Electronics Systems Design industry posts record revenue in Q3: ESD Alliance

MILPITAS — Electronic System Design (ESD) industry revenue increased 25.2% to $4,702.4 million in the third quarter of 2023 from the $3,756.3 million logged in the third quarter of 2022, the ESD Alliance, a SEMI Technology Community, announced 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 13.8%.

“Electronic design automation (EDA) reported record revenue growth in Q3 23,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “This was the highest overall growth since Q4 1998. The Computer-Aided Engineering, IC Physical Design and Verification, Printed Circuit Board and Multi-Chip Module, and Semiconductor Intellectual Property categories reported double-digit growth. Further, all geographic regions reported substantial growth.”

The companies tracked in the EDMD report employed 59,737 people globally in Q3 2023, a 10.6% jump over the Q3 2022 headcount of 53,034 and up 1% compared to Q2 2023.

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

• Computer-Aided Engineering (CAE) revenue increased 22.4% to $1,657.5 million. The four-quarter CAE moving average increased 16.7%.
• IC Physical Design and Verification revenue surged 45.3% to $904.5 million. The four-quarter moving average for the category increased 29%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 23.6% to $426.1 million. The four-quarter moving average for PCB and MCM rose 14%.
• Semiconductor Intellectual Property (SIP) revenue increased 22.1% to $1,575.9 million. The four-quarter SIP moving average rose 5.3%.
• Services revenue slipped 3.9% to $138.3 million. The four-quarter Services moving average rose 6%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $1,984.1 million of electronic system design products and services in Q3 2023, a 22.8% jump. The four-quarter moving average for the Americas rose 11.2%.
• Europe, Middle East, and Africa (EMEA) procured $551.1 million of electronic system design products and services in Q3 2023, a 21.5% increase. The four-quarter moving average for EMEA grew 13.4%.
• Japan’s procurement of electronic system design products and services increased 30.5% to $309.3 million. The four-quarter moving average for Japan increased 9.4%.
• Asia Pacific (APAC) procured $1,858 million of electronic system design products and services in Q3 2023, a 28.1% increase. The four-quarter moving average for APAC grew 17.8%.