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

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

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

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

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

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

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

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

9. SAa, Jan 2006, Integrated Systems Design - Company Confidential 9 Business Pressures Continue Market Developments …… result in much lower Margins Year Margin % 200420052006 2007 2008 Digitalization of Products Entrance of C-brands and new Competitors with different Business Models Shortened Life Cycles Price Erosion Margin Deterioration

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

11. 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

12. 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

13. 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.

14. SAa, Jan 2006, Integrated Systems Design - Company Confidential 14 Challenges Faced By Large Global Companies n 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) n Need to efficiently create, control and provide access to intellectual property on a global scale — Design data — Library data — Design constraints, rules, information n Provide seamless communication between OEM and “outsourcees” — Electronic manufacturing suppliers (EMS) — ODMs and third parties performing all of part of design process n Protection and control of IP

15. 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!

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

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

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

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

20. 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

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

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

23. SAa, Jan 2006, Integrated Systems Design - Company Confidential 23 Intellectual Property n What constitutes IP? — Design data — Re-useable blocks — Library parts data — Design constraint rules and design intent information n 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 n BOMs, parts availability and manufacturability

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

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

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

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

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

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

30. SAa, Jan 2006, Integrated Systems Design - Company Confidential 30 The Need for Speed Exponentially increasing clock speedsExponentially decreasing timing margins Faster rise times; signal integrity issues The SERDES Design Trend Timing Budget (ns) Clock Speed (MHz) 020406080100 10 30 100 300 Clk to QSetup/HoldTrace DelayMargin 151051 80s90s00s ISA 8.33 MHz PCI UP TO 66 MHz VESA VL EISA MCA Optical Interconnects Signaling Rate (Gbps) Signaling Rate (Gbps) PCI-X HyperTransport PL4 RapidIO AGPx SATA InfiniBand 1Gbps Parallel Bus Limit ? >12 Gbps Copper Signaling Limits PCI Express Fibre Channel Serial RIO GbE 10 GbE

31. SAa, Jan 2006, Integrated Systems Design - Company Confidential 31 Multi-Gigabit Design Issues n 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 20 inches Lossless 30 inches 40 inches

32. SAa, Jan 2006, Integrated Systems Design - Company Confidential 32 n High-end FPGAs are now commonplace on most PCB designs n 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 n Mentor has addressed these challenges with our Integrated Systems Design (ISD) solutions and Partnerships with leading FPGA suppliers Integrated Systems Design

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

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

35. SAa, Jan 2006, Integrated Systems Design - Company Confidential 35