Semiconductor IP on a growth curve

Semiconductor IP on a growth curve
By Nicolas Mokhoff, EE Times
May 5, 2003 (2:46 p.m. EST)
URL: http://www.eetimes.com/story/OEG20030505S0056

MANHASSET, N.Y. — Revenue from independent intellectual property providers will grow to more than $1.5 billion by 2007, according to a report by In-Stat/MDR.

The Scottsdale, Ariz., market research firm characterizes independent IP providers as companies whose primary business model is based on developing and either selling or licensing pre-defined, fully-characterized and functional semiconductor cores.

"The independent intellectual property provider market represents one of the most significant, exciting and rapidly changing segments in the entire semiconductor history for future evolution and growth of the overall electronics industry," said Jerry Worchel, a senior analyst who complied the report.

The report said that IP revenues will be generated primarily by annual licensing along with with royalties and one-time fees royalties. Nearly two out of every three dollars of independent IP provider revenues will come from these two models , the report said.

The report also found that among logic, memory and analog, logic will occupy the highest market share--an average market share of more than 70 percent over the next five years.