Global semiconductor revenue grew to $111.1 billion in Q1 2018, or 20% vs. Q1 2017 (SIA), extending the recent strong growth of 22.5% growth in Q4 2017 and 21.6% 2017 full year growth to $412 Billion. Gartner is forecasting further solid growth in semiconductor revenue to $470 billion for 2018.
Of the two major EDA suppliers, Synopsys grew revenues by 14.2% Q1* 2018 vs Q1* 2017, while Cadence reported 8.5% growth:
For comparison, the % growth rates in the previous quarter, Q4* 2017 versus Q4* 2016 were Synopsys 17.9%, Cadence 7.0%, ESD Alliance 10.7% and semiconductor 22.5%.
Examining the delta in revenue growth in dollars, Synopsys and Cadence’s Q1* 2018 vs Q1* 2017 revenues increased by $96.7M and $40.4M respectively. Synopsys came very close to its prior mid-point guidance of $97.4M revenue growth while Cadence surpassed its prior mid-point revenue growth guidance for the quarter by $12.3M:
Guidance for the next quarter
The EDA companies’ own guidance (mid-point) for Q2* 2018 equates to percentage revenue growth as follows: Synopsys: 11.1% ($77.1M growth to $772.5M); Cadence 7.5% growth ($36M growth to $515M – according to ASC 606 reporting rules):
In summary, Q1 2018 global semiconductor revenue grew by 20% to $111.1 Billion, while Synopsys revenues grew by 14.2% and Cadence by 8.5%. The EDA companies own guidance for Q2* 2018 is for Synopsys to grow revenues by 11.1% and Cadence by 7.5%.
The author, Gerry Byrne is the founder of edalics, the only independent EDA Budget Management advisor to leading semiconductor companies.
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* Based on each company’s reported financial quarterly data which most closely match that calendar quarter.