Electronic System Design Industry Reports 12.6% Revenue Growth for Q2 2020

The electronic system design ecosystem got welcome news this week from the most recent SEMI Market Statistics Service (MSS) from the ESD Alliance. Our market segment revenue rose 12.6% in Q2 2020 to $2,783.9 million, compared to $2,472.1 million in Q2 2019, with most categories logging double-digit increases. The four-quarter moving average, which compares the most recent four quarters to the prior four quarters, grew by 6.7%.

One particularly interesting statistic is the 5% increase in headcount or 46,579 employees in Q2 2020 over 44,372 employees Q2 2019. The number was up by 1.4% compared to Q1 2020.

In announcing the results for the quarterly MSS, Wally Rhines, Executive Sponsor of the SEMI EDA Market Statistics Service, notes: The EDA industry reported a double-digit revenue increase for Q2 2020, compared to Q2 2019. Individually, CAE, IC Physical Design and Verification, and SIP reported double-digit increases in Q2. All geographic regions reported revenue increases.”

Wally Rhines

Highlights with Revenue by Product Category in Q2 2020

• CAE revenue grew 16.1% to $922 million compared to Q2 2019. The four-quarter CAE moving average increased 7.1%.
• IC Physical Design and Verification revenue surged 16.8% to $584.1 million compared to Q2 2019. The four-quarter moving average for the category rose 4.8%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue decreased 0.3% to $243.5 million compared to Q2 2019. The four-quarter moving average for PCB and MCM increased 12.4%.
• SIP revenue increased 13.6% to $948.2 million compared to Q2 2019. The four-quarter SIP moving average grew 8.5%.
• Services revenue decreased 12.8% to $86.2 million compared to Q2 2019. The four-quarter Services moving average decreased 14.3%.

Revenue by Region in Q2 2020

• The Americas, the largest reporting region by revenue, purchased $1,155.6 million of electronic design products and services in Q2 2020, an 11.4% surge compared to Q2 2019. The four-quarter moving average for the Americas grew 4.6%.
• Europe, the Middle East, and Africa (EMEA) revenue increased 5.2%, to $377.5 million compared to Q2 2019. The four-quarter moving average for EMEA rose 12.2%.
• Japan revenue increased 9% to $240.4 million compared to Q2 2019. The four-quarter moving average for Japan rose 0.8%.
• APAC revenue grew 18.1% to $1,010.3 million compared to Q2 2019. The four-quarter moving average for APAC increased 6.3%.

Each MSS, published approximately three months after quarter close, reports EDA, IP and services industry revenue data quarterly with both public and private companies contributing data. It includes plenty of revenue information with category and geographic breakdowns. Available to ESD Alliance member companies each quarter, the MSS is an exceptional value and a good reason to consider joining today if your company is not yet a member. The ESD Alliance is a SEMI Strategic Technology Community. Companies can join SEMI and apply to become a member of the ESD Alliance at no extra cost.

To learn more about the ESD Alliance and our other programs and initiatives, visit the ESD Alliance website or contact me at pcohen@semi.org.

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This entry was posted on Tuesday, October 6th, 2020 at 10:45 am. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.