The Electronic System Design (ESD) industry continues to prove its value to the entire electronics supply chain as we report a revenue increase of 5.3% to $3,962.7 million in the second quarter of 2023. That’s up from $3,763.6 million in the second quarter of 2022, according to the latest Electronic Design Market Data (EDMD) report. The four-quarter moving average that compares the most recent four quarters to the prior four rose 9.5%. 
Likewise, companies tracked in the EDMD report employed 59,160 people globally in Q2 2023, an 11.8% jump over the Q2 2022 headcount of 52,918 and up 2.5% compared to Q1 2023.
“Total license and maintenance revenue, which includes all design tools, was strong at 16.1% overall with double-digit growth in all regions except Japan,” remarks Wally Rhines, Executive Sponsor of the SEMI EDMD report. He added that growth in total electronic design automation (EDA) revenue in Q2 23 was limited by weak semiconductor IP (SIP) revenue.
The table highlights percentage growth for the industry by major category.
Source: SEMI EDMD
This week’s quarterly EDMD report includes revenue information broken down by category and geographic areas. For example, Computer-Aided Engineering (CAE) revenue jumped 19.7% to $1,512.4 million as the four-quarter CAE moving average increased 17.6%. IC Physical Design and Verification revenue rose 14.2% to $689 million and the four-quarter moving average increased 17.2%. Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 6.3% to $369 million. The four-quarter moving average for PCB and MCM rose 11.7%. Services revenue increased 5.2% to $137.5 million as the four-quarter Services moving average rose 12.3%.
Only Semiconductor Intellectual Property (SIP) revenue decreased –– 11.6% to $1,255 million with the four-quarter SIP moving average falling 1.6%.
Two regions reported declines in Q2 2023 –– the Americas and Japan. The Americas, the largest reporting region by revenue, landed $1,627.9 million of electronic system design products and services in Q2 2023, an 0.6% decline, though the four-quarter moving average for the Americas rose 7.5%. Japan’s procurement of electronic system design products and services decreased 4.3% to $241.6 million as the four-quarter moving average for Japan fell 0.3%.
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