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Cadence calls for industry to handle profitability gap

Posted: 10 May 2010     Print Version  Bookmark and Share

Keywords:EDA360  system design  profitability gap 

Cadence Design Systems, Inc. unveils its vision EDA360 to counter the threat of profitability gap by outlining an application-driven approach to system design and development. Cadence also calls on the semiconductor and electronic design automation (EDA) communities to address the growing "profitability gap" that threatens the vitality of the electronics industry.

According to the EDA360 vision, released during an event at the Tech Museum in San Jose, systems and semiconductor companies are undergoing a disruptive transformation so profound that even the best-known companies will be impacted. The EDA industry now stands at a crossroads where it must change in order to continue as a successful, independent market. Without this change, EDA will struggle to solve the increasingly complex problems customers are facing now and in the future.

Despite staggering consumer demand for advanced mobile computing devices and other compelling electronics devices, development practices are choking the innovation today's technology makes possible. In a traditional disaggregated development approach, hardware is developed first and the operating system (OS) and applications are added later. While the hardware and OS are fully integrated, applications are confined to the underlying hardware/software platforms.

In addition, established electronics companies are increasingly being challenged by game-changing new entrants that focus their innovation and differentiation on applications or "apps." These new entrants are now requiring semiconductor providers to supply "application-ready" platforms with hardware and software for a given application such as mobile computing. Directly addressing this shift in the ecosystem, EDA360 outlines an application-driven development model where hardware is designed and developed to dynamically meet the needs of the application.

"As founder of an organisation that is transforming the economics and technology of an industry so that we can improve opportunity for millions, I am constantly watching what others are doing," said Nicholas Negroponte, founder and chairman, One Laptop per Child. "Cadence has a vision and model with the potential to transform the economics and performance of the microprocessor industry and, by extension, devices every consumer takes for granted. The EDA360 manifesto outlines a vision that bears watching."


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