Synopsys Likely To Roll-Up The EDA Sector

Analysts are projecting positive trends for the electronics industry in the current year, with estimates ranging from 7% to 9% annual growth. Also, investment in R&D is expected to return after slowing last year. The increased demand is expected to drive growth in the semiconductor industry.

Conservative estimates predict 2010 to be a year of stabilization for the EDA space followed by growth in 2011, and 2010 is expected to be a year of industry consolidation. The largest player, Synopsys (NASDAQ:SNPS), is already acquiring smaller players in the market and will continue to do so. Cadence is trading at half of Synopsys’ market cap, which makes their acquisition currency weaker. Let’s take a look at the last quarter’s happenings.

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