EDA Sets New Record

Quarterly numbers show robust growth in IP, physical design; Japan slides again.

popularity

EDA revenue grew 11.9% in Q4 2014 to $2.1 billion, a new record for the industry, propelled by strong growth in both IP and physical design.

On a sequential basis, that represented a 15.1% increase, while on a year-over-year basis it was 11.9%. The four-quarter moving average, which takes into account quarterly aberrations, showed a 7.3% increase.

“The semiconductor industry had a strong year, and more than three-fourths of EDA revenue comes from designing chips,” said Wally Rhines, board sponsor for the EDAC Market Statistics Service and chairman and CEO of Mentor Graphics.

IP grew 32%, not including IP numbers from ARM, CEVA and Rambus. Growth in physical design likewise was robust, up 26% year over year.

“The growth in physical design and verification suggests that new challenges are appearing there,” said Rhines. “In general, the TAM for EDA grows where there are new challenges.”

Employment in EDA was up 6.2%, as well. There were 31,735 EDA professionals in Q4 2014, compared with 29,880 in Q4 2013.

On the up side (Q4 2014 vs. Q4 2013):

• IC physical design and verification increased 25.9% to $483.7 million;
• IP increased 32% to $642.8 million;
• Services increased 4.9% to $101.6 million.

On the down side:

• CAE decreased 3.1% to $699.5 million;
• PCB and MCM decreased 7.6% to $176.2 million.

On a global basis, revenue from the Americas was $935.4 million in Q4, up 13.8% year over year. Asia/Pacific showed an increase of 33.9% to $632.9 million. Japan slid 19.5% to $206.8 million.

Below is the Q4 revenue by segment and geographic region, in millions of dollars:

Screen Shot 2015-04-13 at 8.11.11 AM

Source: EDAC