LSI Logic's recent withdrawal from the structured Asic market continues to sent ripples through the industry, with EDA firm Synplicity now ending synthesis support for the sector.
Synplicity said it would gain a better return by investing in FPGAs, ESL and Asic verification.
"LSI Logic's recent decision to withdraw their RapidChip platform Asic product from the market prompted a reassessment of the market opportunity associated with our investments in the Asic product line," said Gary Meyers, Synplicity's CEO and president.
"The impact of their withdrawal delays the estimated time at which our Asic software business could become profitable.
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Meyers: LSI move delays profit for
structured Asic synthesis tools
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"While we continue to see growth potential in the structured Asic market, we see a greater return in our FPGA implementation, ESL synthesis for DSP, and Asic verification products," Meyers added.
The move also signals an end to Synplicity's support for cell-based Asic synthesis, although it will support existing customers, such as Fujitsu, LSI and NEC.
"About half of our ASIC R&D team will be re-deployed to other exciting growth opportunities," said Meyers.
Headcount at the firm will also be reduced by around eight per cent, mainly from its California headquarters, and cutting around $4.5m from its annual personnel costs.
In 2005, synplicity grew revenue nine per cent to reach $62m, with a net income of $6.6m.
Industry analysts expect the structured Asic market to continue to grow, reaching $1.5bn in 2008 from $239m in 2005.
www.synplicity.com