Group 1 - The EDA industry has a high frequency of mergers and acquisitions, with the three major global players (Synopsys, Cadence, and Siemens EDA) participating in over 200 deals [1] - Major EDA companies are acquiring niche tool firms to strengthen their market positions, akin to building a "Lego" structure [1] - There is a trend of EDA tool companies being acquired by non-EDA firms, exemplified by Renesas Electronics' acquisition of Altium for approximately $5.9 billion to enhance system design efficiency [2] Group 2 - Domestic EDA companies in China are fragmented and currently lack the competitive strength to challenge the three major international players [2] - Heda JiuTian, a leading domestic EDA firm, attempted to acquire Chip and Semiconductor but the deal was terminated due to disagreements on core terms, highlighting the challenges in domestic consolidation [2] - The entire domestic EDA ecosystem requires further integration, with successful mergers dependent on factors such as technical capabilities, industry complementarity, and regional considerations [3]