Trade in design and engineering tools booming globally

Design and engineering tools used to create next generation electronic products are enjoying a market boom around the world.

The biggest boom for so-called EDA, or electronic design automation tools is the Asia-Pacific region where revenue increased
by 21.8 percent compared to the third quarter of 2011.

The Silicon Valley consortium EDAC reports tool revenues by product category and geographic regions, most recently for last year's third quarter.

SAN JOSE, California, January 7, 2013—The EDA Consortium (EDAC) Market Statistics Service (MSS) today announced that the Electronic Design Automation (EDA) industry revenue increased 4.9 percent for Q3 2012 to $1619.9 million, compared to $1543.9 million in Q3 2011. Sequential EDA revenue for Q3 2012 increased 1.7 percent compared to Q2 2012, while the four- quarters moving average, which compares the most recent four quarters to the prior four quarters, increased by 8.8 percent.

“The EDA industry recorded its eleventh consecutive year-over-year quarterly growth,” said Walden C. Rhines, board sponsor for the EDAC MSS and chairman and CEO of Mentor Graphics. “Asia/Pacific led the way with double-digit growth, while all other regions except Japan were also positive.”

Companies that were tracked employed 28,877 professionals in Q3 2012, an increase of 6.3 percent compared to the 27,162 people employed in Q3 2011, and up 2.4 percent compared to Q2 2012.
The complete MSS report, containing detailed revenue information broken out by both categories and geographic regions, is available via subscription from the EDA Consortium.
Revenue by Product Category
The largest category, Computer Aided Engineering (CAE), generated revenue of $632.5 million in Q3 2012, which represents an 11.6 percent increase over Q3 2011. The four-quarters moving average for CAE increased 11.0 percent.

IC Physical Design & Verification revenue decreased to $326.7 million in Q3 2012, a 3.4 percent decrease compared to Q3 2011. The four-quarters moving average increased 12.2 percent.
Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $153.0 million represents an increase of 9.0 percent compared to Q3 2011. The four-quarters moving average for PCB & MCM decreased 1.7 percent.

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Q3 2012 EDA Industry Revenue    Page: 2 of 3
Semiconductor Intellectual Property (SIP) revenue totaled $423.0 million in Q3 2012, a 3.2 percent increase compared to Q3 2011. The four-quarters moving average increased 9.0 percent.
Services revenue was $84.7 million in Q3 2012, a decrease of 4.6 percent compared to Q3 2011. The four-quarters moving average decreased 0.8 percent.