SIP Market Mysteries Explored and Myths Exploded

Phoenix, Arizona July 18, 2012 - 2011 was a very good year for the 3rd Party SIP market which had revenues increase 18.9% over 2010. Yet only looking at SIP annual revenues obscures several very interesting trends in both the SIP and the broader System-on-a-Chip (SoC) markets.

For this reason, Semico Research Corp. has launched a new report: 3rd Party SIP Market Analysis and Forecast by Quarter(SC104-12), which looks at the SIP market by quarter from 1Q06-4Q16 while breaking the SIP market into ten separate IP Categories:

IP Categories Analyzed and Profiled
• CPU Cores
• Embedded Memory
• Video and Graphics
• Security
• Chip Enhancement
• DSP Cores
• Analog
• Logic
• Interface
• Interconnect
In addition, Semico has provided data and analysis of the trends prevalent for each of the above IP categories in areas such as the average Licensing revenues per SoC design, the average Royalties per SoC part and the average Service revenues per SoC design.

One of the little discussed areas of IP Licensing is the fact that companies that are doing multiple SoC designs license the IP they use several blocks at a time and amortize the costs over several designs. This results in lower total licensing costs per design - counter to the prevailing wisdom that IP costs are skyrocketing out of sight.

Another myth exploded in the report is that Analog IP is not a sustainable business model. Analog IP is expected to grow at a 2011 - 2016 CAGR of 24.8% with Licensing revenues reaching a CAGR of 25.1%. Analog IP at 40nm and below is very difficult to create and maintain, which means both Licensing and Services fees will increase over the forecast period.

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 220 charts and over 130 tables.

Contact us today to order this report or learn more about our SoC portfolio: Jim Feldhan, jfeldhan@semico.com, 602-997-0337.