Electronic System Design Industry Posts $4 Billion in Revenue in Q2 2023, ESD Alliance Reports

MILPITAS, Calif. — October 16, 2023 — Electronic System Design (ESD) industry revenue increased 5.3% to $3,962.7 million in the second quarter of 2023 from $3,763.6 million in the second quarter of 2022, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average, which compares the most recent four quarters to the prior four, rose 9.5%.

“Growth in total electronic design automation (EDA) revenue in Q2 23 was limited by weak semiconductor IP revenue,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “However, total license and maintenance revenue, which includes all design tools, was strong at 16.1% overall with double-digit growth in all regions except Japan.”

The companies tracked in the EDMD report employed 59,160 people globally in Q2 2023, an 11.8% jump over the Q2 2022 headcount of 52,918 and up 2.5% compared to Q1 2023.

The quarterly EDMD report contains detailed revenue information with the following category and geographic breakdowns.

Revenue by Product and Application Category – Year-Over-Year Change

• Computer-Aided Engineering (CAE) revenue jumped 19.7% to $1,512.4 million. The four-quarter CAE moving average increased 17.6%.
• IC Physical Design and Verification revenue rose 14.2% to $689 million. The four-quarter moving average for the category increased 17.2%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 6.3% to $369 million. The four-quarter moving average for PCB and MCM rose 11.7%.
• Semiconductor Intellectual Property (SIP) revenue decreased 11.6% to $1,255 million. The four-quarter SIP moving average fell 1.6%.
• Services revenue increased 5.2% to $137.5 million. The four-quarter Services moving average rose 12.3%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $1,627.9 million of electronic system design products and services in Q2 2023, an 0.6% decline. The four-quarter moving average for the Americas rose 7.5%.
• Europe, Middle East, and Africa (EMEA) procured $509.4 million of electronic system design products and services in Q2 2023, a 7.8% increase. The four-quarter moving average for EMEA grew 8.2%.
• Japan’s procurement of electronic system design products and services decreased 4.3% to $241.6 million. The four-quarter moving average for Japan fell 0.3%.
• Asia Pacific (APAC) procured $1,583.9 million of electronic system design products and services in Q2 2023, a 13.1% increase. The four-quarter moving average for APAC grew 14.4%.

About the EDMD Report

The ESD Alliance Electronic Design Market Data (formerly the Market Statistics Service) report presents Electronic Design Automation (EDA), SIP and services industry revenue data quarterly. Both public and private companies contribute data to the report available from SEMI. Each quarterly report is published approximately three months after quarter close. EDMD report data is segmented as follows:

• Revenue by product category (CAE, IC Physical Design and Verification, Semiconductor IP, PCB/MCM Layout, and Services) including numerous detailed sub-categories
• Revenue by geographic region (Americas, EMEA, Japan and APAC)
  Total employment at participating companies

For information about SEMI market research reports, visit the SEMI Market Research Reports and Databases Catalog.

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 3,000 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), the MEMS & Sensors Industry Group (MSIG) and SOI Consortium are SEMI Strategic Technology Communities. Visit www.semi.org to learn more.