Electronic System Design Industry Reports Revenue of $3.8 Billion in Q3 2022, ESD Alliance Reports

MILPITAS, Calif. — January 23, 2023 — Electronic System Design (ESD) industry revenue increased 8.9% from $3,458.2 million in Q3 2021 to $3,767.4 million in Q3 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 13.4%.

“The electronic design automation (EDA) industry posted overall gains in Q3 2022, with double-digit increases in all product categories except Semiconductor IP,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “All geographic regions except Japan recorded growth in the quarter, with Asia Pacific reporting a double-digit increase.”

The companies tracked in the EDMD report employed 55,369 people globally in Q3 2022, an 8.2% increase over the Q3 2021 headcount of 51,182 and up 1.8% compared to Q2 2022.

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 increased 16.7% to $1,231.2 million. The four-quarter CAE moving average increased 14.8%.
• IC Physical Design and Verification revenue increased 12.2% to $687.4 million. The four-quarter moving average for the category increased 3.4%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 15.6% to $344.7 million. The four-quarter moving average for PCB and MCM rose 13.2%.
• Semiconductor Intellectual Property (SIP) revenue decreased 1.0% to $1,360.2 million. The four-quarter SIP moving average grew 16.5%.
• Services revenue increased 20.8% to $144 million. The four-quarter Services moving average increased 26.8%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $1,622.1 million of electronic system design products and services in Q3 2022, an 8.5% increase. The four-quarter moving average for the Americas rose 16.8%.
• Europe, Middle East, and Africa (EMEA) procured $451 million of electronic system design products and services in Q3 2022, a 0.2% increase. The four-quarter moving average for EMEA grew 3.8%.
• Japan’s procurement of electronic system design products and services decreased 8.5% to $237.8 million. The four-quarter moving average for Japan declined 0.8%.
• Asia Pacific (APAC) procured $1,456.4 million of electronic system design products and services in Q3 2022, a 16.3% increase. The four-quarter moving average for APAC increased 16.2%.

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 2,500 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.