Next up is Brian Bailey, Technology Editor/EDA, for Semiconductor Engineering, who has shared his forecast for EDA in 2014. 

“Over the next couple of years there will be an increase in ASIC starts, but not all of these will be for the latest technology nodes or be the massive chips we have come to expect. The new starts will be smaller chips that form the leaves of the Internet of Things, things such as sensors with small amounts of processing and communications. They will be targeting older processes, such as 90nm. Margins on these devices will be slim but volumes high. I see the designers of these products requiring a different mix of capabilities in their EDA tools and different price points. It may create an interesting opportunity for the second tier EDA companies to become significantly bigger.”