ESD Alliance indicates that the electronic systems design ( ESD ) industry achieved revenue of $5.7108 billion in the second quarter of 2026, a 12.2% increase from $5.0894 billion in the second quarter of 2025. The organization stated that based on a comparison of the last four quarters with the previous four quarters, the four-quarter moving average has risen by 11.2%.

SEMI, the sponsor of the Electronic Systems Design Market Data Report, Silvaco Group, Inc, CEO of Walden C. Rhines stated: "The electronic design automation industry once again recorded strong year-over-year revenue growth in the second quarter of 2026. All product categories saw growth, except for printed circuit boards and multi-chip modules, among which IC physical design and verification, semiconductor IP, and services all recorded double-digit growth. Growth was achieved in all regions, with the Asia-Pacific region experiencing double-digit increases."

The companies tracked in the report employed 71,396 people globally in the second quarter of 2026, which is a 1.6% decrease from 72,529 people in the second quarter of 2025 and also a 1.6% decline compared to the first quarter of 2025.

The quarterly EDMD report includes detailed revenue data for the following categories and regions.

Revenues categorized by product and application type – year-over-year changes

• Computer-Aided Engineering ( CAE ) reported a 7.7% increase in revenue, reaching $2.0776 billion. The quarterly moving average for this category grew by 10.7%.
• IC Physical design and validation revenue grew by 16.6% to $818.3 million. The quarterly moving average for this category increased by 5.4%.
• Revenues for printed circuit boards and multi-chip modules (PCB and MCM) decreased by 15.4%, to $364.2 million. The quarterly moving average for this category fell by 1.3%.
• Semiconductor intellectual property ( SIP ) revenue increased by 20.4%, to $2.199 billion. The four-quarter moving average for this category grew by 16.6%.
• Service revenue increased by 25.1% to $251.7 million. The quarterly mobile average for this category grew by 15.2%.

Revenue by Region – Year-on-Year Change

• The Americas is the largest reporting region in terms of revenue, with purchases of $2.4435 billion in electronic system design products and services in the second quarter of 2026, representing a growth of 7.1%. The quarterly average for the Americas increased by 8.6%.
• Europe, the Middle East, and Africa ( EMEA ) purchased $665.6 million worth of electronic system design products and services in the second quarter of 2026, representing a growth of 2.3%. The four-quarter moving average for EMEA grew by 8.6%.
• In the second quarter of 2026, Japan's purchases of electronic system design products and services increased by 9.3%, reaching $303.1 million. Japan's quarterly average over the four quarters decreased by 8.2%.
• In the Asia-Pacific region ( APAC ), $2.2987 billion worth of electronic system design products and services were purchased in the second quarter of 2026, representing a growth of 22.4%. The quarterly average growth in APAC was 18.3%.

Regarding the EDMD report

ESD Alliance Electronic Design Market Data (previously known as Market Statistics Service) reports provide quarterly revenue data for electronic design automation (EDA), SIP, and service industries. The report data is provided by SEMI and covers both listed and unlisted companies. Each quarterly report is typically released about three months after the end of the quarter. EDMD The report data is categorized into the following sections:

• Revenues categorized by product type ( CAE , IC Physical Design and Verification, SIP , PCB , and MCM Layout as well as Services), and include multiple subcategories.
• Revenues by geographical region (Americas, EMEA, Japan, and APAC)
• Total number of employees in the participating companies

For information on the SEMI market research report, please visit the SEMI market research reports and database directory.

About Electronic System Design Alliance

Electronic System Design ( ESD ) Alliance is a technical alliance under SEMI, serving as the core voice for conveying and promoting the value of the semiconductor design ecosystem, which is an essential part of the global electronics industry. As an international association composed of companies that provide goods and services throughout the semiconductor design ecosystem, it also serves as a platform for discussing technical, market, economic, and legislative issues that affect the entire industry. For more information, please visit http :// esd-alliance.org.

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About SEMI

SEMI is a global industry association that connects over 4,000 companies and 1.5 million professionals worldwide, covering the semiconductor and electronic design and manufacturing supply chain. SEMI promotes member collaboration through initiatives such as advocacy, talent development, sustainable development, and supply chain management to jointly address major industry challenges. SEMI's SEM token issuance, along with N® exhibitions and events, technical communities, standards, and market intelligence, helps to drive business growth and innovation in the fields of design, devices, equipment, materials, services, and software, contributing to the creation of smarter, faster, and safer electronic products. For more information, please visit www.semi.org, contact local offices, and follow SEMI on LinkedIn and X.

The information provided by ESD Alliance is considered accurate and reliable, but 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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