Semiconductor IP Market Key Development, Competitive Analysis, and Trends

The Global Semiconductor IP Market is subject to witness a substantial growth due to the rising demand for high-end technology to improve various business processes and organizational productivity. Deployment of multi-core technology along with design complexity in semiconductor ICs and System on Chip (SoC) are predicted to stimulate market demand for semiconductor IPs over the forecast period.

Increase in outsourcing activities involving the complex IP design and development that are not related to product differentiation is expected to favor market growth in the upcoming years. Globally, the market is predicted to generate massive revenue over next seven years, providing numerous opportunities for market players to invest for research and development in the semiconductor IP market.

Increase in the number of third party IP vendors coupled with rise in the amount of IP blockage licensing by market players are positively impacting market growth, in the recent years. Increasing demand for semiconductor IP cores from different vertical like networking topologies, telecommunication industry and consumer electronics is estimated to expand overall market reach. Semiconductor IP helps in saving design time and expenditure, thus increasing overall organizational productivity and profitability.

Semiconductor Intellectual Property or SIP is known as a recyclable logical unit, cell, or chip layout design and is considered as the intellectual property of one party. It is vital during the design and implementation of complex system ICs. Advantages of Semiconductor Intellectual Property include reduction of IC development costs, accelerates time-to-market, reduces time-to-volume and increases end-product value.

Consumer electronics is considered as one of the major application of the semiconductor IP. Rapid growth in the consumer electronics, particularly in the Asia Pacific and North America region is anticipated to drive market growth of semiconductor IP over the forecast period. Advent of smartphones and advancement in communication industry such as 5G are expected to boost market demand for consumer electronic, thus propelling expansion of semiconductor IP market over the forecast period.

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The market is broadly categorized into five major segments based on the product type such as verification IP, ASIC, memory IP, interface IP, and processor IP. The processor IP is considered as one of the fastest growing segment in the market with substantial revenue generation in the last few years. Growing popularity of the processor IP segment is attributed to the increasing adoption of microprocessor, microcontroller, digital signal processor, and graphics processing unit in electrical & electronic, and automotive sector.

In addition, increasing demand for processor IP from the telecom industry and automotive sector for 5G communication and in high-end cars are expected to fuel market growth of processor IP segment. The ASIC segment is has also witnessed substantial growth owing to the increasing adoption in advanced microcontroller and digital voice recorders.

The market is divided by region as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the rise in the implementation of latest technologies in semiconductor electronics, massive investment in research & development activities in the region, and existence of well-established industrial infrastructure.

Asia-Pacific region is predicted to hold major market share in the semiconductor IP market with massive growth in forecast period. Countries such as India, China and Japan are leading the Asia-Pacific market with presence of semiconductor intellectual property service providers, easy availability of skilled labor force, and significant investment by leading industry players considering potential growth opportunities in the region. The key players in the semiconductor IP market are Silicon Image, Inc., Rambus, Inc., Mentor Graphics Co., Imagination Technologies Group plc, CEVA Logistics Ltd., CAST, Inc., Cadence Design Systems, Inc., Atmel Co., Arm Holdings AG, Synopsy, Inc., and Altera Co.

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