ESD Alliance Reports Strong Electronic Design Automation Industry Revenue Growth for Q3 2020

Industry Reports 15% Revenue Growth Overall; Semiconductor IP and Asia Pacific Surpass $1B.

published in Finance on 11/01/2021

MILPITAS, Calif. - January 11, 2021 - Electronic Design Automation (EDA) industry revenue increased 15% in Q3 2020 to $2,953.9 million, compared to $2,567.7 million in Q3 2019, with all categories logging significant gains, the Electronic System Design (ESD) Alliance Market Statistics Service (MSS) announced today. The four-quarter moving average, which compares the most recent four quarters to the prior four quarters, rose by 8.3%. The ESD Alliance is a SEMI Technology Community.

The companies tracked in the MSS report employed 47,087 people in Q3 2020, a 4.8% increase over the Q3 2019 headcount of 44,950 and up 1.1% compared to Q2 2020.“The EDA industry reported a substantial double-digit year-over-year revenue increase for Q3 2020,” said Walden C. Rhines, Executive Sponsor, SEMI EDA Market Statistics Service. “All product categories and geographic regions reported increases in Q3. The Computer Aided Engineering (CAE), Semiconductor IP (SIP), and Services categories and, regionally, the Americas, Europe, Middle East and Africa, and Asia Pacific reported double-digit growth. Further, the Semiconductor IP category and the Asia Pacific region both surpassed $1 billion in quarterly revenue.”

The quarterly MSS report containing detailed revenue information with category and geographic breakdowns is available to ESD Alliance members.

Revenue by Product Category in Q3 2020

  • CAE revenue increased 10.7% to $927.6 million compared to Q3 2019. The four-quarter CAE moving average increased 7.2%.
  • IC Physical Design and Verification revenue increased 9.1% to $608.2 million compared to Q3 2019. The four-quarter moving average for the category rose 3.2%.
  • Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 8.3% to $260.4 million compared to Q3 2019. The four-quarter moving average for PCB and MCM increased 9.8%.
  • SIP revenue increased 25.8% to $1,051.7 million compared to Q3 2019. The four-quarter SIP moving average grew 13.9%.
  • Services revenue increased 11% to $105.9 million compared to Q3 2019. The four-quarter Services moving average decreased 6.7%.

Revenue by Region in Q3 2020

  • The Americas, the largest reporting region by revenue, purchased $1,307.2 million of EDA products and services in Q3 2020, an 11.7% increase compared to Q3 2019. The four-quarter moving average for the Americas increased 5.1%.
  • Europe, the Middle East, and Africa (EMEA) revenue increased 4.9%, to $368.3 million compared to Q3 2019. The four-quarter moving average for EMEA grew 13.4%.
  • Japan revenue increased 6% to $232.4 million compared to Q3 2019. The four-quarter moving average for Japan rose 4.7%.
  • Asia Pacific (APAC) revenue increased 26.4% to $1,046 million compared to Q3 2019. The four-quarter moving average for APAC increased 11.3%.