Electronic System Design Industry Posts Record $4.7 Billion in Revenue in Q3 2023, ESD Alliance Reports

MILPITAS, Calif., Jan. 8, 2024 — (PRNewswire) — Electronic System Design (ESD) industry revenue increased 25.2% to $4,702.4 million in the third quarter of 2023 from the $3,756.3 million logged in the third 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 13.8%.   

"Electronic design automation (EDA) reported record revenue growth in Q3 23," said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. "This was the highest overall growth since Q4 1998. The Computer-Aided Engineering, IC Physical Design and Verification, Printed Circuit Board and Multi-Chip Module, and Semiconductor Intellectual Property categories reported double-digit growth. Further, all geographic regions reported substantial growth."

The companies tracked in the EDMD report employed 59,737 people globally in Q3 2023, a 10.6% jump over the Q3 2022 headcount of 53,034 and up 1% compared to Q2 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 22.4% to $1,657.5 million. The four-quarter CAE moving average increased 16.7%.

  • IC Physical Design and Verification revenue surged 45.3% to $904.5 million. The four-quarter moving average for the category increased 29%.

  • Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 23.6% to $426.1 million. The four-quarter moving average for PCB and MCM rose 14%.

  • Semiconductor Intellectual Property (SIP) revenue increased 22.1% to $1,575.9 million. The four-quarter SIP moving average rose 5.3%.

  • Services revenue slipped 3.9% to $138.3 million. The four-quarter Services moving average rose 6%.

Revenue by Region – Year-Over-Year Change

  • The Americas, the largest reporting region by revenue, procured $1,984.1 million of electronic system design products and services in Q3 2023, a 22.8% jump. The four-quarter moving average for the Americas rose 11.2%.

  • Europe, Middle East, and Africa (EMEA) procured $551.1 million of electronic system design products and services in Q3 2023, a 21.5% increase. The four-quarter moving average for EMEA grew 13.4%.

  • Japan's procurement of electronic system design products and services increased 30.5% to $309.3 million. The four-quarter moving average for Japan increased 9.4%.

  • Asia Pacific (APAC) procured $1,858 million of electronic system design products and services in Q3 2023, a 28.1% increase. The four-quarter moving average for APAC grew 17.8%.

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® connects more than 3,000 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, contact one of our worldwide offices, and connect with SEMI on  LinkedIn and  Twitter.

The information supplied by the ESD Alliance is believed to be accurate and reliable, but the ESD Alliance assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.

Press Contacts

Paul Cohen
ESD Alliance
A SEMI Technology Community
978-769-2106             

Jack Taylor
Siemens EDA PR
Siemens Digital Industries Software
512-560-7143 

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SOURCE SEMI

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