Semiconductor IP Market to Exceed $8 Billion by 2020

[Daniel Nenni]

One of the mainstays of the System-on-a-Chip (SoC) market is the continued growth of the 3rd Party Semiconductor Intellectual Property (SIP) market. The products developed and marketed by the SIP market enable SoC designers to create amazing cutting-edge silicon solutions employed in every niche of today's semiconductor market. A new Semico Research report, Licensing, Royalty and Service Revenues for 3rd Party SIP: A Market Analysis and Forecast, forecasts the market to exceed $8 billion by 2020. However, the 'law of large numbers' will assert itself, and the torrent of growth over the past 10 years will start to slow.

"The number of SIP blocks in all types of SoCs continues to climb, and the number of SoCs that have SIP blocks also continues to increase each year, a sure sign of a healthy market," said Rich Wawrzyniak, Principal Analyst for ASIC & SoC at Semico Research Corp. "It is then appropriate to focus on the individual market segments instead of only on the total market revenue to discern where the strongest growth lies," said Wawrzyniak.

Key findings of the report include:

• The CPU IP market will account for 31.3% of total market revenues by 2020;
• A licensable programmable fabric is entering the market from several companies bringing new capabilities and functionality to SoC designers;
• The Asia Pacific IP market will have a CAGR of 13.1% through 2020;
• New embeddable memory architectures are entering the market as licensable SIP, and for the first time they are supported by major silicon foundries. MRAM, STTRAM and ReRAM are poised to debut;
• The China IP market is forecast to reach $1.4 billion by 2020.

Licensing, Royalty and Service Revenues for 3rd Party SIP: Market Analysis and Forecast is available for immediate delivery. This report analyzes the SIP market by functional category and then sub-divides these categories into revenues for Licensing, Royalties and Services. Semico has arranged the market by the following SIP types:

SIP Types Profiled and Analyzed​

[table] align="center" style="margin-left: auto; background-color: transparent; width: 305.333px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid; border-collapse: collapse; margin-right: auto"
|-
| rowspan="1" colspan="1" style="vertical-align: top; width: 108.568px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | CPU SIP
| rowspan="1" colspan="1" style="vertical-align: top; width: 191.402px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Interconnect SIP
|-
| rowspan="1" colspan="1" style="vertical-align: top; width: 108.568px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | DSP SIP
| rowspan="1" colspan="1" style="vertical-align: top; width: 191.402px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Security SIP
|-
| rowspan="1" colspan="1" style="vertical-align: top; width: 108.568px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Graphics SIP
| rowspan="1" colspan="1" style="vertical-align: top; width: 191.402px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Audio SIP
|-
| rowspan="1" colspan="1" style="vertical-align: top; width: 108.568px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Memory SIP
| rowspan="1" colspan="1" style="vertical-align: top; width: 191.402px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Chip Enhancement SIP
|-
| rowspan="1" colspan="1" style="vertical-align: top; width: 108.568px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Analog SIP
| rowspan="1" colspan="1" style="vertical-align: top; width: 191.402px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Logic SIP
|-
| rowspan="1" colspan="1" style="vertical-align: top; width: 108.568px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" | Interface SIP
| rowspan="1" colspan="1" style="vertical-align: top; width: 191.402px; border-color: rgb(0, 0, 0); border-width: 1px; border-style: solid" |
|-
[/table]

Each category consists of licensing revenues, royalty revenues and service revenues with actual revenues tracked on a quarterly basis from 1Q06 - 2Q16 and then a forecast of revenues from 3Q16 - 4Q20. In addition, based on other research Semico has conducted to gather data on the SoC design start landscape, three charts are included for each IP category that show the following data (in US$):

• Average Licensing Revenues Per SoC Design ($K)
• Average Royalty Revenue Per SoC ($0.00)
• Average Service Revenues Per SoC Design ($K)

This report includes the SIP market broken down by geographical region (Americas, Europe, Japan, Asia Pacific, and China) and provides a forecast for each region for Licensing, Royalty and Service revenues.

The report includes both a Word file and an Excel spreadsheet, with over 241 charts and 139 tables in 106 pages.

Related Semico Research:
The IP Subsystem Market: An Evolving Landscape
ASIC Design Starts: Automotive on a Fast Track
ASIC Design Starts for 2016 by Key End Market Applications
System(s)-on-a-Chip: Changes in SoC Design Methodology II


For pricing and additional information, please contact:
Rick Vogelei
Business Development
Phone: 602-997-0337
Email: rickv@semico.com

About Semico
Semico is a semiconductor marketing & consulting research company located in Phoenix, Arizona. We offer custom consulting, portfolio packages, individual market research studies and premier industry conferences.

 

[Arthur Hanson]

Dan, I believe your numbers may be conservative as MEMS/sensors become integrated into the chip or at least in the same package.