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EDA, IP Show Surprising Strength

Recent report points to solid growth across all regions.

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EDA and IP revenue surged 12.6% in Q2 to $2.78 billion, up from $2.47 billion in the same period in 2019, according to a just-released report. That growth occurred in all regions, as well.

What’s surprising about the report is just how strong sales were in the midst of the COVID-19 pandemic.

“Revenue was up strongly from Q1, and there was enormous growth,” said Wally Rhines, executive sponsor of the SEMI EDA Market Statistics Service, which released the report this week. “What’s clear here is the strength of the reports by EDA companies. In the second quarter, people were able to work from home and demand for software was strong. Even employment was up 5%.”

By category, CAE increased 16.1% to $922 million compared to Q2 2019. IC physical design and verification was up 16.8% to $584 million, and semiconductor IP grew 13.6% to $948 million. PCB revenue was flat at 0.3%, but Rhines said the quarter appears to be an aberration. For the year, PCB and multi-chip modules are up about 12%.


Fig. 1: Q2 revenue by segment and region. Source: SEMI ESD Alliance Market Statistics Service

Services revenue dipped 12.8%, the only sector to show a significant decrease. This is partly due to the pandemic, and partly due to the fact that companies are hiring rather than contracting services, Rhines said.

By region, the Americas grew 11.4% in Q2 year-over-year to $1.156 billion. Europe, the Middle East, and Africa was up 5.2% to $377.5 million, and APAC grew 18.1% to $1.01 billion. Japan also grew 9% to $240 million, which is the largest increase in Japan in years.


Fig. 2: EDA, SIP and services revenue by region. Source: ESDA MSS



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