Glossary term
EDA (Electronic Design Automation)
Software used to design and verify chips; a near-duopoly of Cadence and Synopsys sitting upstream of every modern semiconductor.
EDA (Electronic Design Automation) is the software used to design, simulate, and verify integrated circuits before they are manufactured. Cadence and Synopsys form a near-duopoly, giving the category recurring, high-margin revenue tied to every advanced chip designed anywhere. EDA sits upstream of the entire semiconductor industry, making it a structural beneficiary of rising design complexity. See Custom Silicon 101.