HDMI, DisplayPort, MHL IPs + Engineering Team = Good Move
This news is certainly not as amazing that the acquisition of MIPS by Imagination, or Arteris by Qualcomm… but it shows that Cadence is building a complete Interface IP port-folio, brick after brick. The result will be that a complete wall is being built on the Synopsys road to monopoly and complete success on Interface IP market. When evaluating HDMI and DisplayPort IP segment, the two big names are Synopsys and Silicon Image, and Transwitch comes after, quite far from the two leaders. Let’s hope for Cadence that this lagging position was due to a lack of investment, rather than from the quality of the engineering team. In this case, the very strong motivation, and deep pockets of Cadence should help the company to head to head compete with Synopsys in the near future, in this IP market segment where Cadence had so far no product to offer… Thus, we think these asset acquisition will be generate new IP sales for Cadence. If we want to forecast the volume of these IP sales, it can be wise to see the starting point, or what was the latest available business figure for Transwitch.
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