Global Semiconductor Fabrication Software Market 2017-2021
About Semiconductor Fabrication Software
Semiconductor fabrication software comprises design software tools (EDA tools) and production software tools. Electronic design automation (EDA) is a software tool that is used to design electronic systems. It can vary for computer or mobile device chips to chips used in satellites. The value of EDA tools is increasing over time due to the growing complexity of electronics. The growth of SoC circuits involves integrating multiple components on a chip while production software tools are used in the manufacturing of semiconductor devices.
Technavio’s analysts forecast the global semiconductor fabrication software market to grow at a CAGR of 1.6% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global semiconductor fabrication software market for 2017-2021. To calculate the market size, the report considers the revenue generated from licensing several software tools to semiconductor companies worldwide.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Semiconductor Fabrication Software Market 2017-2021
Technavio recognizes the following companies as the key players in the global semiconductor fabrication software market: Applied Materials, Cadence Design Systems, KLA-Tencor, Mentor Graphics, and Synopsys.
Other Prominent Vendors in the market are: Agnisys, Aldec, Ansoft, ATopTech, FEI, JEDA Technologies, Rudolph Technologies, Sigrity, Tanner EDA, Xilinx, and Zuken.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is growing acceptance of wearable technology. Wearable technology signifies devices like heart rate monitors, smartwatches, smart glasses, smart fabrics, and fitness bands. They offer features such as tracking of daily activities and communication services while also monitoring fitness levels. The devices function using mobile communications technology with the help of sensors that are integrated into them. The high potential of the market has resulted in semiconductor device manufacturers such as Toshiba to develop specialized ICs only for wearable technology.”
According to the report, one driver in market is increasing requirement for SoC technology. The last decade has witnessed a growth in the market for smart appliances and digital homes. This has resulted in the demand for high-power, efficient, and smart electronic devices from the end-user segment. These changes have been brought about by advances in device technology and the integration of billions of transistors on SoC. The high processing capability of these chips has made it possible to adhere to the demand for embedded graphics and multicore technologies. This development is in line with the growing complexity of chip designs in the semiconductor industry.
Further, the report states that one challenge in market is high inventory levels in supply chain. The semiconductor industry is cyclical in nature, which affects the operating results of vendors for a specific period due to severe downturns. Semiconductor device manufacturers face risks such as overcapacity, low demand, and high price competition. Changes in customer requirements due to new manufacturing capacity and advances in technology will affect semiconductor device manufacturers significantly during the forecast period. The overall expenditure of semiconductor device manufacturers is drastically affected during this period. They look at avenues where costs can be reduced, with R&D expenses being one of them. This results in underutilization of vendor facilities. During these cyclical periods, customers purchase less, delay delivery of ordered products, or cancel orders. The reduced net sales and backlogs, delays in revenue recognition, and excess inventory for the vendors act as a major challenge for them. High price competition due to low demand in the market affects their gross margins, and they look to sell the excess capacity and focus less on R&D and designing of chips.
pplied Materials, Cadence Design Systems, KLA-Tencor, Mentor Graphics, Synopsys, Agnisys, Aldec, Ansoft, ATopTech, FEI, JEDA Technologies, Rudolph Technologies, Sigrity, Tanner EDA, Xilinx, Zuken.
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