By Steven Gary

What keeps people in our industry up at night? If you joined us at the DVCon Industry Leaders panel, moderated by engineer and blogger JL Gray (Cool Verification blog), you heard at least four things:

• We’re struggling to manage the growing complexity
• New tools and IP reuse are not sufficient
• Training next-generation engineers is lacking
• Metrics are needed

Distilling all four, at least to me, yielded a single, fundamental question: How do we as an industry get more productive? Is it the right high-level language? The hot new verification methodology?

Our panel (L-R) John Goodenough, Victor Melamed, Sheela Pillia, Steven Gary, and Jim Crocker (Photo by Joe Hupcey, Cadence Design Systems)

John Goodenough, Worldwide Director Design Technology, ARM, (far left in photo) answered the question with a question:

“How many designers do I have to deploy, train and how do I build this?”

Goodenough said asking about methodology is the wrong question. Asking about workflow is the right question because that’s what affects cost and schedule.

He noted that at ARM, “We’ve stopped talking about interoperability, and we’re now talking about enablement.”

So how does the adoption of new technologies and methods affect your project? How do you figure that out? I noted that engineers are conservative by nature but must push to reach the next level.  After adopting new tools and methodologies, they need a way to quantify how that affects productivity or adds risk to their development schedules.

John said:

“You can’t fix anything you can’t measure, so you have to measure it. It’s hard to measure things; it’s hard to measure intangible things, but you have to take a crack at it.”

Once you begin to measure things, you start to start to see the true workload costs. For example, the industry generally has very high expectations that design reuse will improve productivity simply because those blocks don’t have to be designed from scratch. Yet we’ve measured that and found that below a certain level of design data reuse on an IP block (around 50 percent), the savings from reuse rapidly approach zero. At very low levels, it can cost more to reuse an ip block than to design one from scratch. (We blogged about this paradox last fall: The Design Reuse Paradox).

In the end, it was clear that design and verification today is an enormously complex challenge—from fellow panelist Sheela Pillai’s task at AMD driving complex mixed-signal IP development or Victor Melamed at Ambarella trying to help his colleagues figure out the most effective high-level design language to choose or Jim Crocker from Paradigm Works grappling with engineering training. Quantifying those challenges is the first step toward predictable project outcomes and boosting the industry’s productivity—and getting a good night’s sleep.

P.S. To read more about the panel, please check out Cadence blogger Richard Goering’s post, another interesting perspective that’s definitely worth your time.

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By Ron Collett

We’re gearing up for DVCon (Feb. 22-25) in San Jose and not just because we’re participating in a panel. DVCon (on Twitter, @dvCon), which has emerged as a increasingly important event in recent years, features as keynoter Cadence CEO Lip-bu Tan. His topic gives a new voice to the mounting productivity crisis in semiconductor and system design.

According to an abstract of his talk:

“…the industry must approach the product development process much differently. The classic ‘brute force’ methods cannot scale to support the complexity of today’s SoCs and Systems. These traditional methods result in mounting costs and unpredictable schedules that are detrimental to profitability.”

• Cadence approaches the problem by giving engineers (among many other things) design exploration options that speed the implementation of the physical architecture of a chip.

• Numetrics approaches the problem by helping teams quantify the complexity of their design effort and build reliable project and staffing plans. This is crucial in an era where most IC projects slip schedule significantly.

Our vice president of professional services, Steve Gary, will speak on a panel just after Tan’s, titled “What Keeps You Up at Night?” It’s moderated by JL Gray from Verilabs, who writes the excellent Cool Verification blog; he’s posted a panel preview this week.  Also in the conversation will be John Goodenough from ARM Ltd., Sheela Pillai of Advanced Micro Devices, Inc., Jim Crocker from Paradigm Works, Inc. and Victor Melamed from Ambarella.

There are plenty of things keeping the industry up at night, but I think we’ll hear a lot of excellent ways to overcome the sleeplessness and drive productivity—and the industry—to the next level. Hope to see you there.

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In December, we were honored to participate in a Design & Reuse panel in Grenoble, France, titled “IP Reuse vs. IP Leverage: What’s the difference and what are the issues?”

Andrea Fortunato, our European director of professional services, represented us and gave an overview of the particular challenges that design reuse brings. He blogged about it right after the panel (Design Reuse: It’s Harder Than it Looks).

Our friends at D&R have just posted an audio Webinar of that panel. It’s definitely worth a listen if you’re designing with cores and trying to take advantage of reusability.

Have you had design reuse challenges recently? If so, feel free to comment on this post to let us know what they were and how you overcame them. Improving productivity in the semiconductor industry is a communal effort!

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(Summary: As the recession’s pain recedes, semiconductor companies have an excellent opportunity to take advantage of the economic crisis to drive productivity improvements throughout their R&D organization.)

The line “never let a serious crisis go to waste” was made famous a year ago by White House chief of Staff Rahm Emanuel, who was speaking to business leaders. For the semiconductor industry emerging from a sharp recession, now is the time to capitalize on the motivation implicit in Emanuel’s quotation.

Consider, first off, the proven benefits that companies get when they take advantage of a recession. A Bain & Company study found that:

• Twice as many companies move from laggards to leaders during a downturn than they do during good times.
• The majority of those companies that take steps to make that move sustained their gains long after business came back.

For those that don’t, the numbers are discouraging:

• One-third of banks and two-fifths of big American industrial companies fell from the first quartile of their industries in the recession of 2001-02, according to a McKinsey study referenced in The Economist.

There’s plenty of advice for companies willing to take advantage of a business slump. Dave Jones and Pierre Loewe, writing on ChiefExecutive.net, advise managers to re-assess “unarticulated” customer needs and redraw their industry ecosystems.

I’d amplify another of their key points: buttress your core competency. Today’s semiconductor industry is a different place than it was before the recession. The search for differentiation in core competencies needs to be focused at product development. This is crucial for fabless companies that don’t have their own manufacturing to create differentiation. But it’s also important for formerly “fabbed” companies making the transition to fabless.

Out with the old?

Some semiconductor companies emerging from this recession will be tempted to apply old templates to new designs. With understandable caution about hiring more engineers in the short-term, the tendency will be to do more with less—to demand more products faster with fewer engineers.

What will happen?

Unrealistic schedules and budget overshoot, for one thing. For another, the urge to crank out more products to take advantage of resuscitated demand will lead to portfolio-management problems.

It doesn’t have to be this way. Productivity improvements and best practices are commonplace in manufacturing; there’s no reason they can’t be employed in R&D. It would be a shame to waste a golden opportunity to exploit this moment in history, and, to finish Emanuel’s quotation, to take the “opportunity to do things you think you could not do before.”

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By Ron Collett

For the semiconductor industry, there not only is change in the air, there’s thoughtful debate about just what that change looks like.

I’ve been mulling over a couple of intriguing posts, one by another newly minted industry blogger, Sanjay Srivastava, CEO of Denali, and the other on EDN by Kaben Wireless Silicon CEO Paul Slaby.

In Sanjay’s blog, Conversation on Innovation, he’s been mulling how fabless semiconductor startups can survive in the current climate.

He argues (in Funding Fabless Semiconductor Startups) that solutions need to look at how and where money is invested, how we “stage” investments (i.e. valuing investments in IP differently than in silicon) and how we address software investment:

I believe if we get creative about the current fabless investment model, not every semiconductor opportunity needs to be a billion-dollar opportunity before it can attract meaningful investment.

In his EDN post and in a separate webcast, Slaby argues for a “semi-fabless” model:

The semi-fabless company is essentially a combination of an IP provider, a design house, and an outsourced R&D operation. Its core competence and strength lies in specialized R&D and product development capabilities whereas it outsources product delivery operations to the ‘old’ fabless company with the entire infrastructure and the pipeline to market already in place.

There’s no doubt the investment formula needs to be reconsidered. For a semiconductor company to break even, it needs $40-$100 million and six to eight years. More troubling, however, is the selling price of semiconductor startups has been steadily declining. In 2007 it was $160 million; in 2008 it was $95 million and in 2009 the average has been $65 million, according to an EE Times story referencing Lip-Bu Tan, chairman of Walden International, and now CEO of Cadence.

The good thing is there are a lot of “smartest guys in the room” in this industry, and collectively we’re shaping the industry’s future in three main ways:

• Companies are differentiating on products

• Executives, such as Sanjay and Paul and others, are helping drive the investment conversation

• And companies like ours are illuminating the differentiation and benefits of focusing on product-development productivity—fabless companies’ key differentiator today—and overall portfolio management.

This new differentiation is key; it’s key to how companies grow and gain market share and it’s key to the industry’s future.

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