PCB Design Tool Sales Up 5.5% in Q1
MILPITAS, CA – Global sales of printed circuit board and multichip module design tools rose 5.5% in the first quarter from the same time last year, reaching $399.8 million, according to a report from the ESD Alliance released in mid-July.
The four-quarters moving average for PCB and MCM, which compares the most recent four quarters to the previous four quarters, rose 8.9%.
The broader electronic system design (ESD) industry saw revenue climb 12.8% year-over-year to $5.1 billion, fueled by double-digit gains in Semiconductor IP and Services.
All regions reported growth. The Americas led with $2.2 billion in sales (up 14%), followed by Asia Pacific at $1.9 billion (up 11.6%). EMEA and Japan each posted growth above 11%.
Among design categories, Semiconductor IP revenue surged 29.6%, and Services jumped 22.3%. CAE tools rose 7.8%, while IC Physical Design and Verification declined 9.9%.
EDA companies added nearly 2,600 workers to the employment rolls during the quarter, up 4.5% from a year ago.
The chip design software exports restrictions the US placed on China were not likely a factor in the quarter, ESDA spokesperson Wally Rhines told PCD&F/CIRCUITS ASSEMBLY. (Those restrictions were lifted in July.)
Listen to Rhines discuss the latest results on the PCB Chat podcast with Mike Buetow.
Hot Takes
Publicly listed Taiwanese-based PCB fabricators reported sales of rigid PCBs in June rose 17% year-over-year, and sales of flex circuits were up 10.5%. (TPCA)
Global PC shipments rose 6.5% in Q2 to 68.4 million units, as vendors front-loaded inventory ahead of expected US tariff hikes. (IDC)
Taiwan’s PCB supply chain is accelerating as AI server shipments surge and demand for custom ASIC-based servers grows. (DigiTimes)
Global semiconductor manufacturing equipment sales will reach $125.5 billion this year, up 7.4% year-over-year, fueled by AI demand and technology transitions in logic and memory. (SEMI)
India is reassessing its semiconductor strategy following the US decision to lift export curbs on chip design software to China. (India Electronics & Semiconductor Association)
Apple plans to ramp iPhone production in India to 60 million units despite the return of 300 Chinese engineers from Foxconn. (PTI)
The advanced IC substrate market is projected to hit $31 billion by 2030, driven by momentum in glass core and embedded die tech. (Yole Group)
Over 40% of agentic AI projects will be canceled by 2027, due to high costs, limited ROI and poor risk management despite growing enterprise interest. (Gartner)
Advanced chipmaking capacity will grow 69% by 2028, driven by AI demand, with 2nm and below nodes seeing over 120% investment growth. (SEMI)
The server market grew at its highest quarterly growth rate ever – 134% – in the March period. (IDC)
North American PCB shipments in June fell 8.6% on a 90-day moving basis versus a year ago and shipments plunged 19.2% sequentially. Year-to-date shipments are up 5.3% through June. PCB bookings were up 4.9 % year-over-year and down 2.1% sequentially. For the year, bookings are up 16.2%. (GEA)
North American EMS shipments rose 3% in June from a year ago and were up 2.4% sequentially. Year-to-date shipments are down 0.3% year-over-year. Bookings fell 8.9% year-over-year and decreased 17.4% from May, and are up 0.2% for the year. (GEA)