Licensing, Royalty and Service Revenues For 3rd Party SIP: A Market Analysis and Forecast for 2013

The 3rd Party Semiconductor Intellectual Property (SIP) market has seen great innovation in the products it offers to System-on-a-Chip (SoC) designers over the last ten years. If any market segment in the semiconductor industry typifies the intense evolutionary pressures that the entire electronics market has undergone, it is the 3rd Party SIP market.

Most of these evolutionary forces are driven by the need to integrate more functionality in fewer devices at the system level and in ever-smaller footprints. The primary method to accomplish this today is through the use of 3rd Party SIP. The SIP market has evolved to supply the solutions SoC designers require to craft their very innovative silicon products in response to ever-changing market requirements.

Rather than looking at the 3rd Party SIP market as a monolithic whole, tracking revenues by year, Semico Research has created this report to look at analyzing the SIP market by functional category and then sub-dividing these categories into revenues by quarter. Semico has arranged the SIP market by the following SIP types:

• CPU IP
• DSP IP
• Graphics IP
• Memory IP
• Analog IP
• Interface IP
• Interconnect IP
• Security IP
• Audio IP
• Chip Enhancement IP
• Logic IP

Each category consists of licensing revenues, royalty revenues and service revenues with actual revenues tracked from 1Q06 – 4Q12 and then a forecast of revenues from 1Q13 – 4Q17. In addition, based on other research Semico has conducted to gather data in the SoC design start landscape, three charts are included for each IP category that shows the following data:

• Average Licensing Revenues Per SoC Design ($K)
• Average Royalty Revenue Per SoC ($0.00)
• Average Service Revenues Per SoC Design ($K)

This report includes the IP market broken down by geographical region (Americas, Europe, Japan, Asia Pacific, and China) and provides a forecast for each region as well. The worldwide market for IP is forecast to be over $4 billion in 2013 and will double in size by 2017.

The forecasted worldwide IP market growth rate of 21.1% for 2013 will beat the 6% forecasted by Semico for the total semiconductor market. The CAGR % for the total Semiconductor market for the period 2013 – 2017 is only forecast to reach 5.3%, while the 3rd Party SIP market CAGR is forecast to be 19.3% - 3X that of the semiconductor market. By any measure, the SIP market continues to show impressive growth rates driven by the rise in SoCs targeted at mobile applications.

The amount of data contained in the report is so extensive that a single word document will not contain it all. Instead, a Word file and an Excel spreadsheet are combined together for delivery to customers, containing over 241 charts and over 139 tables. Licensing, Royalty and Service Revenues for 3rd Party SIP: Market Analysis and Forecast for 2013 is available for immediate delivery.