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Electronic Design Automation (EDA)

Electronic Design Automation (EDA) is the industry that commercializes the tools, methodologies and flows associated with the fabrication of electronic systems.


The electronic design automation (EDA) industry is older than its name. The industry produces tools that assist in the specification, design, verification, implementation, and test of electronic systems. These systems can be fabricated as either an integrated circuit, or multiple of them mounted on a printed circuit board. In the early days, integrated circuits were designed by hand, but as the size of the designs grew, automation was required. The earliest tools assisted with drafting the design, quickly followed by tools that helped with place and route and functional verification.

Many of the tools were developed either in universities or in the companies developing the electronics. The commercial industry started in the early 1980’s when an increasing number of design companies realized that it would be cheaper to have tools produced by independent suppliers who would have a larger customer base.

At the end of 2013, the EDA industry had revenues of approximately $7B with growth in the mid-single digits. By 2022, the EDA industry revenues was at $11.10B USD and expected to hit $22.2B by 2030, with a 9.1% CAGR (compound annual growth rate).

The industry is divided up into a number of segments:

    • Chip Design and Verification
    • Printed Circuit Board (PCB) and Multi-Chip Modules (MCM)
    • Semiconductor Intellectual Property (SIP)
    • Services

The EDA industry is closely related to the semiconductor manufacturing industry, the embedded software industry and increasingly to industries such as photonics and micro-mechanical that are seeing continued miniaturization and integrations into electronic systems. The industry works closely with vertical users of the technology such as consumer, automotive, aerospace, medical and other industries that have specific needs.


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