Why IP Market Consolidation Is Like a Sports Metaphor

By EETimes

March 7, 2014

Why do semiconductor companies and system houses acquire IP suppliers or smaller semiconductor companies? For the answer, let's recall a certain recent football championship where the winning team had both a powerful offensive and defensive game -- for the Seattle Seahawks, it was vitally important to have a winning strategy "on both sides of the ball."

This dual strategy translates nicely to the ferocious and unforgiving competition among the giants of semiconductor IP consumption -- such as Apple, Google, Microsoft, Samsung, and others. At stake are huge markets for autos, cellphones, digital TVs, game platforms, and the emerging Internet of Things. These companies are striving to gain competitive advantage in technology, manufacturing, market strategy, and patents.

To prevail, these semiconductor IP consumers must -- like the Seahawks -- develop a dual strategy. They must continue to aggressively defend their current markets and platforms. They also have to diligently pursue a stronger offense by enhancing and differentiating their product offerings through IP acquisition.

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