Mentor Graphics has acquired Sierra Design Automation a supplier of place and route semiconductor fabrication tools for 65nm and 45nm process nodes.

The reason behind the acquisition is the need to address the range of process technologies and new design for manufacture (DFM) methodologies which are expected to influence next generation chip designs. 

Sierra’s Olympus-SoC product for 65 and 45nm processes will address variations in lithography, process corners and design modes.

According to Pravin Madhani, president and CEO, Sierra Design Automation: “At 65 and 45nm, discontinuities such as process variation, design size, low power and DFM are creating a major disruption in physical design.”

According to Wally Rhines, CEO and chairman, Mentor Graphics: “Our leading-edge customers are telling us that they need a design-to-fab flow capable of handling dozens of process corners and multiple modes, all while addressing manufacturability challenges to achieve manufacturing closure of their designs.”

Mentor is paying $90m, payable 50 percent in cash and 50 percent in Mentor Graphics common stock.