EDA, IP Sales Strong Everywhere

Latest report shows growth in every segment and region as new markets kick into gear.

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EDA and semiconductor IP sales set new records around the globe, with the Americas passing the $1 billion revenue mark for the first time, according to just-released statistics from the ESD Alliance’s Market Statistics Service.

Newly compiled numbers for Q1 2018, the latest stats available, show growth in all regions, including Europe and Japan. In fact, the only negative number involved non-reporting IP companies, and that was due to changes in accounting rules rather than slackening sales


Fig. 1: Growth by geographic region and market segment, in $ millions. Source: ESD Alliance MSS

Total revenue for the industry increased 7.8% to $2.309 billion in Q1, versus $2.143 billion in the same period in 2017. The four-quarter moving average rose 9.1%.

“The numbers are very good,” said Wally Rhines, president and CEO of Mentor, a Siemens Business, and board sponsor of ESD Alliance MSS. “Everything is positive. We don’t see one area falling.”

Of particular note is the growth in hiring, which was up 10.4% in Q1 2018 versus 2017. There currently are 41,110 people employed in EDA and IP, compared with 37,229 in Q1 2017. Rhines noted this is a strong vote of confidence in how the industry will fare in coming months.

This marks nine straight quarter of year-over-year growth, comparing quarters to the same period in the previous year.

By category for Q1 2018 revenue versus 2017:

• CAE was $699.7 million, up 2.4%.
• IC physical design and verifcation was $472.6 million, up 19.3%.
• PCB and MCM revenue was $193.4 million, up 13.8%.
• IP was $830.7 million, up 5.1%.
• Services revenue was $112.5 million, up 9.7%.


Fig. 2: EDA/IP revenue chart by region for Q1. Source: ESD Alliance MSS



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