MILPITAS, Calif. — 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.
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%.
