Integrated Systems Design Trends, Challenges and Solutions Global Workflow 2006 Seminar

1. Integrated Systems DesignTrends, Challenges and SolutionsGlobal Workflow 2006 Seminar Sami Aarras Team Leader, PWB Design Tools Mentor Graphics Finland

2. Mentor Graphics • Revenue - over $700 million in 2004 • Market Share ~19% of worldwide EDA market • Third ranking in EDA industry • Focused on growth through internal development Source: EDAC Market Statistics SAa, Jan 2006, Integrated Systems Design - Company Confidential

3. Mentor Graphics Around the World Operates through 28 engineering sites and 48 sales offices around the world Key Sales Offices R&D Sites SAa, Jan 2006, Integrated Systems Design - Company Confidential

4. Mentor’s SystemsDesign Organization Delivers TOTAL flow solutions for Integrated Systems Design (ISD) Design content Design intent Analysis Verification FPGA Synthesis Manufacturing outputs Data management Harness Systems Worldwide PCB market share leader* 400+ employees *Source: Dataquest June 2004 SAa, Jan 2006, Integrated Systems Design - Company Confidential

5. Mentor’s Integrated Systems Design Focus Package Integration Connectivity Corporate Infrastructure Systems SAa, Jan 2006, Integrated Systems Design - Company Confidential

6. Integrated Systems Design Flow SAa, Jan 2006, Integrated Systems Design - Company Confidential

7. Drive to reduce design cycle time and time-to-market Use of latest IC and PCB technology to compete Form factor Performance Leverage resources of a global enterprise Reduce product costs and increase margins Reliability and quality The Electronics Industry Faces Many Challenges SAa, Jan 2006, Integrated Systems Design - Company Confidential

8. Systems Design Complexity on the Rise SAa, Jan 2006, Integrated Systems Design - Company Confidential

9. Market Developments … … result in much lower Margins Digitalization of Products Entrance of C-brands and new Competitors with different Business Models Shortened Life Cycles Price Erosion Margin Deterioration Margin % Year 2008 2004 2005 2006 2007 Business Pressures Continue SAa, Jan 2006, Integrated Systems Design - Company Confidential

10. Design Cycle Time-to-Market is Critical, but,… SAa, Jan 2006, Integrated Systems Design - Company Confidential

11. Design Cycle .. Increasing Systems Design Complexity Lengthens Design Cycle Time • Design Complexities • More high-complexity FPGAs on board • Higher speed interconnects & system performance • Higher pin-count FPGA & IC packages • Consumer product use of flex & rigid-flex • HDI/Microvia layer fabrication • Embedded components • Industry globalization • Outsourcing SAa, Jan 2006, Integrated Systems Design - Company Confidential

12. Design Cycle Continued Investment is Required to Counteract Complexities • Mentor’s Investment • in Integrated Systems Design • Reduced design cycle • Use of advanced technologies • Support for Global companies SAa, Jan 2006, Integrated Systems Design - Company Confidential

13. Electronics Industry Has Gone Global Global companies have design teams, manufacturing and outsource in locations worldwide. SAa, Jan 2006, Integrated Systems Design - Company Confidential

14. Challenges Faced By Large Global Companies • Leveraging design teams located locally or globally dispersed • Need to have the design “follow-the-sun” to cut design cycle time • Expertise may exist in several locations (RF, digital, analog) • Need to efficiently create, control and provide access to intellectual property on a global scale • Design data • Library data • Design constraints, rules, information • Provide seamless communication between OEM and “outsourcees” • Electronic manufacturing suppliers (EMS) • ODMs and third parties performing all of part of design process • Protection and control of IP SAa, Jan 2006, Integrated Systems Design - Company Confidential

15. Global Design Teams Local or globally dispersed design teams must be able to work on the same design at the same time. Goal: Reduce design cycle time! SAa, Jan 2006, Integrated Systems Design - Company Confidential

16. Support for Global Design Teams…On Large, Complex Designs Solution: Simultaneous layout by multiple designers SAa, Jan 2006, Integrated Systems Design - Company Confidential

17. Support for Global Design Teams…On Mixed Technology Designs Solution: Simultaneous layout by technical specialists SAa, Jan 2006, Integrated Systems Design - Company Confidential

18. Multiple designers The same design The same application At the same time LAN or WAN enabled Edits automatically synchronized in real time Changes checked, merged, broadcasted For all PCB layout tasks Placement, routing, verification, drafting, manufacturing prep Value Significant reduction in layout design cycle time Enable globally dispersed design teams and specialists to work simultaneously on the same design XtremePCB Design Designer SAa, Jan 2006, Integrated Systems Design - Company Confidential

19. Outsourcing Design Many global companies outsource a part of their design to 3rd party design houses or ODMs. Goal: capitalize on outsourced expertise. SAa, Jan 2006, Integrated Systems Design - Company Confidential

20. Adding to the Complexity!“55% of Companies Outsource All or Part of their Board Designs” Source: EEtimes Research Report, January 2005 SAa, Jan 2006, Integrated Systems Design - Company Confidential

21. Innovation in Global Team Design • TeamPCB ™ • Divide design into sections • Layout sections in parallel • Share progress with other designers • Merge sections back into master design • Totally automated & error free Digital Designer Digital Designer Analog Designer Master Split & Join Designer-to-designer updates RF Designer SAa, Jan 2006, Integrated Systems Design - Company Confidential

22. Managing Intellectual Property is a Challenge SAa, Jan 2006, Integrated Systems Design - Company Confidential

23. Intellectual Property • What constitutes IP? • Design data • Re-useable blocks • Library parts data • Design constraint rules and design intent information • What are the challenges? • Efficient access and download of supply chain info. • Searching and choosing the right component • Capture, access and control of constraint rules and intent • Bi-directional communication between design and manufacturing • BOMs, parts availability and manufacturability SAa, Jan 2006, Integrated Systems Design - Company Confidential

24. Example - Choosing the Right ComponentSimple Decision, Global Consequences SAa, Jan 2006, Integrated Systems Design - Company Confidential

25. Product Costs Committed Early SAa, Jan 2006, Integrated Systems Design - Company Confidential

26. Choosing the Wrong Component Can be a Disaster • Cost • E.g., consumer product designer picks very expensive part • Not discovered until purchase requisition issued • Either redesign or non-competitive price product • Availability • E.g., designer chooses “perfect” part • Manufacturer gets BOM and can not get part in volume • Either redesign or lag in volume production • Manufacturability • E.g., designer chooses good part for design • However, part requires specialized manufacturing • Either redesign or increase in manufacturing costs ? SAa, Jan 2006, Integrated Systems Design - Company Confidential

27. DMS • Library • Component Information • BoM & Design Data • Management • PLM & ERP • Business & Manufacturing • Operations Management EDA Tool Integration Required with Corporate PLM Systems and the Industry Supply Chain Enterprise Integration EDA Tools SAa, Jan 2006, Integrated Systems Design - Company Confidential

28. EDA Tool to Corp. Infrastructure IntegrationDMS Reduces Design Time & Product Cost • Complete part information available • Cost • Availability • Value • Characteristics • The right choice early in the process • Design/part Information • Availability • Cost • Manufacturability Component Data BOMs Designer SAa, Jan 2006, Integrated Systems Design - Company Confidential

29. Technology ChallengesThe Ripple Effect of Advancing Technology • MHZ and GHz speeds • 1500 to 3000 pins/package • More FPGAs on PCB • Electro-magnetic interference Advances in IC/FPGA • HDI/Microvia • Embedded Components • MCM • Lead-free • High-speed Materials • Optical Advances in PCB Fabrication Advances in EDA Tools SAa, Jan 2006, Integrated Systems Design - Company Confidential

30. VESA VL EISA MCA The Need for Speed Clk to Q Setup/Hold Trace Delay Margin Timing Budget (ns) 300 100 Clock Speed (MHz) 30 10 0 20 40 60 80 100 Exponentially increasing clock speeds Exponentially decreasing timing margins The SERDES Design Trend Faster rise times; signal integrity issues Optical Interconnects 15 10 5 1 >12 Gbps Copper Signaling Limits 10 GbE InfiniBand ? SerialRIO FibreChannel PCIExpress SATA GbE 1Gbps Parallel Bus Limit Signaling Rate (Gbps) HyperTransport PL4 PCI-X PCI AGPx UP TO 66 MHz RapidIO 8.33 MHz ISA 80s 90s 00s SAa, Jan 2006, Integrated Systems Design - Company Confidential

31. Multi-Gigabit Design Issues • Require a whole new analysis and verification approach, including analysis of ... • Loss and rise-time degradation • Jitter • Crosstalk • Complex via effects • Pre-emphasis/Equalization • Differential path matching Lossless 20 inches 40 inches 30 inches SAa, Jan 2006, Integrated Systems Design - Company Confidential

32. Integrated Systems Design • High-end FPGAs are now commonplace on most PCB designs • Implementing these on a PCB presents many challenges: • Timing closure on both the FPGA and PCB • System performance optimization • Reduction of design cycle time – concurrent design • Reduction of PCB layout time and manufacturing costs • Use of advanced high speed (classic and SERDES) • Use of advanced PCB fabrication technologies • Mentor has addressed these challenges with our Integrated Systems Design (ISD) solutions and Partnerships with leading FPGA suppliers SAa, Jan 2006, Integrated Systems Design - Company Confidential

33. Expedition™ Enterprise Flow SAa, Jan 2006, Integrated Systems Design - Company Confidential

34. Challenges of product design within a global enterprise Design team collaboration Intellectual property management Corporate enterprise integration Integrated system design Government regulation compliance Expedition EnterpriseAddressing the Challenges of the Global Enterprise • Expedition Enterprise enables design teams to leverage the power of their enterprise environment to reduce product cost and design cycle times SAa, Jan 2006, Integrated Systems Design - Company Confidential

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