Analysis of the global EDA software industry market competition landscape in 2020

"Small but fine" EDA software market is growing rapidly

EDA is the abbreviation of Electronic Design Automation (Electronic Design Automation) software. It refers to the use of computer-aided design (CAD, etc.) software to complete the functional design, synthesis, verification, and physical design (including layout, Wiring, layout, design rule checking, etc.) and other process design methods.

EDA software is the most upstream and high-end sub-industry of the IC (integrated circuit) industry chain. Using EDA tools, the entire process of chip circuit design, performance analysis, and IC layout design can be automatically processed by a computer.

EDA belongs to the "small but refined" industrial chain link in the integrated circuit industry. With the continuous development of large-scale integrated circuit, computer and electronic system design technology, the role played by EDA technology is rising at an alarming rate. According to data from the Electronic System Design (ESD) Alliance, the global EDA software market in 2018 was approximately US$9.7 billion; in the first quarter of 2019, global EDA revenue reached US$2.6 billion, a year-on-year increase of 16.3%. Preliminary estimates for 2019 The global EDA market has exceeded US$10 billion, reaching US$10.5 billion.

The Big Three stand together, with a combined market share of over 60%

At present, the global EDA software suppliers are mainly the three international giants Synopsys, Cadence and Mentor Graphic. The three EDA companies account for more than 60% of the global market. In 2018, Synopsys led the global market share, accounting for 32.1%; Cadence came second, accounting for 22.0%.

From the perspective of the services and products provided, the three companies can basically provide a full set of chip design EDA solutions. Among them, Synopsys (Synopsys, USA) has been committed to the development of complex system-on-chips (SoCs). Synopsys' logic synthesis tool DC (design compiler) and timing analysis tool PT (Prime Time) almost dominate the global EDA market. Cadence (Kadence Electronic Technology, USA) products cover the entire process of electronic design. The world-renowned semiconductor and electronic system companies all use Cadence software as their global design standard. Mentor Graphics (Mentor Graphics, acquired by Siemens in 2016) is not as comprehensive as the first two tools, but in some areas, such as PCB (printed circuit board) design tools, it has remarkable uniqueness.

Synopsys takes the lead in development volume, Mentor Graphics re-emerges

Comparing the operating conditions of the Big Three horizontally, it is not difficult to develop Synopsys has become the world's largest EDA company, with the largest revenue volume among the Big Three. In the 2016-2019 fiscal year, the scale of Synopsys' operating performance continued to expand. In fiscal year 2019, the company's operating income reached US$3.361 billion, a year-on-year increase of 7.68%.

Cadence has always been in a position second only to Synopsys. The company’s performance in the 2016-2019 fiscal year has also continued to improve. In fiscal 2019, the company has deepened its partnership with Samsung through a comprehensive agreement on digital customization and verification of product portfolios. With a large IP order, the business performance has grown rapidly, and the operating income was 2.336 billion yuan.

The development of Mentor Graphics has not been so smooth. Mentor Graphics encountered business difficulties in the 1990s. The development of software was seriously behind schedule and a large number of long-term customers were lost, making it difficult to compete with the other two companies. It was not until 1994 that the company's organizational structure was restructured, and it did not rise again. In 2017, the company was acquired by Siemens. After the acquisition, Siemens' digital factory business has developed rapidly and its market share has also increased.

Note: Synopsys’ fiscal year is from November 1 of the current year to October 31 of the following year.

Cadence's fiscal year is from January 1 of the current year to December 31 of the current year.

After Mentor was acquired by Siemens, it no longer separately disclosed revenue data.

From the perspective of net profit attributable to the parent company, Cadence did not lag behind Synopsys. On the contrary, in fiscal year 2019, Cadence increased its cooperation with Samsung, and its net profit also increased rapidly, reaching 989 million US dollars, a year-on-year increase of 185.84%. .

On the whole, the EDA Big Three have shown good business trends in recent years. Attributable to the reasons, the Big Three have all attached importance to the core competitiveness of technology. After continuous high research and development, they have continued to acquire and merge mature technologies of other companies. At the same time, it has received strong support from the government. At present, my country's local EDA companies still have a large gap with the international leading level in technology. They should continue to achieve technological innovation, improve financing operations, and break the competitive landscape of EDA vendors.


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