Pacific Rim buoys sluggish sales elsewhere, but it’s not just more of the same.
EDA and IP revenue grew 8.8% in Q3 2025 to $5.566 billion, up from $5.115 billion in the same period in 2024, according to new data from ESD Alliance. But beneath those respectable, if not spectacular numbers, some interesting shifts are underway.
China returned to double-digit growth after several quarters of lackluster sales. But the biggest surprise was EDA/IP revenues from South Korea and Taiwan, and to a lesser extent Japan, all of which are investing heavily in AI.
“China is back,” said Walden C. Rhines, executive sponsor of the SEMI Electronic Design Market Data report. “It has been negative, and all of a sudden, it’s back. But we also had a strong Korea and Taiwan. The total was 20.5% growth, which exceeded everywhere else. The U.S. and Europe were sort of mediocre at 3.4% and 4.6% (respectively).”
China represents 10% of the total EDA market, with $1.9 billion in annual revenue. But South Korea, which barely registered in the past, has climbed to $1.4 billion, and Taiwan is close behind at $1 billion.
Fig. 1: Total EDA/SIP and services revenue, by region. Source: SEMI Electronic Design Market Data
Elsewhere, sales of EDA tools in India have been growing, although not so much in Q3. India currently accounts for roughly $500 million in annual revenue, Rhines said.
Fig. 2: Q3 revenue by segment and geographic region. Source: SEMI Electronic Design Market Data
By segment, in Q3 year-over-year comparisons:
Fig. 3: Four-quarter moving average, by segment. Source: SEMI Electronic Design Market Data
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