Breaking News
Blog

Semiconductor input costs vs output prices -- managing the squeeze

NO RATINGS
Page 1 / 2 Next >
View Comments: Newest First | Oldest First | Threaded View
srinathd
User Rank
Author
re: Semiconductor input costs vs output prices -- managing the squeeze
srinathd   8/20/2011 10:12:48 AM
NO RATINGS
Wally - I am not able to extrapolate from the charts what is the ratio of EDA tool cost vs.company revenues over the years. I understand that overall cost is reducing per transistor but as EDA companies are segmenting their features into different licenses, the EDA tool cost might be increasing with respect total revenues of companies. Any insight on this will help. Thanks. Srinath

wallyrhines
User Rank
Blogger
re: Semiconductor input costs vs output prices -- managing the squeeze
wallyrhines   7/21/2010 9:47:53 PM
NO RATINGS
The Gary Smith EDA – Proposed ITRS Cost Chart 2010 shows the combination of “Embedded Software Automation” tool costs and total software engineering costs in the blue part of Figure 5. Some of the system analysis costs are included in the EDA tool and engineering expense but it is undoubtedly small since the electronic system level automation tool part of the EDA TAM is only about 5% and that includes high level synthesis. The ESL panel at DAC this year delivered the impression that ESL analysis tools have finally come into their own and are being used for significant amounts of electronic system level design and analysis for chips. That said, you are certainly right that this is an area of opportunity for EDA, since much (most?) of the high level architectural analysis is still done by system engineers using their own proprietary tools. For embedded software, commercial tools predominate but virtual prototyping for hardware/software coverification is still (after 15 years of EDA sales) only about 1% of the EDA license and maintenance TAM.

DrFPGA
User Rank
Author
re: Semiconductor input costs vs output prices -- managing the squeeze
DrFPGA   7/21/2010 9:42:21 PM
NO RATINGS
Wally- Thanx for the response. It will be interesting to see how IP costs ramp over the next 5 years. Maybe you can give us an update in 2015...

wallyrhines
User Rank
Blogger
re: Semiconductor input costs vs output prices -- managing the squeeze
wallyrhines   7/21/2010 9:32:21 PM
NO RATINGS
DR. DSP, For data consistency, I’ve included only EDA license and maintenance revenue in the learning curve example. EDAC began reporting IP sales data, in its current form, starting in 2005 but there is no comparable history to use in an analysis. IP sales are certainly a growing part of the EDA market and a growing part of the cost of designs. Last year, they represented nearly $1 billion, if you include IP from companies like ARM, and over the last five years they would have increased “EDA costs” from 2 to about 2.5% of semiconductor revenue. On the other hand, most chip designs are derivatives of existing designs and incorporate lots of IP from previous designs done by the same company; this reuse cost has been ignored in the historical data. The difference now is primarily a “make vs buy” decision to reuse IP from other companies because, at least in some cases, it is less expensive than creating it yourself. Wally

KB3001
User Rank
Author
re: Semiconductor input costs vs output prices -- managing the squeeze
KB3001   7/18/2010 1:16:42 PM
NO RATINGS
Very interesting article. I wonder what's the share of the embedded software development costs and system analysis costs separately? Also, the article assumes that the system analysis tools do actually deliver what the customer wants. I think we are still far away from this, and end customers still have to do a lot of system analysis and embedded software development on their own.

DrFPGA
User Rank
Author
re: Semiconductor input costs vs output prices -- managing the squeeze
DrFPGA   7/16/2010 10:42:07 PM
NO RATINGS
I'd be interested in seeing some of the other project costs included too. For example, how about IP? Seems like EDA companies are betting on IP being a growing segemnt with recent purchases (Denali, Virage, etc).

More Blogs
The future could hold some scary scenarios as well as extremely exciting possibilities that may enable humankind to achieve new heights.
While Qualcomm may be late to the embedded market, it brings with it some interesting attributes that will appeal to a number of designers.
Here’s a list of the five biggest challenges facing the new generation of 25G Ethernet products in hopes they will be addressed sooner rather than later.
The first EDICON, covering RF, Signal/power integrity, and EMI, was a bit flat. But then, it was the first in the U.S.
Apple’s decision to remove the 3.5 mm headphone connector on the new iPhone 7, while continuing to use their proprietary Lightning connector, could mean more electronic waste as users discard their old headsets and many OEMs rush to develop new ones using Apple’s connector.

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed