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EDA gains 17.6% YoY growth

Posted: 10 Oct 2011 ?? ?Print Version ?Bookmark and Share

Keywords:EDA? CAE? PCB? revenue?

The EDA segment revenue achieved $1.438 billion in Q2, a growth of 17.6 percent compared to Q2 last year, attaining its highest YoY increase in any Q2 for the past decade, EDA Consortium (EDAC) stated.

While the annual growth was the highest in Q2 in 10 years, sales declined 0.6 percent compared to Q1. Only two quarters have shown stronger growth in EDA revenue, the 4Q06 and 4Q10, EDAC added.

EDA growth typically lags behind semiconductor industry growth by about a year, according to Walden Rhines, chair of EDAC. During a downturn and its immediate aftermath, chip companies sometimes put off investment in EDA software. This leads to pent up demand that translates into increased sales after chip companies are certain that they are in an upswing. EDA is now benefitting from a 2010 that saw the semiconductor industry bounce back from recession to growth by more than 30 percent, Rhines explained.

EDA's largest category, computer aided engineering (CAE), had sales of $549.8 million in Q2, up 19.8 percent from the same period last year. Revenue from the IC design and verification category also grew to $286.9 million, up 5.8 percent from the same period, said EDAC.

Printed circuit board (PCB) and multichip module revenue was up 21.7 percent YoY, reaching $144.9 million. Semiconductor intellectual property revenue was up 22.6 percent YoY to $367.7 million. Services revenue was $88.8 million in Q2, up 19.9 percent compared to 2Q10, EDAC noted.

EDA sector revenue

EDA product and services revenue from the Americas hit $626.1 million in Q2, up 21.1 percent from the same period last year. Revenue from Europe, the Middle East and Africa grew 8.8 percent YoY to reach $246.5 million. Revenue from Japan increased 17.8 percent YoY to reach $253.9 million, EDAC stated. Revenue from the APAC region was up 18.1 percent YoY, reaching $311.6 million.

Companies tracked by EDAC employed 26,721 professionals in Q2, an increase of one percent compared to Q1, and an increase of 2.9 percent compared with 2Q10, EDAC added.

Rhines acknowledged that semiconductor companies are reporting a softening of demand that could translate into tougher quarters for EDA down the road. However, he said the base of EDA users has grown to include a lot more systems vendors, leaving EDA less vulnerable to the cycles of the semiconductor industry.

- Dylan McGrath
??EE Times

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