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Archive for April 8th, 2015

The Ever-Changing Semiconductor Landscape

Wednesday, April 8th, 2015

By some measures, the EDA market is a dynamic one. Many of our technological advances have come from startups and small companies, a list that gets refreshed as new market needs arise and as former independents get acquired or merge. The technology changes constantly to meet the needs of the semiconductor suppliers and system houses that are our customers. However, when it comes to market leadership EDA is incredibly static. The same three big companies have been at the top for more than 20 years now, we believe ever since Cadence swallowed Valid in 1991 and Synopsys moved into the third spot. Of course there has been some shuffling among Cadence, Synopsys, and Mentor, but that has happened only a few times.

This is in sharp contrast to the semiconductor business. Although Intel and Samsung have been at the top for more than ten years, several different companies have been number three and four during this period, with many shuffles along the way. There has been constant churn below the top slots, with several dramatic success stories for new vendors emerging during this same period. Since semiconductor companies are a main source of sales for EDA, we pay a lot of attention to the market and how it evolves. In this post we show one noteworthy market assessment and discuss some of the reasons for the changes and some of the implications for the industry as a whole.

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