ESD industry posts $4.4 billion in revenue in Q4 2023

10th April 2024

SEMI

Harry Fowle

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The Electronic System Design (ESD) industry revenue increased 14% to $4,423 million in the fourth quarter of 2023 from the $3,879.9 million logged in the third quarter of 2023, 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 14.1%.

“Electronic design automation (EDA) continued to report strong revenue growth in Q4 2023,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “The Computer-Aided Engineering, Printed Circuit Board and Multi-Chip Module, Semiconductor Intellectual Property, and Services categories reported double-digit growth. Further, all geographic regions reported substantial growth.”

The companies tracked in the EDMD report employed 60,106 people globally in Q4 2023, an 8.9% jump over the Q4 2022 headcount of 55,192 and up 0.6% compared to Q3 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 19.5% to $1,512.1 million. The four-quarter CAE moving average increased 19.3%.
IC Physical Design and Verification revenue declined 1% to $691.5 million. The four-quarter moving average for the category increased 20%.
Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 21% to $410.8 million. The four-quarter moving average for PCB and MCM rose 18.9%.
Semiconductor Intellectual Property (SIP) revenue increased 13.7% to $1,632.4 million. The four-quarter SIP moving average rose 5.9%.
Services revenue jumped 25.4% to $176.2 million. The four-quarter Services moving average rose 10.8%.

Revenue by region – year-over-year change

The Americas, the largest reporting region by revenue, procured $1,921 million of electronic system design products and services in Q4 2023, an 11.9% increase. The four-quarter moving average for the Americas rose 11.6%.

Europe, Middle East, and Africa (EMEA) procured $608.2 million of electronic system design products and services in Q4 2023, a 20.5% increase. The four-quarter moving average for EMEA grew 17.8%.

Japan’s procurement of electronic system design products and services grew 8.3% to $262 million. The four-quarter moving average for Japan increased 9.4%.

Asia Pacific (APAC) procured $1,631.8 million of electronic system design products and services in Q4 2023, a 15.2% increase. The four-quarter moving average for APAC grew 16.7%.