#USA #Milpitas #revenue growth #ESD Alliance #Electronic System Design

ESD Alliance Reports Strong Q3 2025 Performance in Electronic System Design Industry

The Electronic System Design (ESD) sector has demonstrated impressive growth, with revenues increasing by 8.8% to reach $5.566 billion in the third quarter of 2025. This figure marks a substantial rise from the $5.114 billion reported in the third quarter of 2024. Announced by the ESD Alliance, a community within SEMI, the latest Electronic Design Market Data (EDMD) report highlights encouraging trends for the industry.

Strong Growth Across All Regions and Product Categories

According to Walden C. Rhines, the Executive Sponsor of the EDMD report, the momentum in the electronic design automation (EDA) sector is palpable, with all product categories reflecting an upward trajectory. Noteworthy gains were observed particularly in Semiconductor Intellectual Property (SIP) and services, both of which saw double-digit increases. Growth was also reported geographically, with the Americas, EMEA, and Asia Pacific (APAC) regions experiencing revenue increases. The APAC region, in particular, saw an astonishing 20.5% rise, indicating the robust demand for ESD products and services within this market.

The employment landscape within the sector is expanding as well, with a total headcount of 73,185 across the companies tracked in the report, marking a 17.3% increase compared to the same quarter in the previous year.

Detailed Revenue Insights

The EDMD report breaks down the revenue by various product and application categories:

• - Computer-Aided Engineering (CAE): Revenue climbed by 9.1%, totaling $2,097.8 million, with a four-quarter moving average gain of 11.6%.
• - IC Physical Design and Verification: Showed a modest increase of 1.3%, bringing in $865.4 million.
• - Printed Circuit Board (PCB) and Multi-Chip Module (MCM): Increased by 3.4% to $466.2 million, with a steady average rise of 8.1%.
• - SIP: Recorded a stellar 13.6% increase, reaching $1,915.7 million, with an impressive moving average up by 14.8%.
• - Services: Also experienced growth, rising 10.2% to $221.4 million, with a four-quarter average gain of 13.7%.

Regional Highlights

The report also provides a geographic breakdown of revenue changes:

• - Americas: Remains the leader with $2,402.2 million in ESD products and services sold, marking a 3.4% increase alongside a moving average growth of 10.3%.
• - EMEA: Reported $675.1 million in sales, which is a 4.6% increase, coupled with a moving average boost of 7.6%.
• - Japan: Had a downturn, witnessing a drop of 11.5% with $264.0 million in revenue, although its moving average showed a slight increase of 2.4%.
• - APAC: Surged ahead, procured $2,223.0 million, equivalent to a growth of 20.5%. The moving average for APAC showed a decent increase of 12.8%.

Conclusion

The Q3 2025 EDMD report illustrates the resilience and growth potential of the Electronic System Design industry. With significant revenue increases, expanding employment, and a robust geographic performance, the future looks promising for stakeholders in the ESD sector. As technology continues to advance, the ESD Alliance emphasizes the critical role of electronic design within the broader electronics industry. To explore further, the ESD Alliance invites interested parties to access the full EDMD report and discover the detailed trends shaping the industry's future.