MILPITAS, CA – Sales of printed circuit board and multichip module design software jumped more than 19% year-over-year in the fourth quarter, helping to boost overall EDA revenue to another quarterly gain.

For the period ended Dec. 31, PCB/MCM design tool revenue increased 19.4% to $295.3 million, according to the Electronic System Design Alliance. The four-quarters moving average for PCB & MCM increased 15.1%.

Electronic design automation industry revenue increased 2.2% year-over-year in the fourth quarter to $2.62 billion. For 2019, EDA industry revenue reached $10.2 billion, up 8.3% over 2018.

“The EDA industry reported increased revenue in the fourth quarter compared to the fourth quarter of 2018, in part due to strong growth in Europe, Middle East and Africa,” said Walden C. Rhines, CEO emeritus, Mentor. “For the full year 2019, we saw increased growth in all four of the major EDA categories: CAE, PCB and MCM, IC physical design and verification, and SIP, as well as in the Americas, EMEA, and Asia-Pacific regions.”   

Rhines spoke with PCD&F about the latest data on PCB Chat this week: https://upmg.podbean.com/e/pcb-chat-episode-53-wally-rhines-on-the-q4-eda-market/

Tracked companies employed 45,416 professionals in the fourth quarter, up 6.1% year-over-year and 1% sequentially.

For the quarter, computer-aided engineering (CAE) generated revenue of $874.4 million, an increase of 1% year-over-year. The four-quarters moving average for CAE increased 6.5%. IC physical design and verification revenue was $466.4 million, down 3.9% compared to the fourth quarter of 2018. The four-quarters moving average increased 9.5%.

Semiconductor intellectual property (SIP) revenue totaled $900.6 million, up 4%. The four-quarters moving average increased 10.1%. Services revenue was $89.6 million, a decrease of 15%. The four-quarters moving average decreased 10.9%.

The Americas, EDA’s largest region, purchased $1.12 billion of EDA products and services in the fourth quarter, a decrease of 2.9% year-over-year. The four-quarters moving average for the Americas increased 2.4%. Revenue in Europe, the Middle East, and Africa (EMEA) increased 31% on revenues of $445.1 million. The EMEA four-quarters moving average increased 8.6%.

Japan’s sales decreased 6% to $211.4 million. The four-quarters moving average decreased 6.7%. Asia/Pacific (APAC) region revenue decreased 0.2% to $844.2 million. The four-quarters moving average increased 13.6%.