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The Healthcare Market is not Just a Mobile Semiconductor Fad
Semiconductor Intellectual Property (SIP) is facilitating tremendous growth in the semiconductor industry. Jim Feldhan, President of Semico Research, delivered the kickoff address of the Semico IP Impact Conference, attended by over 150 people.
One of Feldhan’s key messages was that portability will continue to reshape technology and our lives. Today, eight percent of resources are directed towards creating content while 91% are about using content. This is especially prevalent in the mobile market, which surpassed the traditional computing market in 2008. Tablets will outsell notebooks by the end of this year. And, by 2017, Semico is projecting that the tablet and notebook form factors will become indistinguishable.
Another message was how the residential market will be impacted by the Internet of Things. Today the average home has over 70 appliances and devices, which could be internet-connected in the future. This will create an $18 billion market for internet-connected appliances in 2017 which will contain over $160 billion in semiconductors in those appliances.
The healthcare market is not just a mobile semiconductor fad. Feldhan quoted Semico’s recent Mobile Healthcare End Market report saying that 860 million people are chronically ill. He also said that by 2050 over 21% of the world’s population will be over 65 years old, which provides a huge growing connected market that is documented in another new report, Aging in Place: The Internet of Things for the Golden Years.
Semico’s IPI (Inflection Point Indicator) forecasts a strong 2013 for the overall semiconductor industry with most of the growth coming from the memory segment. “Next year will be even better with overall growth of 8-10%,” predicted Feldhan, “as the logic category improves in 2014.”
The SIP market, which has enabled the growth of these end markets and the overall semiconductor industry, is increasing at a CAGR of over 19%. Royalty revenues exceed that of licensing revenues and are detailed in Licensing, Royalty & Service Revenues for 3rd Party SIP: A Market Analysis and Forecast. Another trend that Feldhan quoted from that report is that, while CPUs will remain the largest SIP segment through 2017, a shift will occur as memory and graphics surpass interface SIP for the second and third largest segments.
Finally, Feldhan pointed to the SIP Subsystem market as another bright spot in the industry with a 30% CAGR from 2012-2016. An excerpt from The IP Subsystem Market Evolution Continues & Momentum Builds report showed that computing and communication are the largest SIP segments, and, by 2017, subsystems at the 28nm node will represent 41% of all subsystems.
For more details or information about Jim Feldhan’s presentation, please contact Susan Cadel at susanc@semico.com.
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