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Cadence claims leadership in analogue/mixed signal

Posted: 08 Jun 2009     Print Version  Bookmark and Share

Keywords:EDA offering  EDA partner  R&D  IC packaging 

Cadence Design Systems Inc.'s CEO Lip-Bu Tan

Tan: We have a clear leadership in the analogue/mixed signal realm. We will continue to maintain this leadership.

Christoph Hammerschmidt caught up with Cadence Design Systems Inc.'s CEO Lip-Bu Tan at the recent CDN Live company event held in Munich, Germany.

EETimes: Cadence is currently emerging from a major management shake-up, accompanied by a loss of management talent. In addition, Cadence has lost its long-term position as the market leader in the EDA software market. Is Cadence falling back in terms of innovation and product quality?

Lip-Bu Tan: These are two questions. One refers to the management and one to market leadership. First of all, we are very committed to engineering leadership. Among the EDA software vendors we have the highest R&D budget (more than Rs.2,204.41 crore ($450 million)) and a strong focus to our core product offering. We have a clear leadership in the analogue/mixed signal realm, and the same holds true when it comes to verification and IC packaging as well as PCB packaging. We will continue to maintain this leadership.

In terms of market share, after having conducted extensive talks to our customers, I don't think we have lost much market share so far. I think we have to re-classify our revenue recognition. We went to a 90/10 three-year rateable model [with regard to our accounting method] and so far I think we hold on to what we have in terms of market share. It is very hard to tell who has the strongest market share, one year we are ahead of our competitors and then in certain years they are ahead. For this reason, I think it very hard to classify the market-share shift.

With regard to our management changes: they took place in October and I am very pleased with our current executive management team. The two leaders in the engineering team are superb, and I have a lot of faith in both, Chi-Ping Hsu [senior vice president, R&D, Implementation Group] and Nimish Modi [senior vice president, R&D, Front-end Group]. In terms of the field organisation, I am very impressed with the leadership Tom Cooley [senior vice president, worldwide field operations] has with the team and the chief strategy officer Charlie Huang " he is a very great supporter and my right-hand person. Again, I am very pleased with the organisation.

EETimes: Over many years, there was a kind of business model established in the EDA industry in which the larger companies drove their innovation by taking over enterprising start-ups. Is this business model running out of steam?

Tan: When we think about acquisitions, we want to walk first before we run. We are very focused on the EDA space and our core products and not on any adjacent area. Nevertheless, we continue to look for takeover opportunities. Chief strategy officer Charlie Huang is taking care of this topic. Will we do any investment or acquisition into a technology that fits into our core product? Absolutely, we are very actively looking. Are we currently planning any major acquisition? The answer is no.

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