Jerusalem Venture Partners (JVP) and the Israeli subsidiary of Cadence Design Systems Inc. (Nasdaq:CDNS) today announced the establishment of a joint program to support young Israeli fabless semiconductor companies. The goal of the venture is to cut costs and risks involved in the investment in early-stage semiconductor companies, speed up time-to-market, and increase companies’ value. JVP and Cadence are now examining candidates for initial investment during 2006 under the program.
JVP and Cadence officially announced the program following their successful launch by two Israeli companies they assisted: Altair Semiconductor Ltd. and Siano Mobile Silicon Ltd. JVP invested in both companies, while Cadence supplied automated design solutions and services for the two companies’ processors.

Companies JVP will support under the joint program will benefit from the partnership environment of Cadence. JVP partner Adam Fisher said today, “The establishment of a semiconductor company requires heavy capital investment in tools and IP providers, as well as in fabs. This capital is paid before the company and venture capital funds are convinced that the technology will work, that there’s a market, and customers will want the product. This partnership increases the likelihood for initial successful design, thereby reducing the risk, while raising companies’ value.”

Cadence EMEA director for business development Erez Tsur added, “Innovation is the heart of the electronics industry. New companies with new ideas need financing, and an effective way of turning ideas into products. Cadence’s products and services make the difference for early-stage companies. Cadence recruits all its partners for this collaboration, including leading semiconductor companies and IP providers, which will speed up time to market and reduce development costs of the first processor. We’re pleased to support, through this program, the rapid and successful establishment of new companies in the field.”

The program’s starting point was identifying the need for the venture capital and electronic design automation (EDA) industries to rely on partnerships with third parties to found start-ups that will succeed in a market with a steadily narrowing window of opportunity, and which involves coping with ever increasing costs.

Cadence is an international software company that develops design tools, methodologies and services for certifying the design of consumer electronic products, communications equipment and processors for the semiconductor industry.

Cadence operates in Israel at two levels. It has a development center at the Afek industrial park in Rosh Ha’Ayin (formerly Verisity), and a sales and marketing office in Herzliya Pituah. Cadence had $1.3 billion revenue in 2005.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2006