ESD Alliance Reports Strong Electronic Design Automation Industry Revenue Growth for Q3 2020

Industry Reports 15% Revenue Growth Overall; Semiconductor IP and Asia Pacific Surpass $1B

MILPITAS, Calif. — January 11, 2021 — Electronic Design Automation (EDA) industry revenue increased 15% in Q3 2020 to $2,953.9 million, compared to $2,567.7 million in Q3 2019, with all categories logging significant gains, the Electronic System Design (ESD) Alliance Market Statistics Service (MSS) announced today. The four-quarter moving average, which compares the most recent four quarters to the prior four quarters, rose by 8.3%. The ESD Alliance is a SEMI Technology Community.

The companies tracked in the MSS report employed 47,087 people in Q3 2020, a 4.8% increase over the Q3 2019 headcount of 44,950 and up 1.1% compared to Q2 2020.“The EDA industry reported a substantial double-digit year-over-year revenue increase for Q3 2020,” said Walden C. Rhines, Executive Sponsor, SEMI EDA Market Statistics Service. “All product categories and geographic regions reported increases in Q3. The Computer Aided Engineering (CAE), Semiconductor IP (SIP), and Services categories and, regionally, the Americas, Europe, Middle East and Africa, and Asia Pacific reported double-digit growth. Further, the Semiconductor IP category and the Asia Pacific region both surpassed $1 billion in quarterly revenue.”

The quarterly MSS report containing detailed revenue information with category and geographic breakdowns is available to ESD Alliance members.

Revenue by Product Category in Q3 2020

• CAE revenue increased 10.7% to $927.6 million compared to Q3 2019. The four-quarter CAE moving average increased 7.2%.
• IC Physical Design and Verification revenue increased 9.1% to $608.2 million compared to Q3 2019. The four-quarter moving average for the category rose 3.2%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 8.3% to $260.4 million compared to Q3 2019. The four-quarter moving average for PCB and MCM increased 9.8%.
• SIP revenue increased 25.8% to $1,051.7 million compared to Q3 2019. The four-quarter SIP moving average grew 13.9%.
• Services revenue increased 11% to $105.9 million compared to Q3 2019. The four-quarter Services moving average decreased 6.7%.

Revenue by Region in Q3 2020

• The Americas, the largest reporting region by revenue, purchased $1,307.2 million of EDA products and services in Q3 2020, an 11.7% increase compared to Q3 2019. The four-quarter moving average for the Americas increased 5.1%.
• Europe, the Middle East, and Africa (EMEA) revenue increased 4.9%, to $368.3 million compared to Q3 2019. The four-quarter moving average for EMEA grew 13.4%.
• Japan revenue increased 6% to $232.4 million compared to Q3 2019. The four-quarter moving average for Japan rose 4.7%.
• Asia Pacific (APAC) revenue increased 26.4% to $1,046 million compared to Q3 2019. The four-quarter moving average for APAC increased 11.3%.

About the MSS Report

The ESD Alliance Market Statistics Service reports EDA, IP and services industry revenue data quarterly and is available to Alliance members. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows:

• Revenue type (product licenses and maintenance, services, and SIP)
• Application (CAE, PCB/MCM Layout, and IC Physical Design & Verification)
• Region (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific)

In addition, the report provides many subcategories of detail and lists total employment of the tracked companies.

About the Electronic System Design Alliance

The Electronic System Design (ESD) Alliance, a SEMI Technology Community, is the central voice to communicate and promote the value of the semiconductor design ecosystem as a vital component of the global electronics industry. As an international association of companies providing goods and services throughout the semiconductor design ecosystem, it is a forum to address technical, marketing, economic and legislative issues affecting the entire industry. For more information about the ESD Alliance, visit http://esd-alliance.org.

About SEMI

SEMI^® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Association Partners, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more