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Semiconductor IP Market Expected to Approach $9.0B by 2023, says Semico Research

The evolution of the 3rd Party Semiconductor Intellectual Property (SIP) market was driven by the needs of System-on-a-Chip (SoC) designers to find and acquire logic functions as IP blocks to match the functions they needed for their SoC solutions. This resulted in the SIP market taking very specific directions to deliver these needs. There has been consolidation in the market, but new companies continue to emerge, bringing new ideas and products to designers. Today, we have a market populated by IP vendors that are producing and delivering quality products that exhibit high functionality and performance. SoC designers have taken advantage of these improvements and continue to support these vendors, driving the IP market to ever-higher revenues and importance in the SoC design landscape. Semico Research's new report, Licensing, Royalty and Service Revenues for 3rd Party SIP: A Market Analysis and Forecast for 2019, (SC105-19) forecasts the worldwide IP market willapproach $9.0B by 2023.
"The SIP market has seen great innovation in the products it offers to SoC designers over the last fifteen 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," says Rich Wawrzyniak, Principal Analyst for ASIC & SoC at Semico Research Corp."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 3rd Party SIP."
Key findings of the report include:

  • The Americas IP market will increase over the forecast period to $2.0B by 2023.
  • While starting from a small base, eFPGA IP will have the highest growth rate with a CAGR of 34.0% through 2023.
  • The market for Security IP continues to grow in importance and necessity as wireless devices and IoT permeate our society and require increased protection from viruses and denial-of-service attacks.
  • The CPU IP market is the largest IP category today and will remain so for the foreseeable future, accounting for 32.1% of total market revenues by 2023.
  • The IP created for AI-focused SoCs will reach $638.9M by 2023, a 32.0% CAGR.

The Licensing, Royalty and Service Revenues for 3rd Party SIP: Market Analysis and Forecast for 2019 (SC105-19) report also tracks revenues by quarter. Semico has created this report to analyze the SIP market by functional category and then sub-divide these categories into revenues for Licensing, Royalties and Services. Semico has arranged the SIP market by the following SIP types:

SIP Types Profiled and Analyzed

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

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)

This report includes the SIP market broken down by geographical region (Americas, Europe, Japan, Asia Pacific, and China) and provides a forecast for each region for Licensing, Royalty and Service revenues.
The data contained in the report includes both a Word file and an Excel spreadsheet, containing over 269 charts and 153 tables in 130 pages.

For pricing and additional information, please contact:
Rick Vogelei
Business Development
Phone: 602-997-0337
About Semico
Semico is a semiconductor marketing & consulting research company located in Phoenix, Arizona.  We offer custom consulting, portfolio packages, individual market research studies and premier industry conferences.