Electronic System Design Industry Posts $4.4 Billion in Revenue in Q4 2023, ESD Alliance Reports

MILPITAS, Calif. — April 9, 2024 — Electronic System Design (ESD) industry revenue increased 14% to $4,423 million in the fourth quarter of 2023 from the $3,879.9 million logged in the third quarter of 2023, 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 14.1%.

“Electronic design automation (EDA) continued to report strong revenue growth in Q4 2023,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “The Computer-Aided Engineering, Printed Circuit Board and Multi-Chip Module, Semiconductor Intellectual Property, and Services categories reported double-digit growth. Further, all geographic regions reported substantial growth.”

The companies tracked in the EDMD report employed 60,106 people globally in Q4 2023, an 8.9% jump over the Q4 2022 headcount of 55,192 and up 0.6% compared to Q3 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 increased 19.5% to $1,512.1 million. The four-quarter CAE moving average increased 19.3%.
• IC Physical Design and Verification revenue declined 1% to $691.5 million. The four-quarter moving average for the category increased 20%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 21% to $410.8 million. The four-quarter moving average for PCB and MCM rose 18.9%.
• Semiconductor Intellectual Property (SIP) revenue increased 13.7% to $1,632.4 million. The four-quarter SIP moving average rose 5.9%.
• Services revenue jumped 25.4% to $176.2 million. The four-quarter Services moving average rose 10.8%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $1,921 million of electronic system design products and services in Q4 2023, an 11.9% increase. The four-quarter moving average for the Americas rose 11.6%.
• Europe, Middle East, and Africa (EMEA) procured $608.2 million of electronic system design products and services in Q4 2023, a 20.5% increase. The four-quarter moving average for EMEA grew 17.8%.
• Japan’s procurement of electronic system design products and services grew 8.3% to $262 million. The four-quarter moving average for Japan increased 9.4%.
• Asia Pacific (APAC) procured $1,631.8 million of electronic system design products and services in Q4 2023, a 15.2% increase. The four-quarter moving average for APAC grew 16.7%.

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, SIP, 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^® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON^® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.orgto learn more.