Electronic System Design Industry Posts $5.7 Billion in Revenue in Q2 2026, ESD Alliance Reports

Electronic System Design Industry Posts $5.7 Billion in Revenue in Q2 2026, ESD Alliance Reports

IC Physical Design & Verification, Semiconductor IP, and Services Reported Double-Digit Year-over-Year Revenue Increase

MILPITAS, Calif., Oct. 19, 2026 /PRNewswire/ -- Electronic System Design (ESD) industry revenue increased 12.2% to $5,710.8 million in the second quarter of 2026 from the $5,089.4 million registered in the second quarter of 2025, the ESD Alliance, a SEMI Technology Coalition, announced today in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average rose 11.2%, based on a comparison of the most recent four quarters to the prior four.

"The electronic design automation industry once again reported strong year-over-year revenue growth in Q2 2026," said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report and Chief Executive Officer of Silvaco Group, Inc. "All product categories except Printed Circuit Board and Multi-Chip Module reported gains, with IC Physical Design and Verification, Semiconductor IP, and Services showing double digit growth. All geographic regions reported growth in Q2, with double digit increases in the APAC region."

The companies tracked in the EDMD report employed 71,396 people globally in Q2 2026, a 1.6% decrease from the Q2 2025 headcount of 72,529 and down 1.6% compared to Q1 2025.

The quarterly EDMD report contains detailed revenue information within the following category and geographic breakdowns.

				Second Quarter Revenue by Segment and Geographic Region ($Millions)
				Americas		EMEA*		Japan		APAC*		Q2' 26 Total		Q2' 25 Total		% Growth
Total EDA Revenue				1400.3		451.9		266.7		1141.2		3260.0		3061.4		6.5 %
CAE				921.5		286.5		100.0		769.5		2077.6		1929.0		7.7 %
PCB & MCM				139.6		79.2		39.7		105.8		364.2		430.5		-15.4 %
IC Physical Design & Verification				339.1		86.2		127.0		266.0		818.3		701.9		16.6 %
Total SIP Revenue				881.7		183.0		21.9		1112.5		2199.0		1826.7		20.4 %
Reporting SIP Companies				289.2		70.5		21.9		343.6		725.2		618.9		17.2 %
Non-reporting SIP Companies**				592.4		112.5		0.0		768.9		1473.9		1207.8		22.0 %
Total Services Revenue				161.5		30.7		14.5		45.0		251.7		201.2		25.1 %
Total EDA, SIP & Services Revenue				2443.5		665.6		303.1		2298.7		5710.8		5089.4		12.2 %
				* EMEA = Europe, Middle East, and Africa. APAC = Asia Pacific
				** Non-reporting SIP companies include ARM Holdings PLC (excl. ARM PIPD), CEVA Inc., and Rambus Inc. Beginning with Q4 2016, ARM PIPD exclusion is estimated.

Revenue by Product and Application Category - Year-Over-Year Change

• Computer-Aided Engineering (CAE) revenue increased 7.7% to $2,077.6 million. The four-quarter CAE moving average increased 10.7%.
  
  
• IC Physical Design and Verification revenue increased 16.6% to $818.3 million. The four-quarter moving average for the category increased 5.4%.
  
  
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue dropped 15.4% to $364.2 million. The four-quarter moving average for PCB and MCM decreased 1.3%.
  
  
• Semiconductor Intellectual Property (SIP) revenue increased 20.4% to $2,199.0 million. The four-quarter SIP moving average rose 16.6%.
  
  
• Services revenue increased 25.1% to $251.7 million. The four-quarter Services moving average rose 15.2%.

Revenue by Region - Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $2,443.5 million of electronic system design products and services in Q2 2026, a 7.1% increase. The four-quarter moving average for the Americas rose 8.6%.
  
  
• Europe, Middle East, and Africa (EMEA) procured $665.6 million of electronic system design products and services in Q2 2026, a 2.3% increase. The four-quarter moving average for EMEA grew 8.6%.
  
  
• Japan's procurement of electronic system design products and services increased 9.3% to $303.1 million in Q2 2026. The four-quarter moving average for Japan decreased 8.2%.
  
  
• Asia Pacific (APAC) procured $2,298.7 million of electronic system design products and services in Q2 2026, a 22.4% increase. The four-quarter moving average for APAC grew 18.3%.

About the EDMD Report
The ESD Alliance Electronic Design Market Data (formerly the Market Statistics Service) report presents Electronic Design Automation (EDA), SIP and Services industry revenue data quarterly. Both public and private companies contribute data to the report available from SEMI. Each quarterly report is published approximately three months after quarter close. EDMD report data is segmented as follows:

• Revenue by product category (CAE, IC Physical Design and Verification, SIP, PCB and MCM Layout, and Services) including numerous detailed sub-categories
• Revenue by geographic region (Americas, EMEA, Japan and APAC)
• Total employment at participating companies

For information about SEMI market research reports, visit the SEMI Market Research Reports and Databases Catalog.

About the Electronic System Design Alliance
The Electronic System Design (ESD) Alliance, a SEMI Technology Coalition, is the central voice to communicate and promote the value of the semiconductor design ecosystem as a vital component of the global electronics industry. As an international association of companies providing goods and services throughout the semiconductor design ecosystem, it is a forum to address technical, marketing, economic and legislative issues affecting the entire industry. For more information about the ESD Alliance, visit http://esd-alliance.org.

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About SEMI
SEMI is the global industry association connecting over 4,000 companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.

The information supplied by the ESD Alliance is believed to be accurate and reliable, but the ESD Alliance assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.

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