PCB Design Software Sales Up 3.4% YoY in Q3, ESD Alliance Says
MILPITAS, CA – Printed circuit board (PCB) and multichip module (MCM) design software revenue rose 3.4% in the September quarter, reaching $466 million, the ESD Alliance announced today.
The four-quarter moving average, which compares the most recent four quarters to the prior four, rose 8.1%.
Electronic system design (ESD) industry revenue increased 8.8% to $5.6 billion in the third quarter, from $5.1 billion in 2024. The four-quarter moving average rose 10.4%.
“The electronic design automation (EDA) industry continues to report strong year-over-year revenue growth in Q3 2025,” said Walden C. Rhines, spokesperson for the ESD Alliance. “All product categories reported increases, with semiconductor IP and services showing double-digit gains. Geographic regions, including Americas, EMEA and APAC reported growth in Q3, with a double-digit increase in APAC.”
The companies tracked in the report employed 73,185 people globally in Q3, up 17.3% over 2024 and up 0.9% sequentially. It brings the sector’s total employment growth to 60% since Q1 2020 (Figure 1).
Computer-aided engineering (CAE) revenue increased 9.1% to $2.1 billion. The four-quarter CAE moving average increased 11.6%. IC physical design and verification revenue increased 1.3% to $865 million. The four-quarter moving average for the category decreased 1.2%.
Semiconductor intellectual property (SIP) revenue increased 13.6% to $1.92 billion. The four-quarter SIP moving average rose 14.8%.
Services revenue increased 10.2% to $221.4 million. The four-quarter moving average rose 13.7%.
The Americas, the largest reporting region by revenue, procured $2.4 billion of electronic system design products and services in Q3 2025, a 3.4% increase. The four-quarter moving average for the Americas rose 10.3%. Europe, Middle East and Africa (EMEA) procured $675 million of electronic system design products and services, a 4.6% increase. The four-quarter moving average for EMEA grew 7.6%.
Japan’s revenues decreased 11.5% to $264 million in Q3. The four-quarter moving average for Japan increased 2.4%. Asia Pacific (APAC) procured $2.2 billion, up 20.5%. The four-quarter moving average for APAC grew 12.8%.
Hot Takes
Worldwide shipments of desktops, notebooks and workstations reached 279.5 million units in 2025, up 9.2% year-over-year, supported by replacement demand and a stronger second half. Q4 shipments totaled 75 million units, up 10% compared to 2024. Tightening memory and storage supply is expected to weigh on growth this year. (Omdia)
Several major memory makers are preparing to exit DDR4 in 2026, with Samsung reportedly standing firm on its end-of-life schedule. (TrendForce)
Global semiconductor sales climbed 29.8% year-over-year to a record $75.3 billion in November, with month-to-month growth of 3.5%. (SIA)
A shortage of high-quality glass cloth used in BT substrates is threatening supply stability for advanced chips. (Nikkei)
North American EMS shipments declined 0.7% year-over-year in November and fell 3.6% compared with October. Year-to-date shipments were down 0.9%. Bookings dropped 4.1% year-over-year and 9.7% sequentially. Year-to-date bookings were 0.5%. (GEA)
The global DRAM market is experiencing a rare price spike. Tight supply, rapid AI expansion, and expectation-driven buying have pushed memory prices higher since the second half of 2025. (DigiTimes)
Global PC shipments grew 9.6% year-over-year in the fourth quarter, reaching 76.4 million units. Average selling prices (ASPs) are expected to rise in 2026 as vendors prioritize midrange and premium systems to offset higher component costs, especially memory. (IDC)
India approved $4.6 billion in subsidized electronic component manufacturing projects across eight states, aiming to boost local supply chains, generate $28.6 billion in output and employ about 34,000 workers. (India IT Ministry)
Taiwan’s combined onshore and offshore PCB manufacturing output reached NT$244 billion ($7.73 billion) in the third quarter, a year-on-year increase of 7.2%. Cumulative output for the first three quarters totaled NT$667 billion ($21.1 billion), up 11.3% year-over-year. (TPCA)
Total North American PCB shipments increased 21.1% year-over-year in November, though volumes declined 4% sequentially. Year-to-date shipments were up 12.6% compared with the same period a year earlier. Bookings rose 23.3% from the previous year and slipped 0.7% sequentially, with year-to-date bookings increasing 16.6%. (GEA)
India is targeting PCB self-reliance with $2.4 billion in investment, aiming to attract 10 to 12 major producers, cut import reliance from 88%, and support a threefold industry expansion. (Elcina)
Delays and cancellations tied to Europe’s Chips Act are casting doubt on the EU’s goal of reaching 20% of global semiconductor production by value by 2030, exposing gaps in its industrial strategy. (EUToday)
China has mandated that chipmakers source at least 50% of equipment domestically for new capacity. (Reuters)
Global smartphone shipments increased 2.3% year-over-year to 336.3 million units in the fourth quarter, raising the total number of smartphones shipped in 2025 to 1.26 billion units. (IDC)