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18 December 2018Patents

Semiconductor IP market to reach $6.5bn by 2024: report

The global semiconductor IP market will be worth $6.5 billion by 2024, according to a new report.

The  report, “Semiconductor Intellectual Property Market”, was published yesterday, December 17.

According to the report, published on www.marketsandmarkets.com, the market is projected to grow from $4.9 billion in 2018, at a compound annual growth rate (CAGR) of 4.78%.

It claimed that, when split into three categories, the market for memory IP is expected to grow at a higher CAGR than processor IP and interface IP. This is due to the benefits of memory technology, such as high switching speed, power efficiency, and the suitability to integrate with consumer devices.

Meanwhile, processor IP occupies the largest portion of the semiconductor market. Processor IP includes microprocessor units, microcontroller units, and digital signal processors.

Semiconductor IP related to the automotive industry will increase at a higher CAGR than any other vertical, the report predicted.

This is because approximately 100 processors are used in a high-end vehicle, and the automotive industry is also likely to enjoy advanced versions of processors in the near future. For example, advancements in enhanced signal processing algorithms, driver interfaces, and emission control are all advancing areas.

In terms of geographical growth, the report suggested that the semiconductor IP market in Asia-Pacific (APAC) will grow at the highest CAGR between now and 2024.

Asia is an attractive location due to its political stability, open financial system (with no limits on repatriation of profits), and solid telecoms and transport facilities, the report said. Also, the Chinese government has introduced increased funding to promote applications of semiconductors.

The report added that demand for consumer electronics is higher in APAC than in the US and Europe.

In terms of the those operating in the semiconductor IP sphere, chip companies in the UK and US seem to be leading the way.

ARM Holdings (UK), Synopsys (US), Cadence (US), Imagination Technologies (UK), and Lattice Semiconductor (US) are named as key players in the area, although one Taiwanese company (eMemory) also made the cut.

Overall, the major factors driving the increased value of the semiconductor IP market include advancement in multicore technology in the consumer electronics sector, and a higher demand for modern system on a chip (SoC) designs.

Multicore refers to multiple central processing units working together on the same chip, while SoC is a circuit which integrates all components of a computer (or other system).

Semiconductor companies have been involved in much litigation over their technologies.  Qualcomm,  Seoul Semiconductor, and  Power Integrations are just some of the businesses which have recently been in litigation over their chips.

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