TIMES NEWS NETWORK (WEDNESDAY, MARCH 06, 2002 1:33:14 AM)

Sequence Design is a system-on-chip design closure company that enables SoC designers to bring high-performance and low-power integrated circuits quickly to tapeout stage.

The Santa Clara-based company has been formed through the merger of Sente, Sapphire Design Automation and Frequency Technology. Sequence Design is a member of Cadence Design Systems' Connections and Mentor Graphics' open door partnership programme.

Sequence Design's chief operating officer, Vic Kulkarni has been in the semiconductor and EDA industries for over 23 years. Currently his responsibilities at Sequence include managing the "concept to delivery" organisation consisting of R&D, product and corporate marketing, product specialists and consulting groups.

Sequence has partnered with Hyderabad-based QualCore Logic to set up a virtual development centre in Hyderabad. During his visit Kulkarni spoke to Sunil Rajanala on various issues concerning the semiconductor industry and the importance of Electronic Design Automation industry.

What is the current state of affairs in the semiconductor industry and what is the hot trend companies are pursuing?

The semiconductor industry has just experienced its most difficult year. However, most forecasts predict that the market will bounce back later this year. Semiconductors for communications applications like wireless devices and network processors will lead the recovery.

What do you think are the challenges that semiconductor companies face today?

On a macro level, a recessionary global economy is the biggest challenge. But as demand for electronics picks up, so will the demand for semiconductors. The corporate challenges that semiconductor companies face include:

(a) building ever increasing capabilities onto a single chip. The systems-on-chip of today include all the components that had been spread out over a full motherboard.

These chips are now being designed at the nanometer technology level, something truly microscopic;

(b) Tight time-to-market windows to get these SoCs to market. The chip for the playstation for instance is very sophisticated and must get into the game itself in time to capture holiday sales, and
(c) Designing smaller chips for lower-power, lower-voltage and at higher performance levels.

How are these challenges being addressed?

The challenges are addressed through collaboration among semiconductor companies, foundries, EDA companies and IP providers. For example, Sequence has developed technologies critical for the SoC design in the nanometer technology.

We will announce our low-power and low-voltage initiative for nanometer design. Power management is one of Sequence's core competencies.

The EDA industry seems to be finally getting eyeballs.

Four of the top six IPOs in 2001 were from the EDA industry. The value of this technology is finally being recognised. For instance, one of our customers used Sequence technology on a chip for a consumer electronics application. As a result of using the tool, they saved $1 on packaging costs.

Multiply that by 10 million units shipped and that is a saving of $10 million, more than a 100 fold return on investment. That's that value we are talking about.

What growth is the EDA industry expected to register this year?

The industry is estimated at approximately $4 billion. Gartner-Dataquest forecasts that the industry will grow to $6 billion by 2004.

How has the tech slowdown affected the EDA industry?

The slowdown has certainly effected customer budgets. But the big players in particular have continued to pursue high-performance design. A levelling and then improvement of the global economy will create wealth that will drive demand for consumer electronics.

The expansion of global networks for wireless and fixed line communications will continue, the need for entertainment and gaming will continue, the increased need for electronics in automobiles will continue, the need for security applications is sadly needed. And there are a host of markets yet to be uncovered through nanotechnology and micro-electro-mechanical systems.

Most of companies in the EDA industry are small and may lack adequate capital to make huge investments in R&D. What strategies would you suggest for such companies?

Keep your eye on the prize. Make a commitment of the percentage of revenue required to continue to develop innovative technology. For the leaders in our industry that percentage is in the mid-twenties.

However, also recognise that all the expertise does not reside within your own company. You may need to go outside your company to acquire technology demanded by the marketplace.