ESD Industry Reports Double Digit Growth in Q2 2026
News related to:ESD Alliance · 2 min read
MILPITAS, Calif., Oct. 19, 2026 /CourierPR/ -- The Electronic System Design (ESD) industry saw a significant increase in revenue in the second quarter of 2026, with the industry's total revenue reaching $5,710.8 million, up from $5,089.4 million in the second quarter of 2025. This growth marks a 12.2% increase, according to the latest Electronic Design Market Data (EDMD) report from the ESD Alliance, a SEMI Technology Coalition. The report also revealed that the four-quarter moving average for the ESD industry revenue increased to 11.2%, based on a comparison of the most recent four quarters to the prior four.
The EMD Alliance's report highlights that all product categories except Printed Circuit Board and Multi-Chip Module (PCB and MCM) reported gains in Q2 2026. IC Physical Design and Verification, Semiconductor Intellectual Property (SIP), and Services saw double-digit growth, with IC Physical Design and Verification revenue increasing by 16.6% to $818.3 million, and the four-quarter moving average for the category increasing by 5.4%. Semiconductor Intellectual Property (SIP) revenue increased by 20.4% to $2,199.0 million, with the four-quarter SIP moving average rising by 16.6%. Services revenue increased by 25.1% to $251.7 million, with the four-quarter Services moving average rising by 15.2%.
The EMD Alliance's report also showed that the Americas, the largest reporting region by revenue, saw a 7.1% increase in Q2 2026, with procurement reaching $2,443.5 million. The four-quarter moving average for the Americas rose by 8.6%. Europe, Middle East, and Africa (EMEA) saw a 2.3% increase in Q2 2026, with procurement reaching $665.6 million, and the four-quarter moving average for EMEA grew by 8.6%. Japan's procurement of electronic system design products and services increased by 9.3% to $303.1 million in Q2 2026, with the four-quarter moving average for Japan decreasing by 8.2%. Asia Pacific (APAC) saw a 22.4% increase in Q2 2026, with procurement reaching $2,298.7 million, and the four-quarter moving average for APAC grew by 18.3%.
The EMD Alliance's report also detailed the employment situation within the industry. In Q2 2026, the companies tracked in the EDMD report employed 71,396 people globally, a 1.6% decrease from the Q2 2025 headcount of 72,529 and a 1.6% decrease compared to Q1 2025.
The Electronic System Design Alliance (ESD Alliance) is the central voice to communicate and promote the value of the semiconductor design ecosystem as a vital component of the global electronics industry. As an international association of companies providing goods and services throughout the semiconductor design ecosystem, it is a forum to address technical, marketing, economic, and legislative issues affecting the entire industry.