Well, we have answered the first question about market growth, now how about market maturation?
Market maturation can be viewed in two ways:
Semico does not think anyone would say the 3rd Party IP market resembles the steel industry in any way today. There is tremendous innovation evident in the market today and it is occurring at multiple companies across multiple product lines. This is not a picture of a market that has lost its dynamism. If anything the 3rd Party IP market exhibits the opposite characteristics of increasing innovation and new product creation. Just witness the introduction of IP Subsystems as an example of innovation and new product ideas. These types of new products allow the customer base to explore new applications and to aid in the potential creation of new markets, aiding both groups in the long run.
If market maturation is occurring anywhere it is in the adoption of better business practices across multiple companies and a focusing in on what customers expect from their vendors in the areas of quality, service and product deliverables. In Semico’s estimation this is a good trend and not a bad one at all.