The three listed companies, Huada Jiutian, Gaolun Electronics and Guangliwei, each have their own strengths. Huada Jiutian inherited the mission of “Panda System”, and its analog circuit design EDA process is one of the world’s leading solutions in the field. We have some internationally leading core technologies in memory, analog and mixed-signal circuit design. Guangli Micro has achieved a major breakthrough in the localization of substitution, breaking the long-term monopoly of foreign products in the field of integrated circuit yield improvement.

ALR121-S00S1 In the EDA market dominated by digital IC, Siercore represents the rapid development of domestic EDA in this field. After 20 years of deep development, it has developed from the initial prototype verification to the whole process covering architecture design, software simulation, hardware simulation, prototype verification and digital debugging, realizing EDA’s comprehensive cloud, forming a perfect digital front-end EDA solution.

In addition, some domestic EDA companies have also achieved global breakthroughs in key technology nodes. Core and semiconductor using simulation driven design, to provide IC, package to the system with fully independent intellectual property rights of the whole industry chain EDA solution, support advanced technology and advanced packaging, fully support 2.5D/3DIC Chiplet design.

At the same time, Hongxin Micro Nano announced in April that its latest self-developed static timing check tool CHIMETIME is expected to successfully complete the certification of Samsung’s 5nm EUV process in early 2024. Prior to this, the self-developed layout and wiring tool AGUDA and logic integration tool ROCSYN have successfully completed the Samsung 5nm EUV process certification in 2022 and 2023, respectively.

Although these domestic EDA companies fill the gap in the domestic market and show the potential to compete with international giants, from overseas past experience, established companies continue to acquire new companies, EDA development history is a history of mergers and acquisitions. Will the future of domestic EDA also follow such a trajectory?

ALR121-S00S1

Iii. M&a, investment and financing trends in the global and domestic EDA industry:

Recent mergers and acquisitions by overseas giants are frequent

On a global scale, recent mergers and acquisitions in the EDA market are frequent, showing the trend of strategic restructuring and technology integration within the industry. At the start of the New Year in 2024, for example, a major event in chip design was Synopsys’ $35 billion acquisition of Ansys, an engineering simulation software company. The merger, which aims to create a global leader in everything from chip to system design, demonstrates a typical strategy of expanding product portfolio and market presence through mergers and acquisitions, while also reflecting the strong technological and market complementarities of the two parties.

ALR121-S00S1 Then, on February 15, the day after Valentine’s Day, Japanese chipmaker Renesas Electronics announced the acquisition of Altium Limited, a leading global supplier of electronic design systems, for A $9.1 billion. This move not only strengthens Renesas’ competitiveness in the PCB-level EDA tools market, but also marks the deepening of the hardware and software integration strategy, which is expected to break through the revenue model of relying on a single License. Subsequently, Cadence also first on the “big play”, in March 5 announced the acquisition of BETA CAE, marking its official entry into the field of structural analysis. These M&A cases not only accelerate technology integration, but also expand the market boundaries and business scope of the participating companies. On March 20, Synopsys announced the completion of another round of acquisitions, this time with Intrinsic ID, a leading provider of physically unclonable functional (PUF) IP for system-on-chip (SoC) design.