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5nm Chip Improvement Costs Soar: EDA Giants makes a Fortune

EDA (Electronic Design Automation) software is dubbed the "mother of chip design," indicating its key position in the development of semiconductors.
5nm chip improvement costs soar EDA trio makes a fortune

Table of Contents

Introduction of EDA Tool

EDA (Electronic Design Automation) software is dubbed the “mother of chip design,” indicating its key position in the development of semiconductors. According to BK, data shows that in the second quarter of this year, three of the world’s TOP3 EDA software companies saw their revenue grow nearly 20% year over year. These three companies, Synopsys, Cadence, and Siemens, together have a 70% market share for EDA tools.

EDA Giants

For example, Synopsys‘ revenue for the second quarter of this year (May through July for the fiscal year) was $1.248 billion, an 18% increase year over year; the revenue share of EDA tools and IP licenses reached 90% of the revenue composition.

The Cadence is $858 million and the Siemens Digital Industrial Division is $493 million. Siemens reportedly started its big push into the digital industrial sector after acquiring Mentor in 2016.

The outside world will be the top three EDA manufacturers costing the sweetness of explanation at 5 nm as a proxy for the development costs of advanced semiconductor processes that are designed today due to Samsung, Qualcomm, Apple, Google, Meta, and other companies and develop 5nm chips, increase tool purchase and license fee payment scale, and profit margin is very important.

EDA industry analysis and forecast

According to analyst forecasts, the EDA sector will sustain a similar 20% growth as the semiconductor industry, with Synopsys forecasting annual sales of more than $5 billion, an increase of 18-19% year-on-year.

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