1999-05-18 , ESC-9969
Business News From Philips Semiconductors

Further development of long-term partnership endorses leadership position of Cadence

Cadence Design Systems Inc. (NYSE: CDN) and Philips Semiconductors today announced a US $35 million deal, which continues the Cadence role as Philips Semiconductors' primary supplier of electronic design automation (EDA) tools. The two-year agreement, which extends the companies' existing relationship, encompasses the broad spectrum of Cadence technology offerings. Among the new products included in the deal is the Envisia Ambit synthesis tool, a signoff-quality, fast, full-chip timing engine that enables high-capacity and high-performance chip-level synthesis.

Philips Semiconductors will use design tools from Cadence to maintain its leadership position as a supplier of integrated circuits (ICs) for applications in consumer, telecommunication, multimedia, and automotive electronics. The company has a significant market position with chipsets for TV, audio, wired and wireless telephony, computer monitors, desk-top video, and PC peripherals, and is a world leader in one-chip TV products.

Philips Semiconductors will use Cadence tools to meet the challenges of deep sub-micron design. It currently uses a 0.25µm manufacturing process for mainstream production and is making the transition to 0.18µm in the next 12 to 18 months.

"After reviewing current market offerings, Philips Semiconductors is convinced that Cadence remains the best-in-breed partner for EDA. The company's ongoing investment in its tools -- in terms of both research and development, and acquisition -- makes Cadence a natural partner to aide Philips Semiconductors in continuing to provide customers with the world's most advanced capabilities," said Lambert van den Hoven, manager design technology, Philips Semiconductors.

"This deal reinforces our leadership position within the EDA market. The extension of our valuable relationship with Philips Semiconductors demonstrates Cadence's ability to maintain a competitive edge and provides a significant endorsement for our recently introduced technology," said Kevin Bushby, vice president and general manager, Cadence Europe.

Cadence is the largest supplier of software products, consulting services, and design services used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products. With more than 4,000 employees and 1998 annual sales of $1.2 billion, Cadence has sales offices, design centers, and research facilities around the world. The Company is headquartered in San Jose, Calif. And traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services may be obtained from the World Wide Web at  http://www.cadence.com.

Philips Semiconductors, a division of Royal Philips Electronics, headquartered in Eindhoven, The Netherlands, is the eighth largest semiconductor supplier in the world. Philips Semiconductors' innovations in digital audio, video, and mobile technology position the company as a leader in the consumer, multimedia, and wireless communications markets. Sales offices are located in all major markets around the world and are supported by systems labs. Additional information on Philips Semiconductors can be obtained by accessing its home page at http://www.semiconductors.philips.com