Although the large EDA vendors and other large service companies may offer a wider spectrum of services, small to mid-sized independent companies believe they are situated best to benefit in meeting the demand for design services. Steve Yates, president, believes there has been a shift in the mindset of potential customers. Start-ups lack the technology or engineering skills to realize a product. As a third-party, we become a melting pot for design and technology. Analysts said they believe the semiconductor and ASIC companies will have the edge in the market because design services are viewed as a natural extension of their existing business, thus providing the technology and the services.
Semiconductor companies can have leverage.
ASIC vendors recognize that it is imperative for their survival. It's important to cast the widest net possible. Consolidate and acquire Since it's impossible to replicate engineers, as one would with a product, and the supply of engineers isn't mushrooming at a phenomenal rate, companies wishing to expand are acquiring smaller shops. A wave of consolidations and mergers has gripped the market. ASIC Alliance has expanded to 200 employees.