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EDA Sales Jump Most in Five Years

SAN FRANCISCO—Electronic Design Automation (EDA) sales posted in the largest annual increase in five years in the fourth quarter of 2016, based on broad strength across all product categories and regions, according to the Electronic System Design (ESD) Alliance.

Fourth quarter EDA sales totaled $2.46 billion, an increase of 19 percent compared to the fourth quarter of 2015, the ESD Alliance said. Sales increased by double digit percentages across all regions and most product categories, according to the data published by the organization.

It's been five years since we had a quarter that grew this much, and that [previous high-growth quarter] was coming out of a pretty significant recession,” Walden Rhines, an ESD Alliance board member and the chairman and CEO of Mentor Graphics Corp., told EE Times. 

Q416 Revenue Growth by Product Category 
SIP= Semiconductor Intellectual Property 
CAE= Computer Aided Engineering 
PCB & MCM= Printed Circuit Board and Multi-Chip Module 
Source: ESD Alliance Q416 Revenue Growth by Product Category
Q416 Revenue Growth by Product Category
SIP= Semiconductor Intellectual Property
CAE= Computer Aided Engineering
PCB & MCM= Printed Circuit Board and Multi-Chip Module
Source: ESD Alliance

Rhines said several major transitions in chip design are contributing to drive up the sales of EDA tools, including the availability of design rules for the 7nm node. “There's been a significant movement of customers into 14-, 10- and 7-nm designs in the last couple of years, and that generates a lot of significant revenue for verification and implementation,” Rhines said.

To read the rest of this article, visit EBN sister site EETimes

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