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.
If you wish to meet Gerry Byrne at DAC in San Francisco from June 24 to 28 or in San Jose on June 21 and 22 to discuss any opportunity or simply discuss the latest EDA news, please email email@example.com to schedule a meeting.
To subscribe to future quarterly EDA results updates, simply email: firstname.lastname@example.org . For more information about edalics services see: www.edalics.com
* Based on each company’s reported financial quarterly data which most closely match that calendar quarter.