At present, the global EDA is monopolized by Synopsys, Cadence and Siemens EDA. Comparing these three leading companies, who is the “King of EDA” in the world?
Major listed companies in the industry: Synopsys (SNPS), Cadence (CDNS)
The core data of this article: Synopsys, Cadence and Siemens EDA financial data, EDA market share, product layout
1. Comparison of corporate development history: the development of the three major companies is inseparable from mergers and acquisitions
The EDA industry has developed from the controversy of a hundred schools of thought in the 1980s and 1990s, and the world has formed a triad of Synopsys, Cadence and Siemens EDA.
Synopsys was founded in 1986. The founding team used to work at General Electric’s Microelectronics Center. The founder, Dr. Aarde Geus, was supervised by Professor Rohrer, the father of the SPICE simulation program at the University of California, Berkeley.
Cadence was formed by the merger of SDA and ECAD. SDA was established in 1983. The founding team was students from the University of California, Berkeley and researchers from Bell Labs.
The predecessor of Siemens EDA was Mentor Graphics. Mentor Graphics was founded in 1981. The founding team came from Tektronix, an Electronic manufacturing company in Oregon, USA; Mentor Graphics was acquired by Siemens in 2017, and Siemens renamed Mentor Graphics Siemens EDA in 2021.
Looking at these three global EDA leading companies, their growth is inseparable from continuous mergers and acquisitions of companies with competitive advantages in Point Tools.
2. Comparison of corporate business layout
——EDA product layout: different leading products, perfect product line
So far, the EDA product lines of these three major companies are very rich, covering all aspects of chip design, but each company’s leading products have their own characteristics. Synopsys focuses on digital chip design, static timing verification and confirmation, and SIP provision. At the same time, it lays out supporting full-process tools. Cadence focuses on analog, digital-analog hybrid platforms, digital backends, DDR4 IP, etc. Siemens EDA focuses on back-end verification, testability design, optical proximity correction, etc.
—— EDA industry chain extension: all extend to the downstream industry chain
In addition, these three leading EDA companies have all extended the downstream industry chain. At present, the products and services provided by Synopsys have covered EDA, IP and system integration, software services, etc. In 2020, Synopsys’ EDA business revenue accounted for 57%, and IP and system integration, software service revenue accounted for 33% and 10%.
Cadence’s business covers custom IC design and simulation, digital IC design and co-show, functional verification, IP, system design and analysis. These major businesses account for 25%, 19%, 22%, 14% and 14% of revenue in 2020, respectively. 10%.
Siemens EDA’s current business includes IC design, verification and manufacturing, IC packaging design and verification, electronic system design and manufacturing, and EDA services.
——Sales network layout: all have a global layout, and the Asian layout has different focuses
In terms of sales network layout, these three leading EDA companies have operations all over the world, and the United States is their largest sales market. In 2020, Synopsys’ revenue in the US market is 48.1%; Cadence’s revenue in the US market is 40.9%.
At the same time, these three companies also regard China as an important sales network market. These three companies have begun to deploy the Chinese market as early as the end of the 20th century. Among them, Siemens EDA has the earliest layout and entered the Chinese market in 1989. Synopsys currently accounts for 11.4% of China’s business revenue; Cadence accounts for 15.2% of China’s business revenue; Siemens EDA ranks third in China’s EDA market share.
However, the layout of the three in other Asian regions is slightly different. Synopsys pays more attention to the Korean market. In 2020, Synopsys will account for 10.6% of total revenue in South Korea. Cadence will focus on the Japanese market. In 2020, Cadence will account for 6.7% of total revenue in Japan.
Note: Siemens EDA will no longer release annual report data separately after 2018.
3. Comparison of corporate performance
——Operating revenue: Synopsys has a larger revenue scale
In terms of revenue, in 2020, Synopsys’ total revenue is 3.685 billion U.S. dollars; Cadence’s total revenue is 2.3 billion U.S. dollars. It can be seen that Synopsys has a larger revenue scale than Cadence.
Note: Siemens EDA will no longer release annual report data separately after 2018, so Siemens EDA will not be considered for revenue comparison.
-EDA market share: Synopsys leads the world
In terms of market share, Synopsys’ EDA business has the world’s largest market share, 32.14% in 2020; Cadence and Siemens EDA rank second and third, respectively, with 2020 market share of 23.4% and 14%.
Note: The ESD Alliance has not announced the market share of Siemens EDA, and the market share of Siemens EDA is a forward-looking estimate.
4. Forward-looking view: Synopsys is the “King of EDA” in the world
On the whole, Synopsys, Cadence and Siemens EDA all have a rich product line, and at the same time they all extend their business to the downstream of the industrial chain, and they have also deployed sales networks around the world. However, in terms of operating income and market share, Synopsys is currently slightly better. Therefore, forward-looking, Synopsys is the “King of EDA” in the world.
Note: The scoring standard of Siemens EDA’s operating income is based on its global EDA market share in EDA.