MILPITAS, CA – Electronic design automation industry revenue rose to $4.7 billion in the third quarter of 2023, an increase of 25.2% from the third quarter of 2022, the ESD Alliance announced in its latest Electronic Design Market Data report.

The four-quarter moving average, which compares the most recent four quarters to the prior four, rose 13.8%.  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%.

"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 the third quarter, a 10.6% jump over the headcount of 53,034 in the third quarter of 2022 and up 1% compared to 2023's second quarter.

Revenue by Product and Application Category – Year-Over-Year Change

• Computer-Aided Engineering (CAE) revenue increased 22.4% to $1.7 billion. 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%.
• Semiconductor Intellectual Property (SIP) revenue increased 22.1% to $16 billion. 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 $1.98 billion 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 $1.86 billion of electronic system design products and services in Q3 2023, a 28.1% increase. The four-quarter moving average for APAC grew 17.8%.