EDA Leaders Poised for Growth

Founded in 1986, Synopsys is a provider of electronic design automation (EDA) software, with segments in design revenue (65%), IP licensing (25%), and application software testing (10%). Synopsys and CadenceDealroom has a profile for this one. Try Dealroom →offer essential tools for the increasingly complex semiconductor design process. Both are expected to grow at 15-20% CAGR over the next five years, benefiting from chip complexity, in-house ASIC design teams, and the AI capex boom. Synopsys also offers a comprehensive IP portfolio and the Synopsys.ai software suite to optimize the EDA workflow.

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

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

Synopsys 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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