Summary
The exclusive agreement between Teradyne and Teseda to produce Scan Workbench provides Teradyne a competing product to Verigy's Inovys line, without the messy acquisition. Teseda gets a world-class distribution network for its product, and targets the most popular installed base for SOC testers.
Analysis
Improving the productivity of test has to start at the link between design and test, particularly at the point of post-silicon debug. Teseda has developed strong, platform-independent tools but has lacked the critical mass to move them into the marktplace. Teradyne has focused on production test, and this new relationship with Teseda provides a missing link for them. Verigy made a similar move with their purchase of Inovys in 2008, but Teradyne can now produce an equivalent product without the merger difficulties and expense of an acquisition.
Teseda can now target the most popular SOC test product with their tools. Since the only other major competitor in this space is Verigy, and they are marketing their own tools from Inovys, Tesade loses nothing with an exclusive agreement. A win-win for both companies.
Neil Kelly consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
