Licensing, Royalty and Service Revenues For 3rd Party SIP: A Market Analysis and Forecast for 2019

The 3^rd 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 using 3^rd 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 3^rd Party SIP market as a monolithic segment, tracking revenues by year, Semico Research Corp. has created this report to analyze the SIP market by functional category and then sub-divide these categories into revenues by quarter. This quarterly data is contained in the accompanying spreadsheet (SIP 2019 Market Data by Quarter SC105-19 Final) and provides more granularity. This report provides the analysis of the data and some additional data on design starts, SIP costs and SoC unit shipments. Semico has arranged the SIP market in this report by the following SIP types:
 

 
Each category consists of licensing revenues, royalty revenues and service revenues with actual revenues tracked from 1Q06 – 2Q19 and then a forecast of revenues from 3Q19 – 4Q23.  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 show the following data:

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