 | |
 Headquarters in San Jose, California | |
| Company type | Public |
|---|---|
| |
| Industry | Software |
| Predecessors |
|
| Founded | 1983; 42 years ago (1983) in San Jose, California as Solomon Design Automation (SDA), renamed Cadence Design Systems in 1988 |
| Founders | |
| Headquarters | San Jose, California, U.S. |
Key people | Anirudh Devgan (president,CEO) |
| Revenue |  US$4.64 billion (2024) |
| US$1.35 billion (2024) | |
| US$1.06 billion (2024) | |
| Total assets | US$8.97 billion (2024) |
| Total equity | US$4.67 billion (2024) |
Number of employees | approx. 11,700 (December 2024) |
| Website | cadence.com |
| Footnotes / references [1] | |
Cadence Design Systems, Inc. (stylized ascādence)[2] is an Americanmultinational technology and computational software company[3] headquartered inSan Jose, California.[2] Initially specialized inelectronic design automation (EDA) software for the semiconductor industry,[4] currently the company makessoftware andhardware for designing products such asintegrated circuits,systems on chips (SoCs),printed circuit boards,[3] andpharmaceutical drugs, also licensingintellectual property for the electronics, aerospace, defense and automotive industries.[5]
Founded in 1983 inSan Jose, California,[6] Cadence Design Systems began as anelectronic design automation (EDA) company named Solomon Design Automation (SDA).[4] SDA's cofounders includedJames Solomon,Richard Newton,[4] andAlberto Sangiovanni-Vincentelli.[4][7] Cadence was formed by the merger of SDA andECAD. A public company,[4] ECAD had been co-founded by Ping Chao, Glen Antle, and Paul Huang in 1982.[4][failed verification] Cadence Design Systems was officially formed through the 1988 merger of SDA and ECAD,[4] withJoseph Costello appointed both CEO and president of the newly combined company. After the merger, Cadence began trading on theNew York Stock Exchange and Costello oversaw further mergers and acquisitions.[4]
In 1989, the company acquiredGateway Design Automation for $72 million.[8] In 1990 it acquired Automated Systems Inc., and in doing so added "board design to its existing line of chip design software."[9] In 1991, Cadence acquired its rivalValid Logic Systems for around $200 million, its biggest acquisition yet. The revenues of the combined company were $390 million, according to theNew York Times.[4]
In 1996, Cadence acquired High Level Design Systems,[10] at which point Cadence had 3,300 employees and $742 million in annual revenue. Following the resignation of Cadence's original CEO Joe Costello in 1997, Jack Harding was appointed CEO.[11] Ray Bingham was named CEO in 1999.[12] Cadence purchased Ambit Design Systems for $260 million, which made tools forsystem-on-a-chip technology, in 1998,[13] andOrCAD Systems in 1999.[14] Cadence acquired Quickturn Design Systems in 1999, preventing ahostile takeover attempt byMentor Graphics.[15]
Under urging by executives such as Jim Hogan and executive vice presidentPenny Herscher, between 2001 and 2003, Cadence purchased a number of implementation tools through acquisition, such as Silicon Perspective, Verplex,[16] andCelestry Design.[17] The acquisitions were apparently in part to counter the 2001 purchase ofAvanti bySynopsys, as Synopsys had become their primary market rival.[16] In 2004, Mike Fister became Cadence's new CEO and president, with Ray Bingham becoming chairman. The former chairman, Donald L. Lucas, remained on the Cadence board.[18] Between 2004 and 2007, Cadence purchased four companies, including the software developerVerisity, and in 2006, it spent $1 billion instock buybacks.[6]
In 2007, Cadence announced it would be introducing a new chip-making process that laid wires diagonally as well as horizontally and vertically. In June 2007, Cadence had a market value of around $6.4 billion. That year, Cadence was rumored to be in talks withKohlberg Kravis Roberts andBlackstone Group regarding a possible sale of the company.[6] Cadence withdrew a $1.6 billion offer to purchase Mentor Graphics in 2008.[19] Also that year, Cadence's board appointedLip-Bu Tan as acting CEO, after the resignation of Mike Fister; Tan had served on the Cadence board of directors since 2004.[20] In January 2009, the board of directors of Cadence voted unanimously to confirm Lip-Bu Tan as president and CEO.[21] In 2011, it purchasedAltos Design Automation.[22] Subsequent notable acquisitions includedCosmic Circuits[23] andTensilica in 2013,[24]Forte Design Systems in 2014,[25] and theAWR Corporation in 2019.[26]
Cadence had 9,300 employees and annual revenue of $3 billion in 2021.[5] Most of its revenue came from licensing its software and intellectual property.[27] In April 2021, following aWashington Post report on the use of Cadence andSynopsys technology in thePeople's Liberation Army'smilitary-civil fusion efforts,[28] U.S. legislatorsMichael McCaul andTom Cotton requested that theUnited States Department of Commerce tighten controls on the sales of semiconductor manufacturing software.[29][30] On December 15, 2021,Anirudh Devgan assumed the role of Cadence president & CEO, after having been named Cadence president in 2017. Lip-Bu Tan retired as CEO and became executive chairman[31] and left this position and the board in May 2023. In 2021, Cadence launched anartificial intelligence platform to streamline processor development.[32]
Although most of Cadence's customers for decades were "traditional semiconductor firms," around 40% of Cadence's revenue by 2022 came from customers who were "systems" oriented, or seeking products tailored for various industries that utilized chips in a central role. Cadence was also increasingly designing customized chips for clients and having them manufactured by third parties such asTaiwan Semiconductor Manufacturing, a practice which had become more popular in the face of worldwide chip shortages and shipping issues, according toReuters.[13] By late 2022, Cadence had clients such asTesla andApple Inc.[13] Cadence acquiredOpenEye Scientific Software for $500 million in September 2022, rebranding the company OpenEye Cadence Molecular Sciences and making it into a business unit.[5] OpenEye signedPfizer as a software client in October 2023.[33]
Cadence purchased several businesses fromRambus in 2023.[34] In February 2024, Cadence "quietly stepped into the supercomputer business," according toTechRadar, when it unveiled the M1, its own supercomputer designed to runcomputational fluid dynamics (CFD) while utilizing AI.[35] In June 2024, Cadence purchased BETA CAE Systems.[36]
In January 2025, Cadence announced the acquisition ofSecure-IC, an embedded security IP platform provider; the acquisition is expected to close by mid-2025, following the usual regulatory approvals and other closing conditions, and be immaterial to 2025 revenue and earnings.[37]
In mid-2025, theTrump administration briefly paused the issuing of licenses for exports of American EDA software to China, including Cadence products.[38][39] In July 2025, it was announced that Cadence would plead guilty to violating U.S.export controls and pay US$140 million.[40]
On September 4, 2025, Cadence Design Systems announced it would acquire the design and engineering business of Stockholm-basedHexagon AB for €2.7 billion (approximately $3.16 billion) in a stock-and-cash deal.[41] The acquisition includes Hexagon'sMSC Software business, a provider of engineering simulation and analysis software and workflows.[42]
Originally known as a creator ofelectronic design automation (EDA) software,[13] the company currently develops software, hardware[43] andintellectual property (IP) used to design chips,[44]chiplet-style products,[45] andprinted circuit boards,[9] while also selling hardware systems that run its chip design software.[43]
It also has tools for "electromagnetics, thermal and computational fluid dynamics in the high-tech electronics, aerospace and defense and automotive sectors,"[5] and according toInvestor's Business Daily in 2023, it specializes in products for fields such as "artificial intelligence and machine learning, cloud computing, 3D technology, and AI-enabled big data analytics."[46] Among market applications are "hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and health care."[5]
The company develops a number of technologies for creating custom integrated circuits. For example, itsVirtuoso Platform,[47] later renamedVirtuoso Studio,[48] incorporates tools for designing full-customintegrated circuits.[47] In 2019, Cadence introduced itsSpectre X parallel circuit simulator, so that users could distribute time- and frequency-domain simulations across hundreds of CPUs for speed.[49] Cadence also offersAWR, aradio frequency tomillimeter wave design environment for designing5G/wireless products. AWR is used for communications, aerospace and defense, semiconductor, computer, and consumer electronics.[50][51]
Cadence has a number of digitalimplementation andsignoff tools, includingGenus, Innovus, Tempus & Voltus, among others. In 2020, Cadence integrated its Innovusplace and route engine and optimizer into GenusSynthesis.[52]Stratus is Cadence'shigh-level synthesis tool, and is used to create RTL implementations fromC,C++, orSystemC code.[53] Other formal verification and signoff tools include Conformal Equivalence Checker,[54] Joules RTL Power Solution,[55] Quantus Extraction Solution,[56] and Cadence's Modus DFT Software Solution.[57]
Cadence has developed a number offormal verification products for chip design.JasperGold is aformal verification tool, initially introduced in 2003[58] and upgraded with machine learning in 2019.[59]vManager is a verification management tool for tracking the verification process.[60][61] Cadence announcedPerspec System Verifier in 2014 for defining and verifying system-level verification scenarios,[62] with Perspec made compatible with theAccellera Portable Test and Stimulus Standard (PSS) several years later.[63] Introduced in 2017, Cadence's parallel simulatorXcelium is based on a multi-coreparallel computing architecture.[64]
In 2015, Cadence announced thePalladium Z1hardware emulation platform,[65] for verifying billion-gate designs.[66] which was based on emulation technology from Cadence's 1998 acquisition of Quickturn.[15] Cadence announced Palladium Z2 in 2021 as a successor to the Z1 platform with improved performance.[67][68]
TheProtiumFPGA prototyping platform was introduced in 2014,[69] followed by the Protium S1 in 2017, which was built onXilinx Virtex UltraScaleFPGAs.[70] Protium X1 rack-based prototyping was introduced in 2019,[71] which Cadence claimed supported a 1.2 billion gate SoCs at around 5 MHz.[72] with Palladium S1/X1 and Protium sharing a single compilation flow.[73] In 2021, Protium X2 was announced; Cadence claimed a 1.5X performance and 2X capacity improvement over Protium X1.[74][75]
Cadence suppliessemiconductor intellectual property (SIP) blocks, coveringinterface design,USB,MIPI,ethernet,[76] memory, analog,SoC peripherals, anddata plane processing units. Cadence also develops chipverification technologies including simulators andformal verification tools.[citation needed] Cadence developsTensilicaDSP processors for audio, vision, wireless modems, and convolutional neural nets. Tensilica DSP processors IP in 2019[77] included: Tensilica Vision DSPs forimaging,vision, andAI processing;[78][79] Tensilica HiFi DSPs for audio processing;[80][81] Tensilica Fusion DSPs forIoT;[82] Tensilica ConnX DSPs forradar,lidar, and communications processing;[83][84] and Tensilica DNA Processor Family forAI acceleration.[85][86] In 2021, Cadence launched the Tensilica AI Platform to accelerate AI SoC development and improve performances.[87]
The company provides several tools for the design ofprinted circuit boards (PCB) and ofchip packages. ItsAllegro Platform covers co-design ofintegrated circuits, packages, and PCBs on industrial scale. TheOrCAD/PSpice product line aims at smaller design teams and individual PCB designers.[88]OrbitIO Interconnect Designer is a die/package planning & route optimization tool.[89]InspectAR usesaugmented reality to map out complicated circuit board electronics for real-time labelling of boardschematics.[90]
The company has a number of tools forsystem analysis.Sigrity offers tools for signal, power integrity, and thermal integrity analysis and IC package design.[91] Introduced in April 2019 as part of Cadence's expansion into system analysis,Clarity is a 3Dfield solver for electromagnetic analysis, that uses distributedadaptive meshing to partition jobs across multiple cores.[92] In September 2019, Cadence announcedCelsius, a parallel architecture thermal solver that uses finite element analysis for solid structures andcomputational fluid dynamics (CFD) for fluids.[93]Cascade Technologies, Inc includes hi-fidelity CFD solvers for multiphysics analysis of turbulence fluid flow.[94] Acquired by Cadence from Pointwise in 2021,Fidelity Pointwise is for computational fluid dynamics (CFD) mesh generation.[95]
Cadence in 2021 acquired a number of system analysis products from NUMECA,[96] known for software tools used in the automotive, marine, aerospace, and power generation industries.[97] Among the tools wereFidelity (formerly known as OMNIS), acomputational fluid dynamics (CFD),mesh generation,multi-physics simulation, and optimization product.[96] ItsCadence Reality digital twin platform creates manipulatable digital models of designs or factories.[98]
Cadence Design Systems in February 2024 launched itsCadence Millennium Enterprise Multiphysics Platform, or Millennium M1. The hardware/software combination was designed for creating digital twins.[99] It draws from Cadence's older Fidelity CFD suite.[100]
Cadence'sOpenEye Scientific division has computational molecular modeling and simulation software used by pharmaceutical and biotechnology companies for purposes such as drug discovery[5] and antibody discovery.[101] TheOrion is OpenEye'ssoftware-as-a-service platform.[102] OpenEye Scientific has its headquarters inSanta Fe, New Mexico.
According toReuters, in 2023 Cadence has been "providing tools to design chips for AI" and "adding AI into its own software to help in the complex process of designing chips."[43]Cerebrus was released in 2021, and is amachine learning-based chip design software which utilizesreinforcement learning and is meant to automatically optimize the Cadence digital design flow.[103][32] In 2022, Cadence introduced the AI platformOptimality Intelligent System Explorer, a system design tool with multiphysics system analysis software. Designed to be compatible with Clarity 3D and SigrityX,Microsoft was an early adopter.[104] In September 2023, Cadence released software calledChipGPT, allowing companies to create custom silicon with assistance from AI.[105]
In 2016, former Cadence CEOLip-Bu Tan was awarded the Dr. Morris Chang Exemplary Leadership Award by the Global Semiconductor Alliance.[106] In 2019,Investor's Business Daily ranked Cadence Design Systems #5 on its 50 Best Environmental, Social, and Governance (ESG) Companies list.[107] In 2020, Cadence ranked #45 onPeople magazine's Companies that Care list.[108]Fortune magazine named Cadence to its 100 Best Companies to Work For list for the sixth consecutive year in 2020.[109] In 2021, Anirudh Devgan was awarded the prestigious IEEE/SEMI Phil Kaufman award and in 2022 was inducted into National Academy of Engineering.
In May 2022, theFormula 1 motor racing teamMcLaren announced a multi-year partnership deal with Cadence.[110] Cadence partnered with theSan Francisco 49ers in April 2023 on a several year technology project to fix energy efficiencies atLevi's Stadium. The deal also gave Cadence the naming rights to the team's mobile app.[111]
| Year announ- ced | Company | Business | Value (USD) | Refe- rences |
|---|---|---|---|---|
| 1989 | Gateway Design Automation | Simulation software | $72 million | [8] |
| 1990 | Automated Systems, Inc. | PCB Design Automation | $23 million | [112] |
| 1991 | Valid Logic Systems | Gate-level design | $198 million | [113][114] |
| 1993 | Comdisco Systems | Digital signal processing & communications design | $13 million | [115] |
| 1996 | High Level Design Systems Inc. | Advanced design technology for integrated circuits | $94 million | [10] |
| 1997 | Cooper & Chyan Technology UniCAD | Placement and routing (Specctra AutoRouter) and UniCAD (PCB Design) | $422 million | [116][117][118] |
| 1998 | Ambit Design Systems | System-on-a-chip technology | $260 million | [13] |
| 1998 | Bell Labs Design Automation | Simulation and verification software | $45 million | [119] |
| 1998 | Quickturn Design Systems | Emulation hardware | $253 million | [120] |
| 1999 | OrCAD Systems | PCB & FPGA design | $121 million | [14] |
| 2002 | IBM's DFT tools & group | Design for testing | not disclosed | [121] |
| 2003 | Celestry Design | Dense modeling, full-chipcircuit simulation | not disclosed | [17] |
| 2001- 2003 | CadMOS Plato Get2Chip Silicon Perspective Simplex | CadMOS (signal integrity), Plato (routing), Get2Chip (logic synthesis), Silicon Perspective Corp. (floor planning and placement), Simplex (extraction and power analysis) | multiple | [16] |
| 2003 | Verplex | Formal verification, equivalence checkers | not disclosed | [122] |
| 2004 | Neolinear | Analog & mixed-signal layout, circuit sizing | not disclosed | [123] |
| 2005 | Verisity | Verification automation, hardware acceleration | $315 million | [124] |
| 2006 | Praesagus | Manufacturing variation predication | $26 million | [125] |
| 2007 | Invarium | Lithography-modeling and pattern-synthesis | not disclosed | [126] |
| 2007 | Clear Shape | Design for Manufacturing | not disclosed | [127][128] |
| 2008 | Chip Estimate | IP portal, IP reuse management | not disclosed | [129] |
| 2010 | Denali Software | Memory models, design IP, verification IP | $315 million | [130] |
| 2011 | Altos Design Automation | Foundation IP characterization, such as memory, standard cell libraries | not disclosed | [22][131] |
| 2011 | Azuro | Clock concurrent optimization | not disclosed | [132] |
| 2012 | Sigrity | Signal, power & thermal integrity analysis, IC package design | $80 million | [133][91] |
| 2013 | Cosmic Circuits | Analog & mixed-signal IP for mobile device IP, such as USB, MIPI, audio & Wi-Fi cores | not disclosed | [23][134] |
| 2013 | Tensilica | Dataplane processing IP | $380 million | [24][135] |
| 2013 | Evatronix | Semiconductor IP: USB, MIPI, display, & storage interfaces | not disclosed | [136] |
| 2014 | Forte Design Systems | High-level synthesis | not disclosed | [25][137] |
| 2014 | Jasper Design Automation | Formal analysis & verification | $170 million | [138][139] |
| 2016 | Rocketick Technologies | Multi-core parallel simulator | not disclosed | [140] |
| 2017 | nusemi | High-speed Serializer/Deserializer (SerDes) communications IP | $182 million | [141] |
| 2019 | AWR Corporation | Wireless/high-frequency radio-frequency application design software | $160 million | [26] |
| 2020 | Integrand Software | Method of momentssolver technology for analysis & extraction for simulating large IC and packages, characterization, and analysis in 3D-IC systems | not disclosed | [142][143] |
| 2020 | InspectAR Augmented Interfaces | Maps electronics & labels circuit board schematics in real-time using augmented reality | not disclosed | [144][145] |
| 2021 | NUMECA | CFD, mesh generation, multi-physics simulation & optimization | not disclosed | [96] |
| 2021 | Pointwise | Computational fluid dynamics (CFD) mesh generation | not disclosed | [95] |
| 2022 | Future Facilities | CFD solution provider for electronics cooling and energy performance optimization solutions for data center design and operations | not disclosed | [146] |
| 2022 | OpenEye Scientific | Computational molecular modeling and simulation software used by pharmaceutical and biotechnology companies for drug discovery | $500 million | [5] |
| 2023 | Pulsic | Full custom IC floorplanning, placement, and routing tools | $59.9 million | [147] |
| 2023 | Rambus | Completion of acquisition of SerDes and memory interface PHY IP business from Rambus Inc. | not disclosed | [34] |
| 2023 | Intrinsix Corporation | Semiconductor design services provider | not disclosed | [148] |
| 2024 | Invecas Inc | Design engineering, embedded software and system-level solutions provider | not disclosed | [149] |
| 2024 | BETA CAE | Simulation and analysis software | $1.24 billion | [36] |
| 2025 | Secure-IC | Embedded security IP platform provider | not disclosed | [37] |
| 2025 | Arm's Artisan foundation IP business | Foundation IPs such as standard cell libraries, memory compilers, and GPIOs | not disclosed | [150] |
| 2025 | Hexagon AB's design and engineering business | CAE software suite (formerlyMSC Software) | $3.16 billion | [41][42] |
In July 2025, Cadence Design Systems agreed to plead guilty to criminal charges and pay over $140 million in combined penalties for illegally exporting semiconductor design technology to China'sNational University of Defense Technology (NUDT), a military university controlled byChina's Central Military Commission.[40] According to theU.S. Department of Justice andBureau of Industry and Security, Cadence's Chinese subsidiary knowingly sold Electronic Design Automation (EDA) hardware, software, and semiconductor design technology valued at over $45 million to NUDT between 2015 and 2021, despite the university being placed on the U.S. Entity List in February 2015 due to its use of American technology for supercomputers "believed to support nuclear explosive simulation and military simulation activities."[161][162]
The violations involved employees at Cadence's Chinese subsidiary using intermediary companies, including Central South CAD Center (CSCC) and later Phytium Technology, to disguise sales to the restricted military university.[163] Internal communications revealed that Cadence China employees were explicitly instructed to refer to NUDT only in Chinese characters and use "CSCC" in English correspondence because "the subject [was] too sensitive."[164] The Department of Justice noted that Cadence received only partial cooperation credit because the company "failed to voluntarily disclose the misconduct" and did not fully facilitate interviews of China-based employees, ultimately resulting in the company being placed on three years of corporate probation.[165]
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| National | |
| Other | |
