Cadence Design Systems Rolls Out New Chip Design Software

Strategic Insights -

As semiconductors become increasingly complex, chipmakers are turning to design software makers like Cadence Design Systems to learn new tricks. Cadence, the leader in chip design software sales, aims to cash in on this trend with the launch of its latest product, the Encounter GXL Series. GXL is used to design the latest, leading-edge digital chips from Freescale Semiconductor, IBM, and ARM Holdings.

Key Takeaways:

  • Cadence Design Systems is introducing the Encounter GXL Series, a new chip design software that aims to help chipmakers create their most complex devices.
  • The Encounter GXL Series is used to design leading-edge digital chips for companies like Freescale Semiconductor, IBM, and ARM Holdings.
  • Cadence has signed sales agreements with Freescale, IBM, and ARM, and has partnered with Freescale as its main design software partner.
  • The Encounter products provide a new type of chip design software, with three versions: Encounter L, a low-level, easy-to-use version for simple chip design; XL, a more complex version for larger designs; and GXL, a top-of-the-line version for the most complex devices.
  • Cadence's software strategy involves providing easy-to-use software for simple chip designs and complex software for leading-edge designs.
  • Analysts say Cadence has a good strategy going, with analyst Daya Nadamuri saying, "Cadence is saying, 'For those of you who are price sensitive, we have a different package because we assume you aren't doing as much leading-edge design as others.'"
  • Morgan Stanley analyst Mark Edelstone says that chips today are incredibly complex and costly to design, so Cadence's software must be top-notch.

Statistics:

  • The global chip design software industry generates $4 billion in annual sales.
  • Cadence Design Systems and its archrival Synopsys account for half of the industry's sales.
  • Chekib Akrout, Freescale's vice president of design technology, says that Cadence and Freescale have signed a pact for a multiyear agreement covering hardware, software, and services.
  • IBM's chief technology officer, Bernard Meyerson, says that the features on chips have gotten so small that they're nearly at the atomic level, and that chipmakers are turning to software to solve current leakage issues.

Sources:

  • Cadence Design Systems
  • " Intel Segmentation Strategy" by Michael Fister (Intel)
  • Gartner Dataquest
  • Morgan Stanley
  • Freescale Semiconductor
  • IBM
  • ARM Holdings
  • Synopsys