EDA, IP Numbers Up

Q2 revenue increases 8.5% as semiconductor industry prepares for increased complexity; Japan down again.

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EDA and IP numbers increased another 8.5% in Q2, with all regions but Japan showing positive growth. Total revenue was $1.91 billion for the quarter, up from $1.76 billion in Q2 of 2014.

The largest category, computer-aided engineering, was $657.2 million for the quarter, up 9.6% compared with the same period last year. IC physical design was $379.2 million, up 6% year over year, and IP was up 15% to $611.7 million.

“There is a good feeling that people are investing in engineering capability,” said Wally Rhines, board sponsor for the EDAC MSS and chairman and CEO of Mentor Graphics. “It also was a good quarter for reporting EDA IP providers, which were up 28%. Non-EDA IP providers were not as strong.”

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PCB and MCM revenue was $155.3 million, down 13% year over year, but much has changed since Q2 in this area. There is a surge in interest in 2.5D over the past few months, and Rhines said the real trend is reflected in the four-quarters moving average, which points steadily upward.

By region, the Americas grew 9.5% year over year; Europe, the Middle East and Africa (EMEA) grew 5.2%, and Asia/Pacific grew 13.2%. Japan slid another 3.2% to $182.8 million, including total EDA, semiconductor IP and services revenues. (See graph below)

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Also noteworthy was a 4.9% rise in employment in the EDA and IP industries. There are currently 32,806 professionals, up from 31,259 in Q2 of 2014 and up 2.1% compared to Q1 of this year.