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EDA Vendors Enjoyed Strong Q1

8/6/2013 01:10 PM EDT
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JanineLove
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Semi market impact
JanineLove   8/7/2013 4:47:48 PM
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"services revenue rose 23.8 percent to $101.9 million...Services growth usually indicates increased demand among semiconductor companies for design work than they can fulfill using their own employees. This is a leading indicator that the semiconductor market is improving and that, in a slightly longer timeframe, EDA will continue to improve, because extra employees will eventually need more tools."

Do you think some of the efficiencies,  co-design options, and other improvements from EDA vendors will have an impact on how much more growth (e.g more employees) companies will need?

BrianBailey
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Re: Semi market impact
BrianBailey   8/7/2013 5:27:33 PM
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All indications are that team sizes are growing for the most complex designs. The number of verification engineers per team is growing and additional tools are necessary for the back end physical design and verification. However, while this points to revenue increases, there is also commoditization going on with the older generations of tools meaning that prices for those is in decline. So, EDA revenues, which includes IP remains fairly constant at 2% of semiconductor revenues. It is not clear to me if this continues to hold in the future.

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