Global IP revenue fell 11.6% year-on-year, but EDA remains strong

The SEMI Technology Community ESD Alliance announced that electronic system design (ESD) industry revenue increased from US$3.7636 billion in the second quarter of 2022 to US$3.9627 billion in the second quarter of 2023, a year-on-year increase of 5.3%. If you compare the last four quarters to the previous four, the four-quarter moving average is up 9.5%.

"Growth in total electronic design automation (EDA) revenue in Q2 2023 was limited by weak semiconductor IP revenue," said Walden C. Rhines, executive sponsor of the SEMI Electronic Design Market Data report. "However, including all design tools Total license and maintenance revenue was overall strong at 16.1%, with double-digit growth in all regions except Japan."

Companies tracked by the EDMD report had 59,160 employees worldwide in the second quarter of 2023, an increase of 11.8% from the 52,918 employees in the second quarter of 2022 and an increase of 2.5% from the first quarter of 2023.

The quarterly EDMD report contains detailed revenue information with the following category and geographic breakdown.

• Computer-aided engineering (CAE) revenue jumped 19.7% to $1.5124 billion. The CAE moving average increased by 17.6% in the fourth quarter.

• IC physical design and verification revenue increased 14.2% to $689 million. The category's fourth-quarter moving average grew 17.2%.

• Printed circuit board and multichip modules (PCB and MCM) revenue increased 6.3% to $369 million. The fourth-quarter moving average for PCB and MCM was up 11.7%.

• Semiconductor intellectual property (SIP) revenue fell 11.6% to $1.255 billion. The SIP moving average fell 1.6% in the fourth quarter.

• Services revenue increased 5.2% to $137.5 million. The moving average of the services industry rose by 12.3% in the fourth quarter.

• The Americas, the largest reporting region by revenue, purchased $1,627.9 million in electronic system design products and services in the second quarter of 2023, down 0.6%. Americas fourth-quarter moving average rose 7.5%.

• Europe, the Middle East and Africa (EMEA) purchased $509.4 million in electronic system design products and services in the second quarter of 2023, an increase of 7.8%. The moving average growth rate for the Europe, Middle East and Africa region in the fourth quarter was 8.2%.

• Purchases of Japan's electronic system design products and services fell 4.3% to $241.6 million. Japan's fourth-quarter moving average fell 0.3%.

• In the second quarter of 2023, the Asia-Pacific region (APAC) purchased $1,583.9 million in electronic system design products and services, an increase of 13.1%. The Asia-Pacific region's moving average growth rate in the fourth quarter was 14.4%.