<SUBMISSION>
<ACCESSION-NUMBER>0000950134-04-009065
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20040621
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CADENCE DESIGN SYSTEMS INC
<CIK>0000813672
<ASSIGNED-SIC>7372
<IRS-NUMBER>770148231
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0102
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>333-110346
<FILM-NUMBER>04872901
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2655 SEELY ROAD BLDG 5
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134
<PHONE>4089431234
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>555 RIVER OAKS PARKWAY
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ECAD INC /DE/
<DATE-CHANGED>19880609
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>f99792b3e424b3.htm
<DESCRIPTION>424B3
<TEXT>
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<TITLE>e424b3</TITLE>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>Filed under Rule&nbsp;424(b)(3) of the Securities Act of 1933,<BR>
relating to Registration No.&nbsp;333-110346</B>



<P align="center" style="font-size: 10pt"><B>Prospectus Supplement No.&nbsp;3<BR>
to Prospectus Dated April&nbsp;29, 2004<BR>
of</B>



<P align="center" style="font-size: 14pt"><B>CADENCE DESIGN SYSTEMS, INC.</B>



<P align="center" style="font-size: 10pt"><B>Relating to</B>



<P align="center" style="font-size: 10pt"><B>$420,000,000 Zero Coupon Zero Yield Senior Convertible Notes due 2023<BR>
and<BR>
Shares of Common Stock Issuable upon Conversion of the Notes</B>



<P>
<HR noshade width="26%" align="center" size="1">
<P>




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement no. 3 relates to the resale by selling
securityholders of Cadence Design Systems, Inc.&#146;s Zero Coupon Zero Yield Senior
Convertible Notes Due 2023 and the shares of Cadence common stock issuable upon
conversion of the notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read this prospectus supplement no. 3 in conjunction with the
prospectus dated April&nbsp;29, 2004, which should be delivered in conjunction with
this prospectus supplement. This prospectus supplement is not complete without,
and may not be delivered or used except in conjunction with, the prospectus,
including any amendments or supplements to it. This prospectus supplement is
qualified by reference to the prospectus, except to the extent that the
information provided by this prospectus supplement supercedes information
contained in the prospectus.


<P>
<HR noshade width="26%" align="center" size="1">
<P>




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in the notes and the common stock issuable upon conversion of
the notes involves risk. See the discussion entitled &#147;Risk Factors&#148; beginning
on page 6 of the prospectus dated April&nbsp;29, 2004.</B>


<P>
<HR noshade width="26%" align="center" size="1">
<P>




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of this prospectus supplement or the prospectus dated
April&nbsp;29, 2004. Any representation to the contrary is a criminal offense.</B>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="100%">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table under the caption &#147;Selling Securityholders&#148; beginning on page 51
of the prospectus is hereby supplemented and amended by adding to it the
selling securityholder identified in the table below. We prepared this table
based on information supplied to us by the selling securityholder named in the
table below on or prior to June&nbsp;21, 2004. Information about the selling
securityholder may change over time. If required, any changed or new
information given to us will be set forth in supplements to the prospectus or
amendments to the registration statement of which this prospectus is a part, if
and when necessary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have assumed for purposes of the table below that the selling
securityholder will sell all of the notes and all of the common stock issuable
upon conversion of the notes pursuant to this prospectus supplement and the
prospectus, and that any other shares of our common stock beneficially owned by
the selling securityholder will continue to be beneficially owned.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth below, the selling securityholder does not have, and
within the past three years has not had, any position, office or other material
relationship with us or any of our predecessors or affiliates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling securityholder identified below may have sold, transferred or
otherwise disposed of, pursuant to transactions exempt from the registration
requirements of the Securities Act of 1933, as amended, all or a portion of its
notes since the date on which it provided the information regarding its notes.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Natural</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Person(s)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>with Voting</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Selling</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Beneficially</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned after the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Investment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Securityholder</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned and Offered</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned(1)(2)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offered (1)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering(2)(3)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Power</B><HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">The Animi Master
Fund, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">319,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">319,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">* Less than one percent (1%).


<P align="left" style="font-size: 10pt">(1)&nbsp;Assumes conversion of all of the holder&#146;s notes at a conversion rate of
63.8790 shares of common stock per $1,000 principal amount at maturity of the
notes. This conversion rate is subject to adjustment as described under
''Description of Notes&#151;Conversion Rights&#146;&#146; in the prospectus dated April&nbsp;29,
2004. As a result, the number of shares of common stock issuable upon
conversion of the notes may increase or decrease in the future. Excludes shares
of common stock that may be issued by us upon the repurchase of the notes as
described under ''Description of Notes&#151; Repurchase of the Notes by Us at the
Option of Holders Upon a Fundamental Change&#146;&#146; in the prospectus and fractional
shares. Holders will receive a cash adjustment for any fractional share amount
resulting from conversion of the notes, as described under ''Description of
Notes&#151;Conversion Rights&#146;&#146; in the prospectus.


<P align="left" style="font-size: 10pt">(2)&nbsp;The number of shares of common stock beneficially owned by the holder named
above is less than 1% of our outstanding common stock, calculated based on
273,356,132 shares of common stock outstanding as of April&nbsp;3, 2004. In
calculating this amount for this holder, we treated as outstanding the number
of shares of common stock issuable upon conversion of all of such holder&#146;s
notes, but we did not assume conversion of any other holder&#146;s notes.


<P align="left" style="font-size: 10pt">(3)&nbsp;For the purposes of computing the number and percentage of notes and shares
to be held by the selling securityholder after the conclusion of the offering,
we have assumed for purposes of the table above that the selling securityholder
named above will sell all of the notes and all of the common stock issuable
upon conversion of the notes offered by this prospectus supplement and the
prospectus, and that any other shares of our common stock beneficially owned by
the selling securityholder will continue to be beneficially owned.


<P align="left" style="font-size: 10pt">(4)&nbsp;Archeus Capital
Management, LLC is the Investment Manager for The Animi Master Fund,
Ltd. Accordingly, Archeus Capital
Management, LLC has voting and dispositive power of the securities
held by The Animi Master Fund, Ltd. Peter Hirsch is a Managing Member
of Archeus Capital Management, LLC and its Chief Investment Officer
on behalf of The Animi Master Fund, Ltd.



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="100%">



<P>
<HR noshade width="26%" align="center" size="1">
<P>



<P align="left" style="font-size: 10pt">The date of this prospectus
supplement is June&nbsp;21, 2004.




<P align="center" style="font-size: 10pt">2
</DIV>


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</SUBMISSION>
