The initial business model called for the firm to be a contract wafer production company; however, the venture backers wanted the company to produce integrated circuit design tools in order to assist in filling the foundry. In the field of electronic design automation, vlsi was a significant pioneer in the industry owing to the students it had at Caltech and the University of California, Berkeley. It was initially built on the “lambda-based” design paradigm that was espoused by carver mead and lynn conway, and it featured a complex bundle of tools. In the early 1980s, vlsi became an early provider of standard cell as well as cell-based technology to the merchant sector. At the same time, lsi logic, another business focusing on asics, was a pioneer in gate arrays. The technology had been largely accessible exclusively inside major vertically integrated firms with semiconductor operations, such as AT&T and IBM, prior to the introduction of the cell-based solution by vlsi. Not only did the design tools for vlsi ultimately include design entry and simulation, but they also eventually featured cell-based routing (chip compiler), a datapath compiler, sram and rom compilers, and a state machine compiler. The tools were not just point tools or system tools with a more broad function; rather, they were an integrated design solution for design of integrated circuits. A designer may update transistor-level polygons and/or logic schematics, then run drc and lvs, remove parasitics from the layout, and perform spice simulation. After that, the designer could back-annotate the timing or gate size modifications into the logic schematic database. In order to create framemaker data sheets for libraries, characterisation techniques were included. In the end, VLSI decided to separate the cad and library operations into compass design automation; nonetheless, the company was never able to reach the IPO stage before being acquired by Avanti Corporation. In addition to being essential to the company’s asic business, the physical design tools that vlsi used were also significant in establishing a benchmark for the commercial eda sector. Without the employment of a significant number of layout engineers, commercially available tools were unable to provide the level of productivity required to support the physical design of hundreds of asic designs each year during the time that vlsi and its primary asic competitor, lsi logic, were in the process of establishing the asic industry. “Make because there’s nothing to buy” was the reasoning choice that led to the creation of automated layout tools by the firms that were involved. In the late 1980s, when west godavari was introduced, the eda industry was finally able to catch up.