BEIJING--Cadence Design Systems Inc. today announced it will invest $50 million in China to enhance its sales, support, and services for electronic design automation in the country's booming EDA market.
Beginning in January, Cadence plans to move to a direct sales business model in China and invest heavily in infrastructure, according to company officials. The San Jose-based design automation supplier said it will double its workforce to about 80 employees in China, adding new offices and expanding training and development facilities.
"I'm confident these steps will help us build closer relationships with existing Cadence customers here while attracting new business," said Ray Bingham, president and chief executive officer of Cadence, who was in China for the announcement.
Citing a forecast from Dataquest Inc., the company said China's electronics design automation industry is expected to become the largest EDA segment in the Asia Pacific region by 2004, with a total value of $100 million. Dataquest estimates that China's EDA market grew 67% in 2000, according to Cadence.
To tap the market potential, Cadence said it will set up four offices in China--in Beijing, Shanghai, Chengdu and Shenzhen. It will also open a new wholly-owned subsidiary, called Beijing Cadence Electronic Technology Company Ltd. Cadence said it will double employment in China to about 80, covering technical support, sales, and marketing functions.
"Our direct sales model will enable us to better understand the needs of our local customers and quickly provide them with tailor-made solutions," said Matthew Chan, president of Cadance's Asia Pacific business unit and corporate vice president.
In addition to the expansion plans, Cadence said it is developing partnerships with several high-tech companies in China.