Electronic system design (ESD) industry posts $4 billion in revenue in Q2-2023

Electronic system design (ESD) industry revenue increased 5.3% to $3,962.7 million in the second quarter of 2023 from $3,763.6 million in the second 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 9.5%.

“Growth in total electronic design automation (EDA) revenue in Q2 23 was limited by weak semiconductor IP revenue,” said Dr. Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “However, total license and maintenance revenue, which includes all design tools, was strong at 16.1% overall with double-digit growth in all regions, except Japan.”

The companies tracked in the EDMD report employed 59,160 people globally in Q2 2023, an 11.8% jump over the Q2 2022 headcount of 52,918 and up 2.5% compared to Q1 2023.

Revenue by product and application category
Computer-aided engineering (CAE) revenue jumped 19.7% to $1,512.4 million. The four-quarter CAE moving average increased 17.6%. IC physical design and verification revenue rose 14.2% to $689 million. The four-quarter moving average for the category increased 17.2%.

PCB and multi-chip module (PCB and MCM) revenue increased 6.3% to $369 million. The four-quarter moving average for PCB and MCM rose 11.7%. Semiconductor IP (SIP) revenue decreased 11.6% to $1,255 million. The four-quarter SIP moving average fell 1.6%. And, services revenue increased 5.2% to $137.5 million. The four-quarter services moving average rose 12.3%.

Revenue by region
The Americas, the largest reporting region by revenue, procured $1,627.9 million of electronic system design products and services in Q2 2023, an 0.6% decline. The four-quarter moving average for the Americas rose 7.5%.

Europe, Middle East, and Africa (EMEA) procured $509.4 million of electronic system design products and services in Q2 2023, a 7.8% increase. The four-quarter moving average for EMEA grew 8.2%.

Japan’s procurement of electronic system design products and services decreased 4.3% to $241.6 million. The four-quarter moving average for Japan fell 0.3%.

Finally, Asia Pacific (APAC) procured $1,583.9 million of electronic system design products and services in Q2 2023, a 13.1% increase. The four-quarter moving average for APAC grew 14.4%.