#USA #Milpitas #SEMI #ESD Alliance #Electronic Design Automation

ESD Industry Posts Strong Revenue Growth in Q2 2025

The latest report from the ESD Alliance, a SEMI Technology Community, highlights a robust growth in the Electronic System Design (ESD) industry, achieving a revenue of $5,089.4 million in the second quarter of 2025. This marks an 8.6% increase from the $4,685.5 million reported in the same quarter of 2024. Additionally, the four-quarter moving average witnessed a notable rise of 10.4% when comparing the latest four quarters to the previous four.

Key Insights from the Report

Walden C. Rhines, who serves as the Executive Sponsor of the SEMI Electronic Design Market Data report, emphasized that the Electronic Design Automation (EDA) sector is experiencing solid year-over-year revenue growth for the second quarter of 2025. Among the various product categories, significant gains were observed, especially in Computer-Aided Engineering (CAE) and Services, with both categories reflecting double-digit growth.

Product Category Performance

Here's a breakdown of the revenue changes by product and application category:

• - Computer-Aided Engineering (CAE) revenue surged 17.2% to reach $1,929 million. The four-quarter moving average for CAE also increased by 13.5%.
• - IC Physical Design and Verification revenue dropped by 9.9%, amounting to $701.9 million, with its moving average decreasing by 3.1%.
• - Revenue from Printed Circuit Board and Multi-Chip Module (PCB and MCM) climbed 7.8% to $430.5 million, with a moving average rise of 8.8%.
• - Semiconductor Intellectual Property (SIP) recorded an 8.7% increase, totaling $1,826.7 million, and a moving average increase of 13.2%.
• - Services revenue grew by 11.9% to $201.2 million, with its moving average showing a remarkable increase of 21.3%.

Regional Revenue Insights

The report also highlighted revenue performance across different geographic regions:

• - The Americas, being the largest reporting region, saw revenues of $2,282.4 million, marking an impressive increase of 12.2%. The four-quarter moving average for the Americas increased by 14.1%.
• - The Europe, Middle East, and Africa (EMEA) region's procurement reached $650.9 million, reflecting an increase of 11.4%, with a moving average growth of 10.7%.
• - Japan faced a decline, with revenues decreasing by 9.2% to $277.4 million, though its moving average noted a growth of 4.4%.
• - The Asia Pacific (APAC) region saw a revenue rise of 6.7%, reaching $1,878.7 million, coupled with a moving average increase of 7.2%.

Looking Ahead

The impressive growth in the ESD sector underscores its critical role in the electronics industry. With an expanded workforce of 72,529 employees globally in Q2 2025—an increase of 14.8% from 63,188 year-over-year and up 12.6% from the previous quarter—indicates the industry's resilience and capacity for advancement.

The EDMD report stands as a testament to the ongoing evolution and development within the EDA sector, driven by continual innovation and market demands. As we look forward, the expertise of the ESD Alliance will be essential in navigating the challenges and opportunities that arise in this dynamic field.

For further insights into the ESD marketplace, as well as detailed research findings, visit the SEMI Market Research Reports and Databases Catalog.