EDA, IP Sales Up

Strongest growth in Asia/Pacific; Japan continues rebound; Americas steadily up.


EDA and IP sales increased 5.6% in Q2 to $2.013 billion, up from $1.907 billion in the same period in 2015, according to the most recent Electronic System Design Alliance numbers.

Asia/Pacific revenue increased 10.9% to $608.1 million; Japan increased 15.7% to $211.4 million. The Americas increased 4.4% to $908.4 million.

The only region that showed a decline was Europe, the Middle East and Africa, but that comparison may be misleading. Sales slumped 6.8% to $284.7 million in Q2 compared with the same period in 2015, but that is based on a one-time spike in 2015.

“This is steady as it goes,” said Wally Rhines, board sponsor for the ESD Alliance Market Statistics Service and chairman and CEO of Mentor Graphics. “It was a solid Q2. The big numbers were in CAE, where hardware acceleration is strong, and PCB, where there was 8% growth with help from data management and cable and wire harnesses.”

Q2 revenue by segment and region. Source: ESD MSS.

Rhines noted that India increased 20% in all categories, and Korea surged 15%.

On a macro level, growth rates in the EDA and IP markets normally are in sync with overall semiconductor industry, but the chip industry has dropped from 3% to 5% growth to about zero. This may be misleading, as well.

“If you plot silicon area and units, those seem to be growing. So what appears to have happened as that some of the TAM (total available market) appears to have vaporized because of the way we count sales. Apple and Samsung now buy their own wafers, and they are close to 3% of the market. Five years ago they were counted in those numbers.”

Total EDA, SIP and services revenue by region. Source: ESD MSS.