SOFTWARE: Independent Logic IP Provider Market to Boom
With logic projected to account for about two out of every three dollars spent for the licensing of independent IP between 2003 and 2008, the independent logic IP provider market, specifically, will experience a 14.3% compound annual growth
rate. However, while it will continue to grow in terms of revenue generated, logic will lose market share over the next 5 years to both the memory and analog segments.
The independent IP provider market represents the foundation for all future integrated circuit designs, even finding use in standard products, such as DRAMs and flash memory. In addition, this market represents one of the most significant, exciting and rapidly changing segments in the entire semiconductor industry, and will drive future evolution and growth of the overall electronics industry. In the logic world, specifically, any new function or approach to a design solution that is offered, in whatever form, to the merchant market will
ultimately wind-up as an embeddable core, targeted at higher-level or complexity designs. And, it will not matter whether it is a single
function or a combination of functions, such as a processor and cache memory. So, we will continue to see an expansion in providers, along
with their new IP solutions, across all the function plains, with each successive entry tightening their targeted application. The logic segment will continue to see new solutions, particularly with regard to
the growing number of standards and protocols, emerge, along with combinations of various intellectual property functions, such as logic,
memory and/or analog, to meet higher performance applications.
In-Stat/MDR has also found the following relative to the independent
logic IP provider market:
* Major functions that fall into the logic category, relative to revenue generated, include microprocessors, DSP, and a host of
interface, I/O and bus cores, with the processor being the largest, accounting for over one-third of all logic IP worldwide revenues. While
the processor segment will remain the largest over the forecast period, it will not be the most dynamic in terms of growth. That title will go
to embedded reconfigurable logic cores, such as the FPGA.
* From a licensing perspective, logic IP revenues will be generated, primarily, via an annual licensing fee, which is coupled with
per device royalty payments, closely followed by the royalty-only model.
* Geographically, licensing will remain dominated by companies
based in The Americas.
* In this market, 5% of the providers accounting for nearly 50% of the total market’s worldwide revenues, with well over 100 Of the
companies participating in this market, the vast majority will remain relatively small, with approximately 15%-20% of the soliciting business
only in their own backyards, or geographic regions to be more exact. By definition, this market will always be in a state of flux.
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