Accenture buys chip designer amid global shortage.
Global technology and consulting giant Accenture has reached an agreement to acquire Ottawa-based semiconductor engineering services company XtremeEDA for an undisclosed amount.
Founded in 2002 by Claude Cloutier, XtremeEDA offers design and functional verification services to the computer chip industry. The company’s expertise spans a variety of industries, including processors, telecommunications, aviation, medical, consumer electronics and others. In addition to XtremeEDA’s headquarters in Ottawa, XtremeEDA also has a location in Austin, Texas.
Once the acquisition is complete, XtremeEDA intends to transfer its team of 40 engineers who serve clients across North America to Accenture. Since its inception, XtremeEDA has worked with companies such as Siemens, Codasip, Cadence, ASIC North and Avery Design Systems.
The integration of XtremeEDA into Accenture Canada is expected to strengthen the latter’s edge computing and silicon design capabilities. Accenture noted that the consolidation will help its clients improve how they manage and use physical assets by creating new interactive human experiences.
“XtremeEDA will help us scale what is already one of the most comprehensive edge capabilities in the world, creating new experiences at the digital core,” said Jeffrey Russell, president of Accenture in Canada.
XtremeEDA is the latest Canadian company to be acquired by Accenture, joining Gevity, Cloudworks, Avenai, PCO Innovation, Callisto Integration and the financial services assets of Zafin.
Accenture’s move to tap into the semiconductor engineering space is notable given that the industry is experiencing a global chip shortage. A survey of electronics makers found nearly 60% of companies expect the microchip deficit to last until the second half of this year or beyond.
RELATED: VentureLab Secures $2.5M Provincial Funding to Expand Semiconductor Incubator
To help address the strain in the semiconductor supply chain, the federal government earlier this year announced plans to invest a total of $240 million to help build design and production of semiconductors and photonics in the country. The $240 million includes $150 million for the Semiconductor Challenge Callout Fund for targeted investments in semiconductor development and manufacturing, as well as a $90 million investment for the Canadian Photonics Fabrication Center in Ottawa. .
In April, VentureLab, a Markham-based technology hub, received an investment of C$2.5 million from the Government of Ontario to establish a medical technology component within its Hardware Catalyst Initiative (HCI), a lab and an incubator for hardware and semiconductor companies.
Featured image by Umberto via Unsplash.