Additional Meeting: EDA Growth Accelerates as Moore’s Law Slows
Event TypeAdditional Meeting
TimeSunday, December 5th5:00pm - 6:00pm PST
DescriptionIt may be counter-intuitive to argue that electronic design automation (EDA) industry could see accelerated growth because Moore’s Law is slowing down. In this presentation, I will walk you through my reasons why such could be the case. We believe the slowing Moore’s Law has led to design diversification with domain-specific chip designs replacing one-size-fits-all designs, has motivated systems companies to enter the silicon race, and has nurtured the recent renaissance of semiconductor startups. EDA, IP, and foundry are key enablers and beneficiaries of these trends. In addition, the slowing Moore’s Law means chip-level scaling must be complemented with package- or system-level scaling, which creates a greater need for system design and analysis that will significantly expand the scope of EDA as well as its market size. We are convinced that the strong growth of EDA in 2020 and 2021 was not a “Covid phenomenon” but the beginning of a new era that will feature strong double-digit growth for the EDA industry. Last but not least, we believe EDA can play a key role in mitigating the global chip shortage that may last beyond 2022, as foundries push more designs migrating to sub-20nm nodes. We argue design migration to sub-20nm nodes is an underappreciated alternative to ease chip shortage other than massive capacity additions at 28nm and above.

Charles Shi, PhD
Vice President | Research Analyst
Semiconductors & Semiconductor Equipment
Needham & Company, LLC