GOLDEN SUN SECURITIES·2026-01-23 09:52Investment Rating - The report gives an "Accumulate" rating for the semiconductor industry, indicating a positive outlook for investment opportunities in this sector [5]. Core Insights - The EDA (Electronic Design Automation) market is expected to grow significantly, with a projected global market size of $18.3 billion by 2026, reflecting its critical role in the semiconductor industry [2][15]. - The domestic EDA market in China is anticipated to grow at a faster rate than the global market, driven by the rapid development of the integrated circuit industry and emerging technologies such as 5G and AI [18]. - The EDA industry is characterized by high concentration, with the top three companies (Synopsys, Cadence, and Siemens EDA) holding a combined market share of 74% [21]. Summary by Sections EDA: The Foundation of Semiconductor Design and Manufacturing - EDA tools are essential for the design, simulation, and verification of integrated circuits, playing a crucial role in the entire chip development process [10][11]. - The global EDA market is entering a stable growth phase, with a compound annual growth rate (CAGR) of 11.1% from 2017 to 2024, and a projected market size of $15.71 billion in 2024 [15][18]. - The Chinese EDA market is expected to reach approximately 15.3 billion yuan in 2024, with a year-on-year growth of 16.8% [18]. Manufacturing EDA and Design EDA - Manufacturing EDA is a core component of the integrated circuit production process, covering all stages from process platform development to wafer production [3][33]. - The manufacturing EDA market is projected to grow from $3.315 billion in 2020 to $5.754 billion by 2026, with a CAGR of 9.63% [3]. - The report outlines six categories of manufacturing EDA tools, including process and device simulation tools, device modeling and verification tools, and yield management tools [35]. Domestic EDA Companies on the Rise - The report highlights the increasing restrictions on EDA tool exports from the U.S., which presents both challenges and opportunities for domestic EDA companies in China [4]. - The domestic EDA market is characterized by significant growth potential, driven by the need for self-sufficiency and the development of a robust industry ecosystem [4][18]. - The report emphasizes the importance of overcoming high-end core technology barriers and optimizing industry chain processes to enhance competitiveness [4].