Electronic System Design (ESD) industry revenue increased by over $1 billion in 2020, marking a new milestone for the industry, the ESD Alliance, a SEMI Technology Community, announced today in the Q4 2020 Electronic Design Market Data report. Revenue increased 15.4% in Q4 2020 to $3,031.5 million, compared to $2,626.3 million in Q4 2019, representing only the fourth time since 2011 that year-over-year growth exceeded 15%. The four-quarter moving average, which compares the most recent four quarters to the prior four quarters, rose by 11.6%, the highest annual growth since 2011 and the second highest in the last 14 years.
“The industry reported a substantial double-digit year-over-year revenue increase for Q4 2020,” said Walden C. Rhines, Executive Sponsor, SEMI Electronic Design Market Data report. “Overall industry revenue surpassed $3 billion for Q4, with increases in all geographic regions. The Computer Aided Engineering (CAE), IC Physical Design and Verification, Semiconductor IP (SIP), and Services categories also reported fourth-quarter growth.”
The companies tracked in the EDMD report employed 48,478 people in Q4 2020, a 6.7% increase over the Q4 2019 headcount of 45,416 and up 3% compared to Q3 2020.
The quarterly EDMD report containing detailed revenue information with the following category and geographic breakdowns.
Revenue by Product and Application Category in Q4 2020
- CAE revenue increased 9.4% to $956.9 million compared to Q4 2019. The four-quarter CAE moving average also increased 9.4%.
- IC Physical Design and Verification revenue increased 36.6% to $637.1 million compared to Q4 2019. The four-quarter moving average for the category rose 12.3%.
- Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue decreased 0.8% to $292.9 million compared to Q4 2019. The four-quarter moving average for PCB and MCM increased 4.3%.
- SIP revenue increased 16.9% to $1,052.9 million compared to Q4 2019. The four-quarter SIP moving average grew 17.1%.
- Services revenue increased 2.2% to $91.6 million compared to Q4 2019. The four-quarter Services moving average decreased 2.4%.
Revenue by Region in Q4 2020
- The Americas, the largest reporting region by revenue, purchased $1,304 million of Electronic System Design products and services in Q4 2020, a 15.8% increase compared to Q4 2019. The four-quarter moving average for the Americas increased 9.9%.
- Europe, the Middle East, and Africa (EMEA) revenue increased 2.7%, to $457.2 million compared to Q4 2019. The four-quarter moving average for EMEA grew 6.3%.
- Japan revenue increased 8% to $228.2 million compared to Q4 2019. The four-quarter moving average for Japan rose 8.2%.
- Asia Pacific (APAC) revenue increased 23.4% to $1,042 million compared to Q4 2019. The four-quarter moving average for APAC increased 17.1%.