Semiconductor Intellectual Property (IP) has existed since the advent of the semiconductor industry. Semiconductor IP refers to the reusable designs or blocks that can be licensed or used by the owners themselves or can be sold to others. The global Semiconductor Intellectual Property (IP) Market was valued $XX billion in 2018, & is projected to grow with a CAGR of 4.89% during the forecast period, to reach an expected value of $7.63 billion by the year 2027. The base year considered for the market study is 2018 & the forecasted period is between 2019 and 2027.

Following factors drive the global semiconductor intellectual property market:

• Large-scale utilization of System-On-Chip (SOCs)
• Semiconductor IP aiding in minimizing the gap between design complexity & productivity
• The stupendous growth in demand for consumer electronic devices
• Booming Internet of Things (IoT) industry

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SOCs have been the primary growth driver for the overall semiconductor IP market. The use of SOCs has grown substantially over the last five years. In general, an SOC design needs to ensure maximum performance with minimum power consumption. The SOC designers may incorporate new connectivity parameters, keeping with the trend of miniaturization of semiconductor devices. The demand for multi-core technologies and embedded graphics are the major factors driving the SOC market. Furthermore, there is an exponential growth in smart devices that use Long Term Evolution (LTE) connectivity instead of just Wi-Fi. This has compelled semiconductor manufacturers to produce high-performance SOCs for communication devices. Thus, SOC designers must use high-quality third-party IP blocks to reduce the risks in design integration and also ensure timely product delivery.

In 2018, Processor IP captured more than 60% of the market share. The demand for high processing capacity in electronic products and consumer electronic devices is the main driving factor behind its most significant market share. Electronic OEMs have to ensure speed and smooth functionality of their devices, resulting in more processors being integrated into chips. The growing need for power-efficient devices along with multi-functionalities will result in the integration of multiple processors into a system or chip. This is because processors are usually considered to be the brains of an embedded system. The growth of the processor IP is driven by the large-scale use of multi-core processors, especially in mobile devices. Use of multi-core processors will prevent the end-user device from overheating and ensure high performance. It will also allow the easy integration of new applications that require high processing power such as 4K video coding, high-resolution image processing, and 3D printing.

On the flip side, factors such as high costs associated with semiconductor IP, complexities in integration & verification of semiconductor IP, difficulties in supplying a commercially useful configurable IP product, and increased instances of IP reuse are responsible for delaying the market growth. The design and developmental costs of semiconductor IP are getting increasingly complex and expensive. This is because semiconductor IP vendors need to invest additional time and money to develop complex algorithms for addressing the growing needs of customers. Also, heavy investments into R&D by semiconductor IP vendors are resulting in a high price per license and high royalty charges. Apart from the above-mentioned high cost of R&D investment, there are other cost-related factors involved in semiconductor IP core development process.

The report on global semiconductor Intellectual Property (IP) includes segmentation on the basis of IP type, revenue source, and End-user.

Market by IP Type:

• Processor IP
• Interface IP
• Memory IP
• Other IPs

Market by Revenue Source:

• Licensing
• Royalty
• Services

Market by End User:

• Consumer Electronics
• Telecommunications
• Automotive
• Aerospace
• Healthcare
• Agriculture
• Other End Users

Geographically, the global Semiconductor Intellectual Property (IP) market, has been segmented into four major regions, which includes:

• North America
• Europe
• Asia Pacific
• Rest of World (Latin America, Middle East & Africa)

Asia Pacific dominated the regional paradigm of the semiconductor IP market by accounting for a revenue share of around 53% in 2018. In addition, it is the fastest-growing region due to the strong policies from the governments of South Korea, Japan, China, and India in order to become self-reliant in the semiconductor industry. This has promoted the use of third-party IP in the Asia Pacific. The growth of the semiconductor IP market in the region correlates with the end-user growth in the region, as it is the largest market for smartphones, and is witnessing rising investments in renewable and automotive (EVs specifically), among various others. The Asia Pacific region is a hub for electronics manufacturing. Major countries in the region such as China, Japan, South Korea, and Taiwan are known for their electronic device manufacturing capabilities. For instance, the South Korean government in 2018 announced a $1.34 billion investment for the next ten years to support the development of next-generation semiconductor technology, in turn, fuelling the demand for semiconductor IP.

The Semiconductor Intellectual Property (SIP) market is studied based on revenue source, IP type, and end-user. The market by IP type is categorized into Interface IP, Processor IP, Memory IP, and others. Whereas, the market by revenue source is classified into royalty, licensing, and services. On the other hand, market by End-User is divided into agriculture, aerospace, telecommunications, consumer electronics, automotive, healthcare, and others.

Several key players profiled in the market are:

• Arm Holdings Plc
• CEVA, Inc.
• Cadence Design Systems, Inc.
• Imagination Technologies Group Plc
• eMemory Technology Inc.
• Sonics, Inc.
• Other companies

Market share analysis, along with company profiles, is discussed in detail in the report. Most of the companies look for strategies such as merger & acquisition, partnership, contracts, agreements, or new product launch, to gain a competitive edge over each other. For instance, in July, 2019, Hillcrest Laboratories, Inc., a well-known supplier of software and components for sensor processing in consumer and IoT devices was acquired by CEVA, Inc. In June 2019, Telechips awarded a contract to Imagination Technologies to use its PowerVR Series9XTP in its In-Vehicle Infotainment (IVI) and vehicle cockpit solutions. In April, 2018, eMemory was able to successfully verify its secure eNVM IP for TSMC’s advanced processes.

Key findings of the global semiconductor IP market are:

• Growing demand for high-performance ICs will drive the requirement for new semiconductor IP being registered as well as the use of current IP blocks, during the forecast period.
• The number of chips on a wafer increase along with the design complexity of the chips is expected to increase the requirement for complex IP blocks to meet such requirements.
• Governmental initiatives and funding will drive R&D to develop new and advanced technologies, generating the demand for semiconductor IP.
• The IoT market scope is going to be the top-priority area to look into by the EDA and semiconductor IP vendors.