Complex semiconductor IP is an Indian opportunity

Christian Heidarson, Gartner Group
(08/17/2006 6:41 AM EDT), EE Times
 
In 2005, the market for semiconductor intellectual property (IP) grew by 16 per cent to reach $1.4 billion. While patent-related IP revenues accounted for a large part of this growth, 2006 is turning out to be a strong year also for non-patent revenues. The IP market has consolidated over the last three years as traditional product categories are maturing and penetration of digital IP sockets is reaching saturation.
Looking forward, however, the demand for IP is evolving — mirroring the increasing complexity of the system-on-chip (SoC) devices that the IP is used in. The evolving IP industry will present new opportunities for the Indian semiconductor design services industry.

Semiconductor IP is crucial for the continuing progression of Moore's Law, especially for the design of more integrated SoCs. To keep up with Moore's Law, SoC designers require larger, more complex IP blocks. At present, these complex IP blocks tend to be designed by semiconductor vendors' in-house teams, though they will often be made up of simpler IP blocks acquired from the third-party market. But as semiconductor vendors shift their attention to the system-level challenges of designs with very large gate counts, they will also need third-party solutions for the more complex IP blocks.
 

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