Prediction for 2013 – Business

1/18/2013 11:41 AM EST

Bob Smith - Senior Vice President of Marketing, Uniquify Inc.

In 2013, EDA Designline readers can expect to see the proliferation of IP in SoC designs continue to increase. As the industry is now ramping into the 28nm node and pushing beyond, the use of IP will be critical to containing costs and schedules for the next generation of Super SoCs. Opportunities abound for new innovations that will automate and streamline the selection, qualification, verification and implementation of IP. In addition, the industry is ripe for the emergence of new licensing, tracking and revision control methodologies that will simplify IP acquisition.

On the SoC design services front we will continue to see the ongoing transition as the older ASIC-like business model continues to lose favor to new service business models that offer greater transparency and flexibility. This new-generation services business will continue to grow and flourish in 2013 as the electronics industry struggles with a shortage of designers and design teams that have the expertise and experience in delivering successful designs at 28nm and below.

Brad Quinton - chief architect, Tektronix

The big 3 EDA players will be reduced to 2, one way or another. Otherwise it will be a dull year in EDA with no IPOs or other "big deals".

Andreas Veneris - Chief Executive Officer, Vennsa Technologies

I consulted the Delphic Oracle to predict the future. The oracle says that the New Year –– 2013 –– will be “tough” not only for EDA but for economy in general, due to persisting geopolitical concerns that are yet to be settled. This will set the stage for growth starting in 2014. If the Oracle’s prediction is true, I do not foresee further multi-digit acquisitions. The EDA market will take its time to “digest” the recent escalation of mergers before the next move.

Lip Bu Tan – CEO, Cadence

One trend that will accelerate is the return of the fully integrated OEM. This is illustrated by companies like Apple and Google who are taking control of their own hardware design and manufacturing to ensure fast innovation, IP security, supply chain efficiencies, and economic value.

For smaller companies to succeed, they must have the resources to provide differentiation, innovate quickly, and expand their core competencies organically or through acquisition.

These trends present a huge opportunity for EDA companies to build more strategic alliances with our global and local partners and customers.   Manufacturers touch Cadence at every part of the design chain, from design concept through manufacturing to market introduction. Our value at each point of that chain increases as we provide a clear path to market success.

Brett Cline - VP of Marketing and Sales, Forte Design Systems

The consolidation of the market is likely to continue, though another large player may begin to emerge in the next year.

Apache Design, an ANSYS subsidiary

[The] bifurcation [between high-end mobile or smart connected devices (SCD) and the traditional (classic) chips markets] is a key trend that the EDA industry needs to pay attention to in the upcoming years because it will have considerable impact on how we develop our technologies, as well as business models. Since the requirements can be widely different, tools developed for SCD chip designs may not necessarily adapt well for classic chip designs and vice versa. Investments made by tool providers will need to be aligned with the corresponding business opportunities. Even though the demands for mobile devices are growing, the number of SCD chip manufacturers is consolidating due to the highly specialized and competitive nature of this application segment.