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Electronic System Design Revenue Rises 12.2% as Headcount Falls Year Over Year

Services revenue rose 25.1%, while Asia Pacific recorded the fastest regional growth at 22.4%.

Updated 2 min read
A technician examines a circuit board at an electronics design lab in Milpitas, California. (AI-generated image / EconoTimes)
A technician examines a circuit board at an electronics design lab in Milpitas, California. (AI-generated image / EconoTimes)

Industry revenue for electronic system design totaled $5,710.8 million in Q2 2026, a 12.2% increase from a year earlier, the Electronic System Design (ESD) Alliance, a SEMI Technology Coalition, reported.

The alliance’s quarterly Electronic Design Market Data (EDMD) report listed the comparable Q2 2025 total at $5,089.4 million. Revenue averaged 11.2% more across the latest four quarters than across the preceding four.

The prior-quarter release recorded $5,747.8 million in Q1 2026 revenue, up 12.7% year over year. The Q2 growth rate was lower than the rate reported for Q1.

Services had the sharpest percentage rise among reported categories, with revenue reaching $251.7 million, up 25.1%. Semiconductor intellectual property (IP) revenue increased 20.4% to $2,199.0 million, while IC physical design and verification grew 16.6% to $818.3 million.

Computer-aided engineering revenue reached $2,077.6 million, up 7.7%. Printed circuit board and multi-chip module revenue contracted 15.4% to $364.2 million, making it the only category to post a year-over-year decline.

Asia Pacific had the fastest regional growth, with revenue up 22.4% to $2,298.7 million. The Americas remained the largest region at $2,443.5 million, a 7.1% increase. Revenue in EMEA reached $665.6 million, up 2.3% year over year; Japan recorded $303.1 million, up 9.3%.

Companies tracked by the report counted 71,396 employees in Q2, down 1.6% from the Q2 2025 total of 72,529.

The EDMD report covers electronic design automation, semiconductor IP and services, with data grouped by category and region. Public and private companies submit figures, while individual participants’ revenue remains confidential. SEMI says the quarterly report is generally published about three months after a quarter ends; its Q2 announcement did not specify a date for the next release.

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