Design IP Growth Is Fueling 94% of EDA Expansion

Last June, the ESD Alliance (ESDA) has released Q1 2016 results for EDA (CAE, PCB & MCM and IC Physical), Silicon IP (SIP) and Services. Not a surprise for Semiwiki readers since 2013, the SIP category is recognized as the largest with $689 million revenues for the quarter, and four-quarters moving average increasing by 11.6 percent. Total ESDA revenues have increased by 4.3%, so I have tried to investigate more deeply the various growth sources. SIP represents $688.7 million out of $1962 million for the four categories, or 35% of the total. Let’s do some simple computing:
The SIP growth contribution is 11.6% * 0.35% = 4,06% of the total growth (94%+).

The total growth is 4.3%, so SIP contribution is 4.06/4.30, or 94.4% of the four quarter moving average increase of total ESDA revenues! If you prefer, EDA four-quarters moving average without SIP would have increased only by 0.24%. Not only SIP is the largest ESDA category, but SIP is responsible for most of ESDA growth, fueling this growth at 94%.

Can we say that the future of EDA is IP? Certainly yes! But let’s see the various consequences derived from this simple fact on Big 3 strategy, Design Automation Conference content or EDA analyst pertinence…

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