Is the EDA industry "responsible?" Not unless EDA tools provide enough automation to keep design costs low, according to Gary Smith, chief analyst at Gary Smith EDA. Speaking at his annual industry forecast talk June 5, on the eve of the Design Automation Conference (DAC), Smith said that EDA tools need to provide more productivity so that engineering head counts can be lowered.
First, the good news. Smith expects EDA industry revenues to reach $4.89 billion in 2011, just slightly over the $4.87 billion reached in 2007 before the recession took hold. And it's all uphill from here, reaching over $6 billion in 2015. "The Great Recession is over," Smith proclaimed.
But EDA also has a responsibility, Smith said. Borrowing from a speech given by venture capitalist Lucio Lanza, Smith said that "EDA is responsible for developing the design tools that enable the IC design process, at a design cost that allows the ecosystem to operate at a profit." Profit, Smith noted, "is key and unfortunately isn't happening right now, and that's why we're seeing a lot of problems in the industry."
Click here to read more ...