Electronic System Design Industry Logs $3.9 Billion in Revenue in Q4 2022, ESD Alliance Reports

MILPITAS, Calif. — May 1, 2023 — Electronic System Design (ESD) industry revenue increased 11.3% from $3,468.2 million in the fourth quarter of 2021 to $3,858.7 million in the fourth 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 12.6%.

“The electronic design automation (EDA) industry posted double-digit gains in Q4 2022, with increases in all major product categories,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “All geographic regions recorded growth in the quarter, with Asia Pacific reporting a double-digit increase.”

The companies tracked in the EDMD report employed 56,501 people globally in Q4 2022, a 10.3% increase over the Q4 2021 headcount of 51,236 and up 2% compared to Q3 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 jumped 16.9% to $1,244.2 million. The four-quarter CAE moving average increased 16.1%.

• IC Physical Design and Verification revenue rose 11.8% to $698.3 million. The four-quarter moving average for the category increased 6.9%.

• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue edged up 1.7% to $339.4 million. The four-quarter moving average for PCB and MCM rose 9.9%.

• Semiconductor Intellectual Property (SIP) revenue climbed 9.3% to $1,436.3 million. The four-quarter SIP moving average grew 12.9%.

• Services revenue increased 7.1% to $140.5 million. The four-quarter Services moving average rose 17.9%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $1,714.5 million of electronic system design products and services in Q4 2022, an 8.7% increase. The four-quarter moving average for the Americas rose 13.6%.

• Europe, Middle East, and Africa (EMEA) procured $504.6 million of electronic system design products and services in Q4 2022, a 4.6% increase. The four-quarter moving average for EMEA grew 3.6%.

• Japan’s procurement of electronic system design products and services increased 8.6% to $242.1 million. The four-quarter moving average for Japan rose 1.7%.

• Asia Pacific (APAC) procured $1,397.5 million of electronic system design products and services in Q4 2022, a 17.9% increase. The four-quarter moving average for APAC grew 17.1%.

About the EDMD Report

The ESD Alliance Electronic Design Market Data (formerly the Market Statistics Service) report presents quarterly revenue updates for the Electronic Design Automation (EDA), SIP and services industry. 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.