EDA Tools, IP Sales Up

Europe, North America and Pac Rim show healthy growth, but Japan sales plunge 19%

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EDA sales grew 4.6% in the first quarter, down slightly year-over-year as sales in Japan dragged down the rest of the market. Sales in Japan dropped 19% year over year as the country’s electronics industry struggles for footing against rivals in China and South Korea.

North America and Europe grew 7% and 7.5% respectively, according to statistics provided by the EDA Consortium. Within those overall numbers, package design is up 20%, as companies prepare for stacked die and fan-outs. In addition, the move to advanced nodes and the need to improve reliability at established nodes drove logic verification sales up 27%.

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“RTL simulation was flat, but a bigger and bigger part is that there is no limit to how much verification companies want to do,” said Wally Rhines, board sponsor for EDAC’s market statistics service and chairman and CEO of Mentor Graphics. “Another highlight was IP, which grew 10.2% (including non-reporting companies such as ARM).”

Total revenue for the EDA industry in Q1 was $1.746 billion, up from $1.669 billion in the same period in 2014. Historically, EDA has tracked the overall semiconductor industry at 2% of total revenue. It currently is running at about 2.1%.

The largest category reported was computer aided engineering, at $638.6 million, up 6.6% over Q1 2013. IC physical design and verification accounted for $331.9 million, up 2.4%.

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