EDA Leaders Poised for Growth

Founded in 1987, Cadence provides essential electronic design automation (EDA) software for the semiconductor industry. It segments its business into functional verification, digital IC, custom IC, system design, and semiconductor IP, focusing on differentiated IP and an AI offering called Cadence. Along with Synopsys,Dealroom has a profile for this one. Try Dealroom → Cadence is set to benefit from increasing chip complexity, expanding in-house ASIC design teams, and the AI capital expenditure boom, expecting to grow at 15-20% CAGR over the next five years, outpacing overall semiconductor industry growth.

EDA software from Cadence includes tools for simulating, designing, and verifying semiconductor chips, covering the entire design workflow.

Cadence generates revenue primarily through subscription-based sales. Their pricing models include:

Cadence is expected to benefit from the increasing complexity of chip designs and the growing demand for AI and custom silicon projects. EDA software captures 2-3% of semiconductor spending, with revenue tied to the number of chip designers and the complexity of tools needed.

Source: Data Gravity

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