Semiconductor Intellectual Property: Changes in Market Direction

Phoenix, Arizona July 6, 2009 - The 3rd Party Semiconductor Intellectual Property (SIP) market was not immune to the market forces unleashed in 2008 but managed to achieve a 4.9% growth. While this growth rate was much lower than historical trends, it is Semico’s view that the IP market will continue to outperform other semiconductor markets, and remain in positive territory with 2.9% growth in 2009. The positive growth is due to the trend for more and more IP to be incorporated into SoCs and other device types that use IP. The SIP market will return to stronger growth in 2010 and continue to gather momentum from 2011 – 2013, even though the growth rates will still be somewhat below historical norms. These market trends are analyzed in Semico’s report “Semiconductor Intellectual Property: Changes in Market Direction.”

“The forecast for the IP market is still optimistic and we do not see any negative growth for the IP market during the entire forecast period,” states Rich Wawrzyniak, Semico Senior Analyst. “Historically, the industry innovates its way out of a downturn. Semico’s assumption is that successful companies will roll out new products to stimulate the market. That means new designs and more use of IP.”

Semico’s report examines how the SIP market is undergoing a round of consolidation with the number of companies shrinking approximately 50% by 2008 compared to 2000. Wawrzyniak verifies, “This is not a sign of a weakening market but rather a sign of the market sorting itself out with strong contenders consolidating their positions.” Semico projects this market to continue to grow, surpassing $4B by 2013, with a CAGR exceeding 10%.

Semico’s report tracks the SIP market by the commonly accepted labels such as ‘Star’ and ‘Commodity’ SIP. These categories are further segmented by more descriptive labels such as ‘Critical IP’, ‘Purpose-Built IP’ and ‘Chip Enhancement IP’. The report also tracks the SIP market by function such as Memory, CPU, DSP, Analog, Logic, Interface, Interconnect and Chip Enhancement IP.

Learn more about the SIP market dynamics in Semico’s “Semiconductor Intellectual Property: Changes in Market Direction.” This report is available for immediate delivery. To receive a copy of the Table of Contents, including a list of tables and figures, or to purchase this report for $3,995, please contact Susan Cadel at 607-368-7600 or at susanc@semico.com and reference "Semiconductor Intellectual Property: Changes in Market Direction”, report number SC103-09.

About Semico

Technology manufacturers, vendors, service providers, technology professionals and market specialists worldwide utilize Semico’s experienced staff and in-depth research to support critical business, product and technology decisions. Semico’s vision is derived from both a deep technology understanding and comprehensive research, which examines each segment of the supply chain for each market. Regular and ongoing end-user demand and primary research surveys are the foundation of the analysis, enabling Semico to provide insightful market analysis and guidance on future market opportunities.

Semico is a strategic partner with leading technology companies, with access to an extensive worldwide electronic network, technology databases and expert personnel. Semico was founded in 1994 by a group of semiconductor industry experts and has offices in Phoenix, California, New York, Japan and Taiwan.