How come there's twice as much activity/posts on the Cadence message board as opposed to the Synopsys one? I wish message-posters on the Cadence message board can be more positive about the future of Cadence rather than all the negativity and "doom and gloom" tune that seems to be the gist .....
Maybe we are all so glum is CDNS is fighting for its life, laying off 10% with god knows how many more leaving next year. On top of that, they have a raft of frivolous lawsuits, which will all consume resources to defend, AND we still have not seen audited financials!
Oh an by the way, the rest of EDA is in the tank as well. The business model is broken. The emerging markets don't honor IP the way the US and Europe does and there is a lot of "free" software being used in Asia right now. As more more designs starts head there, the EDA guys will make less unless they find a way to enforce IP laws...fat chance.
Finally, if you had taken $100, bought some beer and cigars 2 years ago, buried the rest in your backyard, you'd still have more money today than if you invested in EDA companies.
It's simpler than that. Companies purchase new EDA tools for 2 reasons- shifting to a smaller process (transistor) geometry raises problems not solved by the existing tools, and to increase engineering productivity.
Given the increasing cost of manufacturing mask sets, the reduced number of ASIC design starts, and the majority of companies not needing to move to geometries smaller than 90nm (my opinion), there's less of a need to buy the latest-and-greatest.
As far as productivity, the EDA industry has sold the same "Design Productivity Gap" between the number of transistors available, and the number that a design team can use within an average design cycle since the 1980s and the genesis of the 3d party EDA industry- only it's gone from 10k transistors to 10B transistors on the viewgraph.
In China and India productivity is less of an issue when management can 'flog the engineers' harder if they're falling behind- and the majority of Chinese chip designs are not at the leading-edge process geometries (again my opinion).
The observation that if your chicken walks out of your yard in China and into the neighbor's yard it immediately becomes 'his' chicken, and if you don't lock the door to your house it's 'OK' for somebody to steal something since you obviously did not want it leaving the door unlocked are cultural issues broader than respecting IP having a legal system in place to protect it's ownership.
Probably because Cadence is in midst of laying off over 10% of their employees, and Synopsys is not.
Magma's not doing well, either. But then again when people stop buying electronic gadgets and companies stop buying IT upgrades, EDA and the entire semiconductor supply chain (foundries, Semi IP suppliers, capital equipment manufacturers) will rapidly be 'sucking wind'.