Essential Electronic Design Automation (EDA)

EDA Industry Growth

Relative Industry Sizes: EDA, IC, Electronics

Frank:

EDA is a critical part of the whole electronic product food chain. One might think it should represent a larger part of the electronics revenue. However, it is a very small part revenue-wise. This question does indeed come up almost every year at EDA conferences. They often have a panel discussing why the EDA industry is not growing faster and larger. They ask why it does not receive a larger percentage of revenue from the semiconductor industry. This is a little like comparing the price of a saw or screwdriver with the price of the house. The tools are certainly critical to the rapid building of the house and thus add great value. However, they are a small piece of the entire ...