Domestic EDA giant Huada went public in nine days: What does it mean for Chinese chips?

EDA, Electronic design automation, translated as electronic design automation, refers to the use of computer-aided design software to complete the design of the chip's functional design, synthesis, verification, physical design, and other processes.

The source of the birth of a chip comes from EDA software. Therefore, EDA is also known as the mother of chips. It is the most upstream and core link of the chip industry chain and the source of the chip industry chain's neck.

At present, about 80% of the global EDA market is occupied by three companies called "EDA Big Three", Synopsys, Cadence, and Mentor Graphics.

And these three companies, without exception, were founded in the United States, among which Mentor Graphics has been acquired by the European company Siemens (the above picture has been changed to Siemens EDA), but it still does not change its pure American descent.

For this reason, EDA software is the "severe disaster area" when participating in the US-led cut-off of chip supply to China.

For 19 years, the three major EDA giants have successively cut off the supply of Huawei HiSilicon in accordance with the requirements of the United States. Although Huawei has purchased the current version of the product, the three giants still suspend the update of Huawei EDA software. In addition, they no longer sell to Huawei. New EDA-related products.

Huawei HiSilicon is the world's leading chip design company, and its main business is to use EDA software to design chips. Therefore, for HiSilicon, without EDA software, it is no different from a painter without a brush.

In the process of localization of China's chip industry chain, EDA software has become one of the most frequently mentioned core links that are no less difficult than lithography machines.

But in fact, China's first domestic EDA software was developed as early as the 1980s. In 1986, under the background of the embargo on China's integrated circuits, China began to invest in the research and development of EDA software systems and launched my country's first EDA software in 1993. The name is very Chinese and it is called "Panda System."

In 1998, "Panda"'s next-generation product "Panda 2000" was born. The EDA software can meet the needs of sub-micron and deep sub-micron processes, can handle millions of gates, and support high-level design.

Panda EDA Software

The company behind "Panda" is a unit called China Huada Integrated Circuit Design Center. In October 2003, China Electronics Information Industry Corporation and SDIC High-Tech Investment Co., Ltd., based on the original China Huada Integrated Circuit Design Center, integrated 7 "909 Projects" (in 1995, the Ministry of Electronics and the State Administration of Foreign Experts Beijing jointly held a symposium with domestic and foreign experts to provide ideas and suggestions to accelerate the development of China's integrated circuit industry. In November, the Ministry of Electronics made a special report to the State Council and confirmed the implementation of the 909 projects.) After the company was integrated, the China Huada Integrated Circuit Design Group was formed Limited company.

In 2009, China Huada Integrated Circuit Design Group Co., Ltd. separated its EDA department and established a company specializing in EDA software development and services, named Huada Jiutian.

Huada Jiutian is the protagonist of our article today. Chinas strongest EDA software company can be said to have completely experienced the history of Chinas EDA software from scratch, from being able to use it to have to carry the banner of EDA localization.

And Liu Weiping, the chairman of Huada Jiutian, joined the China Huada Integrated Circuit Design Center that year after graduating in 1989 to engage in EDA technology and product development. He is an out-and-out EDA expert and a veteran in the field of EDA in China. Grade figures.

What is the current position of BGI in the EDA field?

At present, in addition to the Big Three, Chinese local companies account for only about 10% of the domestic EDA market. Among the few remaining markets, Huada Jiutian can almost have more than half of the market and is well-deserved as the domestic EDA leader.

China's EDA market had a market size of about 6 billion around 2000.

And BGIs 20-year revenue is only about 400 million yuan. Therefore, considering the future domestic substitution is an inevitable trend. Although the EDA market is not as broad as other semiconductor segments, for BGI, which is alone in the face of other domestic competitors, there is still huge room for growth.

Then why can't domestic chip industry chain companies give orders to BGI for nine days together and directly help the brothers?

Lets put it this way, even if HiSilicons confession is so miserable, dont we still have to use the Big Threes EDA software. If we can really use BGIs nine days, can HiSilicon not be used in the current predicament.

The fundamental reason is that in most of the current chip design fields, especially the high- and mid-end chip design fields, it is impossible to use the products of the three giants at all.

On the one hand, the reason is that domestic EDA tools cannot support high-end chips or can only develop chips for certain fields.

For example, BGI is currently only able to provide about 1/3 of the EDA solutions required by the industry. In addition to the products of other small domestic companies, domestic tools can provide about 1/2 of the full-process EDA solution. In addition, BGIs tools are still breaking through 14nm, and the Big Threes tools have already been combated at 5nm.

On the other hand, it is ecological construction. A mature EDA tool needs not only the use of upstream chip design companies but also the support of downstream foundries and packaging and testing companies.

Regarding this point, Liu Weiping, chairman of BGI, explained, The link between design and process is EDA. If EDA and process are not well integrated, it will be difficult to play a role as a link. In terms of integration with the process, the three major EDA companies have natural advantages. They cooperate with wafer manufacturers in the new process development stage, so they have a good understanding of the process. In turn, they can better improve the tools to support advanced processes, while domestic EDA manufacturers can only take them after the process is developed. To some data."

Therefore, if BGI wants to become bigger and stronger in the EDA field, it must get the support and cooperation of upstream and downstream companies in the domestic industrial chain. After all, although EDA is important, the plate is a bit too small for the entire chip industry and does not require so many companies and tools.

And the reason why the "Panda" was quickly defeated by the Big Three decades ago was that the United States later lifted the ban on domestic integrated circuits. Once it can buy more advanced tools from abroad, in the highly competitive semiconductor field, Domestic companies will naturally choose more advanced products, so the "panda" will never be seen again.

On the evening of June 21, the Shenzhen Stock Exchange officially accepted BGI's GEM IPO application.

According to the description of BGI, the funds raised in this IPO project are 2.551 billion yuan, which are mainly used for circuit simulation and digital analysis to optimize EDA tool upgrade projects, analog design, and verification of EDA tool upgrade projects, and EDA for specific types of chip designs. For the research and development of EDA projects such as tool development projects, digital design synthesis, and verification EDA tool development projects, we must know that the total investment of BGI for nearly ten years from its establishment to 20 years was less than 500 million yuan. At this node, BGI's IPO not only demonstrated its own determination to tackle the high-end EDA field, but also sounded the charge of chip localization.Domestic EDA giant Huada went public in nine days: What does it mean for Chinese chips?

EDA, Electronic design automation, translated as electronic design automation, refers to the use of computer-aided design software to complete the design of the chip's functional design, synthesis, verification, physical design, and other processes.

The source of the birth of a chip comes from EDA software. Therefore, EDA is also known as the mother of chips. It is the most upstream and core link of the chip industry chain and the source of the chip industry chain's neck.

At present, about 80% of the global EDA market is occupied by three companies called "EDA Big Three", Synopsys, Cadence, and Mentor Graphics.

And these three companies, without exception, were founded in the United States, among which Mentor Graphics has been acquired by the European company Siemens (the above picture has been changed to Siemens EDA), but it still does not change its pure American descent.

For this reason, EDA software is the "severe disaster area" when participating in the US-led cut-off of chip supply to China.

For 19 years, the three major EDA giants have successively cut off the supply of Huawei HiSilicon in accordance with the requirements of the United States. Although Huawei has purchased the current version of the product, the three giants still suspend the update of Huawei EDA software. In addition, they no longer sell to Huawei. New EDA-related products.

Huawei HiSilicon is the world's leading chip design company, and its main business is to use EDA software to design chips. Therefore, for HiSilicon, without EDA software, it is no different from a painter without a brush.

In the process of localization of China's chip industry chain, EDA software has become one of the most frequently mentioned core links that are no less difficult than lithography machines.

But in fact, China's first domestic EDA software was developed as early as the 1980s. In 1986, under the background of the embargo on China's integrated circuits, China began to invest in the research and development of EDA software systems and launched my country's first EDA software in 1993. The name is very Chinese and it is called "Panda System."

In 1998, "Panda"'s next-generation product "Panda 2000" was born. The EDA software can meet the needs of sub-micron and deep sub-micron processes, can handle millions of gates, and support high-level design.

Panda EDA Software

The company behind "Panda" is a unit called China Huada Integrated Circuit Design Center. In October 2003, China Electronics Information Industry Corporation and SDIC High-Tech Investment Co., Ltd., based on the original China Huada Integrated Circuit Design Center, integrated 7 "909 Projects" (in 1995, the Ministry of Electronics and the State Administration of Foreign Experts Beijing jointly held a symposium with domestic and foreign experts to provide ideas and suggestions to accelerate the development of China's integrated circuit industry. In November, the Ministry of Electronics made a special report to the State Council and confirmed the implementation of the 909 projects.) After the company was integrated, the China Huada Integrated Circuit Design Group was formed Limited company.

In 2009, China Huada Integrated Circuit Design Group Co., Ltd. separated its EDA department and established a company specializing in EDA software development and services, named Huada Jiutian.

Huada Jiutian is the protagonist of our article today. Chinas strongest EDA software company can be said to have completely experienced the history of Chinas EDA software from scratch, from being able to use it to have to carry the banner of EDA localization.

And Liu Weiping, the chairman of Huada Jiutian, joined the China Huada Integrated Circuit Design Center that year after graduating in 1989 to engage in EDA technology and product development. He is an out-and-out EDA expert and a veteran in the field of EDA in China. Grade figures.

What is the current position of BGI in the EDA field?

At present, in addition to the Big Three, Chinese local companies account for only about 10% of the domestic EDA market. Among the few remaining markets, Huada Jiutian can almost have more than half of the market and is well-deserved as the domestic EDA leader.

China's EDA market had a market size of about 6 billion around 2000.

And BGIs 20-year revenue is only about 400 million yuan. Therefore, considering the future domestic substitution is an inevitable trend. Although the EDA market is not as broad as other semiconductor segments, for BGI, which is alone in the face of other domestic competitors, there is still huge room for growth.

Then why can't domestic chip industry chain companies give orders to BGI for nine days together and directly help the brothers?

Lets put it this way, even if HiSilicons confession is so miserable, dont we still have to use the Big Threes EDA software. If we can really use BGIs nine days, can HiSilicon not be used in the current predicament.

The fundamental reason is that in most of the current chip design fields, especially the high- and mid-end chip design fields, it is impossible to use the products of the three giants at all.

On the one hand, the reason is that domestic EDA tools cannot support high-end chips or can only develop chips for certain fields.

For example, BGI is currently only able to provide about 1/3 of the EDA solutions required by the industry. In addition to the products of other small domestic companies, domestic tools can provide about 1/2 of the full-process EDA solution. In addition, BGIs tools are still breaking through 14nm, and the Big Threes tools have already been combated at 5nm.

On the other hand, it is ecological construction. A mature EDA tool needs not only the use of upstream chip design companies but also the support of downstream foundries and packaging and testing companies.

Regarding this point, Liu Weiping, chairman of BGI, explained, The link between design and process is EDA. If EDA and process are not well integrated, it will be difficult to play a role as a link. In terms of integration with the process, the three major EDA companies have natural advantages. They cooperate with wafer manufacturers in the new process development stage, so they have a good understanding of the process. In turn, they can better improve the tools to support advanced processes, while domestic EDA manufacturers can only take them after the process is developed. To some data."

Therefore, if BGI wants to become bigger and stronger in the EDA field, it must get the support and cooperation of upstream and downstream companies in the domestic industrial chain. After all, although EDA is important, the plate is a bit too small for the entire chip industry and does not require so many companies and tools.

And the reason why the "Panda" was quickly defeated by the Big Three decades ago was that the United States later lifted the ban on domestic integrated circuits. Once it can buy more advanced tools from abroad, in the highly competitive semiconductor field, Domestic companies will naturally choose more advanced products, so the "panda" will never be seen again.

On the evening of June 21, the Shenzhen Stock Exchange officially accepted BGI's GEM IPO application.

According to the description of BGI, the funds raised in this IPO project are 2.551 billion yuan, which are mainly used for circuit simulation and digital analysis to optimize EDA tool upgrade projects, analog design, and verification of EDA tool upgrade projects, and EDA for specific types of chip designs. For the research and development of EDA projects such as tool development projects, digital design synthesis, and verification EDA tool development projects, we must know that the total investment of BGI for nearly ten years from its establishment to 20 years was less than 500 million yuan. At this node, BGI's IPO not only demonstrated its own determination to tackle the high-end EDA field, but also sounded the charge of chip localization.