Facets of growth in the EDA market

According to Dataquest, in 1995, EDA software revenue (excluding that from platforms, service, and maintenance) grew by 17.2%. In contrast, semiconductor revenues grew by 36%. Hence, despite impressive growth last year, if we use semiconductors as a surrogate for EDA buyers, EDA software revenue grew at only half the growth rate of its buyers. This is not a revelation but a consistent trend through the last few years. It cannot represent a comforting situation for EDA vendors; When times are good, they can accept these numbers, which demonstrate growth in EDA to the financial markets. The author argues about what will happen at the next downturn in the semiconductor business?.