It seems a stretch to compare the business of EDA to the business of Yoga. One’s business to business, the other business to consumer. One has nothing to do with the other and it’s hard to picture one of the end-user applications that EDA enables in use in a school of this sort. Or so it seems. Yet, both markets are roughly $4-6 billion in yearly sales and are populated with many well-trained professionals, most of whom have studied for years to become experts in their chosen field. Every business in EDA or Yoga needs to market itself to promote itself, differentiate from competitors, build a sustainable business and make money.
Mentor Graphics Corporation announced that, according to the Electronic Design Automation (EDA) Consortium Market Statistics Service Report for 2010, the company has achieved a 50% worldwide market share in PCB design solutions. For over 12 years, Mentor Graphics® has been consistently executing on a vision and investment strategy to bring the most advanced design capabilities to the industry. Today, Mentor is supplying industry-unique capabilities that extend beyond the design of the PCB and integrate the multiple engineering disciplines necessary for complete product development and delivery.
SpringSoft, Inc. (TAIEX: 2473), says that its Laker Custom Layout Automation System with the Laker Custom Digital Router continues to penetrate the memory chip market and demonstrate success at implementing the high performance, low power requirements of current and next-generation designs. The company also revealed that Eon Silicon Solution Inc. (‘Eon’) joins the growing list of memory chip companies that are adopting Laker tools to realize productivity gains in the design of memory solutions for a broad range of industries and advanced applications. Eon has experienced a 3X increase in layout speed with the Laker solutions.
GLOBALFOUNDRIES has signed a strategic long term partnership agreement with IMEC and thus becomes a full IMEC core CMOS partner. IMEC’s sub-22nm core CMOS program aims at developing processes that can be used in high-volume manufacturing of future logic and memory ICs. The program encompasses material and device studies, tool and process step exploration, integration options and advanced characterization towards process technology platforms for the next generation of ICs, as well as exploring and developing the options for further generations.
The EDA Consortium (EDAC) has released its market statistics for the periods through 4Q10. The EDAC data show detailed product category and geographic revenues for the industry, to which I add bookings and industry profitability comments.
The good news is that one of the best managed EDA companies has decided that it is strong enough to go public. The bad news is that at this point the markets are in turmoil and it is not clear that such an offering will be as successful as it deserves to be.
In addition to the problems in the Arab world and the human and economic disaster in Japan, the machinations for the control of Mentor Graphics make for a very unstable market situation. Investors do not like to "take chances" with a new stock during times when they do not feel secure about the future direction of the market, even in the short term.
This research note will have some brief comments on the Cadence Design analyst meeting held in New York on February 23. In addition, with Mentor Graphics and Synopsys (and Magma Design) having reported their latest results, we can get a view of combined product bookings, from which we can gauge underlying growth for the majority of the industry.
According to the latest report on the PCB market, which can be purchased from Gary Smith at www.garysmitheda.com, Zuken was the second largest supplier of PCB design tools in the world, surpassed only by Mentor graphics. According to the report Zuken had 23% of the total $435.5 million market in 2009.
On Wednesday Synopsys reported the results of its operations for the first quarter of fiscal year 2011. The results are positive in view of the sluggish growth of the EDA industry that depends directly from its customers choices of the processing node used in manufacturing. For the first quarter of fiscal year 2011, Synopsys reported revenue of $364.6 million, compared to $330.2 million for the first quarter of fiscal 2010, an increase of 10.4%.
Just as a military commander can't befriend the troops, and a parent can't befriend the child, so a VC can't really befriend the executives of the client startup company. Why? Because the commander, the parent, and the VC all have to: a) lay down the law, and b) make tough calls – the motivation for which may be unclear or downright infuriating to the troops, child, or startup exec.