do All-You-Can-Eat deals.

-        Companies lose productivity when they don’t use best-in-class tools.

-        Companies cannot figure this out for themselves and blanche when others tell them.

-        Nobody’s talking about DFM because VCs have stopped funding it.

-        VCs have stopped funding DFM because it’s in the consolidation phase.

-        Nobody is selling EDA software at a discount in India.

-        It’s one universal price for all, no matter where you are on the globe.

-        Huge numbers of engineers are coming out of colleges in India.

-        Shrinking numbers of engineers are coming out of colleges in the U.S.

-        EDA companies don’t hire U.S. grads because they can’t find them.

-        It’s not a good idea to become a realtor in California.

-        It is a good idea to become an engineer.

-        Pick a career when you’re young that you’ll still like when you’re old.

These were the highlights of the 2008 DVCon Troublemaker’s Panel. There was only one lowlight. That was when Brett Cline whipped out a life-size cardboard head of the still long-suffering Mike Fister and waved it around, proving two things simultaneously: 1) Cline is an abysmal ventriloquist and should not give up his day job, and 2) tacky, sophomoric humor will still get you a seat on the Troublemaker’s Panel.

* The Final Word at DVCon goes to Gary Smith: “Cadence crashed and burned for two reasons. RTL is a commodity item and going to stay flat. It’s over, guys! The other issue is a Cadence issue. If you’re doing business with companies that did reverse buyouts, you’re in trouble because those people are getting cut to pieces. NXP went private, and so did Freescale. I don’t even balance my own checkbook, but I know the financial guys created a bubble and Cadence is paying the price.”

You can find the full EDACafe event calendar here.

To read more news, click here.

-- Peggy Aycinena, EDACafe.com Contributing Editor.

Review Article
  • DVCon Troublemaker's Panel February 26, 2008
    Reviewed by 'Cedric Iwashina'
    Hi Peggy,
    At the DVCon Troublemaker's Panel, I thought that some of Gary Smith's observations/predictions were the most interesting.
    A few weeks ago at the EDAC CEO panel, you asked Mike Fister about the rumor last summer that Kohlberg Kravis Roberts and the Blackstone Group might possibly take Cadence private.
    On this year's Troublemaker's panel, Gary said that a large part of Cadence's recent financial shortfall was due to private equity (PE). Specifically, some of Cadence's largest customers were taken private over the last two years, e.g., NXP and Freescale. Now, the PE firms realize that they made a mistake and are losing money hand over fist. So, they've cut costs to the bone. As a result, they're not spending as much on EDA software as expected. Gary also said that, due to these financial debacles, PE firms were no longer interested in anything even remotely related to semiconductors, including EDA.
    Gary also said in physical implementation, Cadence needed to buy Magma, but probably couldn't afford it any longer after their precipitous drop in market cap. He said that Mentor/Sierra would be able to sustain a viable physical implementation business. And that AtopTech would most likely be acquired, probably by Synopsys.
    One last thing he said, that I found to be a bit strange, is that ESL continues to grow, but hasn't reached the "knee of the curve" in terms of market acceptance, yet. I think he said that it would reach that "knee" around 2012. That can't be good news for ESL companies.

      8 of 9 found this review helpful.
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  • What the *&!^? February 25, 2008
    Reviewed by 'Bob Smith'
    Peggy -
    This is a great article and dissection of the state of the EDA industry. No doubt the industry is going through very tough times and your article provides several different perspectives about why this is happening. Your obesrvation about the role the IDMs play in the food chain is very good, for example. While EDA may be on the "outs" now, it is clear that if semiconductor technology is going to continue to evolve, it will require new technical innovations to solve the tough problems in design, verification, and implementation. Some of this will come from within the large IDMs / semicos, but based on history we also know that a good part of the fundamental innovation will come from startups and academia. The question is ... can the fundamental business models that drive the industry change and evolve as well?

      7 of 10 found this review helpful.
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