EDA is used in IC automation aided design and is the enabling cornerstone of integrated circuits. EDA (Electronic Design Automation) refers to the software tools that use computer-aided to complete the functional design, synthesis, verification, physical design (including layout, wiring, layout, design rule inspection, etc.) and other processes of VLSI chips. EDA is the most upstream and high-end industry in the integrated circuit industry chain, driving the development of chip design, manufacturing and terminal application. Using EDA tools, designers can start designing electronic systems from concepts, algorithms and protocols, complete the whole process of electronic products from circuit design, performance analysis to designing IC layout or PCB layout, optimize chip manufacturing process and drive the development of downstream links of chip industry chain.
The global EDA industry shows the trend of oligopoly. With the rapid development of semiconductor industry, the demand for EDA tools in global chip design and manufacturing is increasing, and the scale of EDA market is increasing year by year. According to semi’s data, the global EDA market scale in 2020 was US $11.467 billion. The year-on-year growth rate was 11.63%, and the compound growth rate from 2015 to 2020 was 7.74%. After more than 30 years of development and integration, the global EDA industry presents obvious characteristics of oligopoly. According to the data of CCID think tank, in 2020, the top three giants of the industry, Synopsys, cadence and Siemens EDA, accounted for about 77.7% of the global market share. Although China’s independent EDA software developed earlier, due to the influence of Western embargoes and other factors, the development process of domestic EDA is tortuous and slow, and the market share of manufacturers is still small.
The market share of domestic EDA tools is low, and point tools will become a breakthrough in the future. Before 1994, the Paris Coordinating Committee imposed an embargo on China, banning the sale of advanced electronic CAD software to China, and foreign EDA tools could not enter China. Under this background, China began to independently develop EDA tools, began to develop EDA panda system in 1988, developed a prototype in 1991, and officially came out in 1993. In 1994, the “Batumi” was dissolved, and foreign EDA companies quickly entered the Chinese market. At this time, Chinese enterprises have purchased the technology and tools of foreign EDA enterprises, and domestic EDA is facing new difficulties. In 2008, the national “nuclear high-tech” major science and technology project officially entered the implementation stage. The EDA field was supported by the state, and Huada Jiutian, Kelun electronics and other enterprises were born. At present, domestic EDA software has advantages in subdivided fields such as product process and technical analysis. Its relevant functions are close to those of internationally mature products. Individual point tools have powerful functions. It already has a number of EDA software technologies, tools and whole process design in specific fields.
It is imperative for domestic EDA companies to break through. It is imperative for domestic EDA companies to carry out differentiated competition and make a comprehensive breakthrough. The major EDA software suppliers in the Chinese market include Kelun electronics, Huada Jiutian, guangliwei, core vision, etc. Although these enterprises have a gap with overseas giants in the whole process products, they have their own strengths in different fields and carry out differentiated competition: (1) Galen electronics has international competitiveness in the key links of device modeling and circuit simulation. (2) Huada Jiutian is a leading EDA enterprise in China, providing EDA solutions in the direction of digital analog hybrid / full custom IC design, FPD whole process design and high-end SOC digital back-end optimization. (3) Guangli microelectronics has a whole process platform, which is used for automatic design of efficient test chip, high-speed electrical test and intelligent data analysis. (4) Six core software has high compatibility with other EDA products and services.
Investment suggestion: the development of mainland semiconductor industry will certainly promote the development of mainland EDA industry. It is suggested to pay attention to high-quality EDA companies such as Galen electronics, Huada Jiutian, Guangli micro and core vision.
Risk warning: technological innovation risk; Market competition intensifies risks; High end brain drain risk
