ESD Alliance Reports Strong Electronic System Design Industry Revenue Growth for Q4 2020

Industry Reports 15.4% Revenue Growth Overall; Surpasses $3 Billion for Fourth Quarter

MILPITAS, Calif. — April 13, 2021 — Electronic System Design (ESD) industry revenue increased by over $1 billion in 2020, marking a new milestone for the industry, the ESD Alliance, a SEMI Technology Community, announced today in the Q4 2020 Electronic Design Market Data report. Revenue increased 15.4% in Q4 2020 to $3,031.5 million, compared to $2,626.3 million in Q4 2019, representing only the fourth time since 2011 that year-over-year growth exceeded 15%. The four-quarter moving average, which compares the most recent four quarters to the prior four quarters, rose by 11.6%, the highest annual growth since 2011 and the second highest in the last 14 years.

The companies tracked in the EDMD report employed 48,478 people in Q4 2020, a 6.7% increase over the Q4 2019 headcount of 45,416 and up 3% compared to Q3 2020.“The industry reported a substantial double-digit year-over-year revenue increase for Q4 2020,” said Walden C. Rhines, Executive Sponsor, SEMI Electronic Design Market Data report. “Overall industry revenue surpassed $3 billion for Q4, with increases in all geographic regions. The Computer Aided Engineering (CAE), IC Physical Design and Verification, Semiconductor IP (SIP), and Services categories also reported fourth-quarter growth.”

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

Revenue by Product and Application Category in Q4 2020

• CAE revenue increased 9.4% to $956.9 million compared to Q4 2019. The four-quarter CAE moving average also increased 9.4%.
• IC Physical Design and Verification revenue increased 36.6% to $637.1 million compared to Q4 2019. The four-quarter moving average for the category rose 12.3%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue decreased 0.8% to $292.9 million compared to Q4 2019. The four-quarter moving average for PCB and MCM increased 4.3%.
• SIP revenue increased 16.9% to $1,052.9 million compared to Q4 2019. The four-quarter SIP moving average grew 17.1%.
• Services revenue increased 2.2% to $91.6 million compared to Q4 2019. The four-quarter Services moving average decreased 2.4%.

Revenue by Region in Q4 2020

• The Americas, the largest reporting region by revenue, purchased $1,304 million of Electronic System Design products and services in Q4 2020, a 15.8% increase compared to Q4 2019. The four-quarter moving average for the Americas increased 9.9%.
• Europe, the Middle East, and Africa (EMEA) revenue increased 2.7%, to $457.2 million compared to Q4 2019. The four-quarter moving average for EMEA grew 6.3%.
• Japan revenue increased 8% to $228.2 million compared to Q4 2019. The four-quarter moving average for Japan rose 8.2%.
• Asia Pacific (APAC) revenue increased 23.4% to $1,042 million compared to Q4 2019. The four-quarter moving average for APAC increased 17.1%.

About the EDMD Report

The ESD Alliance Electronic Design Market Data (formerly the Market Statistics Service) reports EDA, IP and services industry revenue data quarterly and is available from SEMI. Both public and private companies contribute data to the report. 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 (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific)

• 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 2,400 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