A Cheer for the Electronic System Design Industry’s 17%

Bridging the Frontier

Bob Smith, Executive Director
Bob Smith is Executive Director of the ESD Alliance responsible for its management and operations. Previously, Bob was senior vice president of Marketing and Business Development at Uniquify, responsible for brand development, positioning, strategy and business development activities. Bob began his … More »

A Cheer for the Electronic System Design Industry’s 17% Year-Over-Year Revenue Growth in Q3 2021

January 16th, 2022 by Bob Smith, Executive Director

Let’s cheer for a piece of great news –– the Electronic System Design industry revenue increased 17.1% year-over-year from $2,953.9 million to $3,458.1 million in Q3 2021! This comes from the most recent Electronic Design Market Data (EDMD) report produced by the ESD Alliance, a SEMI Technology Community, where I serve as Executive Director.

The four-quarter moving average comparing the most recent four quarters to the prior four rose 16.1%. All regions reported double-digit growth with product categories CAE, Printed Circuit Board and Multi-Chip Module, semiconductor IP and Services showing double-digit growth.

Q3 2021 revenue percentage by category

Taking a deeper dive into the year-over-year revenue by product and application category shows:

CAE revenue increased 13.7% to $1,054.7 million and the four-quarter moving average increased 11.8%.
IC Physical Design and Verification revenue rose 0.7% to $612.6 million with the four-quarter moving average of 16% growth.
Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 14.5% to $298.3 million. The four-quarter moving average saw an increase of 10.9%.
Semiconductor IP revenue rose 30.6% to $1,373.3 million for a four-quarter moving average of 22.1% growth.
Services revenue increased 12.5% to $119.1 million. The four-quarter moving average increased 9.2%.

Q3 20201 revenue percentage by region

As for the year-over-year revenue change by region:

The largest reporting region by revenue is the Americas. The region purchased $1,494.5 million of ESD products and services in Q3 2021, a 14.3% increase. The four-quarter moving average rose 15.8%.
Europe, Middle East, and Africa (EMEA) revenue increased 22.6% to $451.7 million with a four-quarter moving average of 11.9% growth.
Japan revenue increased 11.8% to $259.8 million and the four-quarter moving average rose 3.3%.
Asia Pacific (APAC) revenue increased 19.7% to $1,252.1 million. The four-quarter moving average grew by 21.3%.

Significantly, companies tracked in the EDMD report employed 51,182 people globally in Q3 2021, an 8.7% increase over the Q3 2020 headcount of 47,087 and up 2.4% compared to Q2 2021.

The ESD Alliance Electronic Design Market Data (EDMD), formerly known as the Market Statistics Service, report has much more detailed information than provided here. Published quarterly, it presents EDA, SIP and services industry revenue data from public and private companies. Each quarterly report is published approximately three months after quarter close.

For information about SEMI market research reports, visit the SEMI Market Research Reports and Databases Catalog or contact me at bsmith@semi.org. Or, visit the ESD Alliance website to learn more about the ESD Alliance. As the central voice to communicate and promote the value of the semiconductor design ecosystem as a vital component of the global electronics industry, we host various programs, initiatives and events listed on the website.

Our first event of 2022 will be the award ceremony and dinner honoring Dr. Anirudh Devgan, President and CEO of Cadence, the recipient of the 2021 Phil Kaufman Award for Distinguished Contributions to Electronic System Design. The dinner, hosted by the ESD Alliance and the IEEE Council on Electronic Design Automation (CEDA), will be held Thursday, March 10, from 6:30pm until 9:30pm at The GlassHouse in San Jose, Calif. Registration information can be found at: https://bit.ly/3qEDro8.

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Website: www.esd-alliance.org

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