MILPITAS, Calif. — January 8, 2024 — 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
Themed Ready, Set and Ramp?, the event at the Ritz-Carlton in Half Moon Bay, Calif. will present industry intelligence to help inform company business plans and forecasts based on current market conditions.
The 2024 growth will be driven by capacity increases in leading-edge logic and foundry, applications including generative AI and high-performance computing (HPC), and the recovery in end-demand for chips. The capacity expansion slowed in 2023 due to softening semiconductor market demand and the resulting inventory correction.
“We congratulate the newly elected International Board members, Kai Beckmann and Benjamin Loh, and thank them for their commitment to guide SEMI in representing the global electronics manufacturing and design supply chain,” said SEMI President and CEO Ajit Manocha. “Kai and Benjamin add to the breadth and depth of knowledge on our Board of Directors and will help us to ensure that SEMI programs continue to advance semiconductor industry growth, address top concerns, and deliver exceptional member value.”
The leaders were also recognized for their contributions to the Path to Net Zero session during the SEMICON West 2023 CEO Summit keynote program. The honorees will be commemorated on the SEMI Wall of Fame at the association’s headquarters in Milpitas.
“We commend the thoughtful approach the U.S. Department of Commerce has taken in awarding incentives and are pleased to see the advancement of incentives to bolster the resiliency of the domestic semiconductor supply chain,” said Joe Stockunas, President of SEMI Americas. “In order for the global semiconductor industry to support the push for digitalization and a diverse range of smart applications over the coming years, we must go beyond elevating just one facet of the supply chain and pursue a fortified ecosystem encompassing equipment, materials and advanced packaging. SEMI has advocated with the U.S. Chips Program Office to distribute incentives with this goal in mind, and we are confident in their understanding of the industry’s needs."
“We anticipate a temporary contraction in 2023 due to the cyclical nature of the semiconductor market,” said Ajit Manocha, SEMI President and CEO. “2024 will be a transition year. We then expect a strong rebound in 2025, driven by capacity expansion, new fab projects, and high demand for advanced technologies and solutions across the front-end and back-end segments.”
Themed Forward as One, SEMICON Japan 2023 will highlight cutting-edge technology innovations in areas including artificial intelligence (AI), robotics, power electronics, Internet of Things (IoT), smart mobility, and quantum computing. The event will also feature presentations and executive panels on key industry topics with thought leaders from the electronics design and manufacturing ecosystem, academia, and government. 
With Europe projected to need 350,000 new workers in the semiconductor industry by 2030, Laith Altimime, President of SEMI Europe, emphasized the imperative for cultivating leaders capable of navigating the complexities of the semiconductor industry. “The semiconductor industry must further develop diverse leaders who can reshape businesses in a complex and fast-changing world of uncertainty. The growing number of job vacancies in Europe’s semiconductor sector risks undercutting its growth potential as companies expand manufacturing capacities. It is essential for leaders in the industry to unlearn outdated approaches and prepare for unforeseen challenges. The SEMI Leadership Accelerator will facilitate this transformative process.”
Headlining SEMICON Korea 2024 will be keynotes by representatives from SK hynix, Merck KGaA, Darmstadt, Germany, and Eliyan, while more than 30 conferences will feature presentations by 200 thought leaders. The exhibition area, covering more than 37,000 square meters (over 9 acres), will feature nearly 500 companies from across the Korea semiconductor ecosystem showcasing cutting-edge semiconductor manufacturing technologies and services at 2,100 booths.