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EE Times-India > EDA/IP

EDA, IP revenue up 17% in Q3 '06, says EDAC

Posted: 19 Jan 2007     Print Version  Bookmark and Share

Keywords:EDA  EDA tools  IC design tool  chip design tool  EDA market 

Worldwide EDA and intellectual property (IP) revenue in Q3 of 2006 grew 17 per cent over the prior year quarter, according to a report issued by the EDA Consortium's (EDAC) Market Statistics Service (MSS). The report offers yet another indication that four years of flat revenue growth have come to an end.

The MSS report said that total EDA industry revenue, including IP and services, was Rs.5,932.39 crore ($1,309 million) compared to Rs.5,084.90 crore ($1,122 million) in Q3 of 2005. It noted, however, that six new reporting companies were added to the MSS between the third quarters of 2005 and 2006. Still, the MSS average annual growth rate, comparing the most recent four quarters to the previous four quarters, was 12 per cent at the end of the third quarter.

"Long-standing EDA categories are registering their strongest growth in at least five years," said Aart de Geus, EDAC chairman and CEO of Synopsys, in a statement. "This is alongside our most recently expanded segment, semiconductor IP, which is currently growing at a fast pace."

It's not the only optimistic report. Last fall, a report from Gartner Dataquest predicted that an investment spurt in design for manufacturing aware CAD tools would boost EDA growth in 2006 to 13.3 per cent. But the report said growth would slow in the second half of 2006. For 2007, the report said, EDA revenue growth is expected to be 8.5 per cent.

For Q2 of 2006, the MSS reported a 15 per cent EDA revenue increase compared to the same period in 2005 and cited a 10 per cent growth Q1 of 2006. The first two quarters of 2006 marked the first time in more than five years that EDA has strung together consecutive quarters of double-digit growth.

In Q3, the report said that total EDA revenue was up 16.1 per cent over the prior year quarter, total semiconductor IP revenue was up 24 per cent, and services revenue was up 3.5 per cent. Geographically, total revenue for these categories grew by 19 per cent in North America, 14 per cent in Western Europe, 8 per cent in Japan, and 27 per cent in "rest of world."

The number of EDA employees has also grown worldwide. The MSS tracked 25,018 EDA industry employees in the third quarter of 2006, up 11 per cent from 22,462 in the prior year quarter.

- Richard Goering
EE Times

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