| There is an interesting recent article in EE Times called | | | | significance are ARM, Virage, and a host of smaller |
| "Are ESL and DFM false hopes?" Richard Goering | | | | ones like DSP IP vendor CEVA and Microprocessor |
| poses the question whether Electronic System Level | | | | core vendor MIPS. |
| Design (ESL) and Design for Manufacturability (DFM) | | | | Third, this combined industry should then merge with |
| software can save the EDA industry, seemingly | | | | the Semiconductor Equipment industry, providing a |
| caught in a spin cycle of same ol' same ol', fierce price | | | | seamless "Chip Infrastructure Portfolio". Who ought to |
| competition, high cost of sales, and an overall | | | | merge with whom will depend on how the First and |
| unattractive future. | | | | Second steps pan out. Key questions like who gets |
| Here are four things that I think ought to happen: | | | | Calibre, Mentor's DFM franchise, will determine a few |
| First, Mentor needs to cease to exist (chopped up and | | | | of the follow-on steps. |
| sold off by an LBO firm), thereby releasing some of | | | | Finally, the Packaging Foundries need to be worked |
| the unnecessary price-competition in EDA software. | | | | into this consolidation process, as a highly strategic |
| Magma needs to be acquired by one of the other two | | | | piece of the Chip Infrastructure Portfolio. With chip |
| EDA giants, Cadence or Synopsys, achieving more of | | | | packaging becoming more complex, the Amkors and |
| the same effect. Likely, this will adjust some of the | | | | Chip Pacs of the world have become eminently critical |
| structural disfunctions of the industry, and render better | | | | pieces of the equation. |
| P&Ls. | | | | Bottomline: Incremental steps have got us this far. |
| Second, EDA ought to merge with the IP Industry, and | | | | They won't suffice in the longer term. Bigger, bolder |
| consolidate the sales channel. The players of | | | | moves are necessary. |