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Global Semiconductor IP Market Forecast to 2026: Expanding Telecom and Data Center and Automotive Verticals to Drive Growth

DUBLIN, March 09, 2022–(BUSINESS WIRE)–The “Semiconductor Intellectual Property (IP) Market with COVID-19 Impact Analysis by Design IP (Processor IP, Memory IP, Interface IP, Others IP), IP Source (Royalties, Licenses), IP Core (Hard IP, Soft IP), Vertical and Geography – Global Forecast to 2026” report has been added to from ResearchAndMarkets.com offer.

The size of the global semiconductor intellectual property market is expected to grow from USD 5.5 billion in 2021 to USD 7.2 billion by 2026, growing at a CAGR of 5.4%.

The market has promising growth potential owing to several factors including increasing adoption of semiconductor components, especially processor IPs, interface IP in consumer electronics verticals, automotive, telecommunications and data centers, which will drive demand for this market in the near future.

The major factor limiting the growth of the semiconductor IP market is the constant technological evolution in the semiconductor industry. With each leap, new technologies would enter the market and break the balance. The same is true for the integrated circuit industry, where process nodes play a vital role. Changes to the nodes of a semiconductor chip can change the design complexity, chip form factor, and design architecture of the IP core. The most common task in advanced SoC design is the efficient implementation of these SoC chips in advanced technologies, such as 20nm planar and FinFET processes. Adoption of advanced technology nodes increases design costs for IP providers, while payments for licensing IPs suitable for the new technology node may not match the increased expenditure. The overall cost of SoC designs, including silicon IP and software IP, has increased by approximately 40%, with a shift in node size from 32nm to 28nm, and is expected to increase by 30 % after switching to 22 nm. The overall cost of the SoC silicon IP design has increased by approximately 36%, with the 28nm node.

The market declined slightly in 2020, mainly due to the impact of COVID-19. Supply chains were disrupted in March and April 2020 due to lockdown imposed by various governments and labor shortages in these industries due to travel restrictions, which would affect the IP market for semiconductors. Although the market was impacted in 2020, it is expected to fully recover by mid-2022.

The IP royalty source segment is experiencing healthy growth owing to rapid technological changes that help manufacturers produce as many products as they want and pay a royalty only for those products. The rapid global deployment of 5G network by operators is also supporting the growth of the royalty source IP segment, as many base stations and wireless network equipment are based on different processor IP and interface IP. The growing penetration of 5G smartphones is one of the main factors behind the growing adoption of IP sources of royalties. Several countries have already invested in 5G technology to improve their digital infrastructure and stay competitive in the digital economy. These countries are expected to play a vital role in the growth of the royalty IP source market in various verticals, such as consumer electronics and telecommunications and data centers.

Market dynamics

Drivers

  • Advances in multi-core technology for vertical consumer electronics

  • Growing demand for modern SoC designs

  • Lower costs associated with chip design

  • Growing adoption of connected devices for everyday use

  • Increase in demand for electronics in healthcare and telecommunications sectors due to the COVID-19 crisis

Constraints

Opportunities

  • Extension of on-board DSP and programmable DSP IP segments

  • Growing Demand for Advanced Semiconductor Components in Automotive, Telecom, and Data Center Verticals

Challenges

Case studies

  • Synopsys offered its Core IP and Interface IP solutions to ARBE (Israel) for High Resolution Imaging Radar SOC

  • Blaize Inc (USA) used Verisilicon’s chip design expertise and IP offerings for new applications

  • Achronix Semiconductor used Designware Foundation IP and Synopsys Interface IP for its High Performance Computing Fpgas

  • Mentor Graphics used Openfive’s Ethernet-Pcs IP for its Veloce emulator with 3 different environment configurations

  • DSP Group (USA) selected Synopsys’ Designware Arc Em5D Processor IP for its high-efficiency signal processing and control capabilities

  • Myson Century (Taiwan) used Dcd’s Dp80390/Dp8051 IP core for performance sensitive applications

  • Wave Computing used Andes Technology’s Andes System Control Processor IP in its breakthrough DPU current generation design

  • Ensilica provided its ASIC design, software development, and PCB design for a safety-critical industrial controller with an on-chip high-current switch

  • Digital Core Design provided its IP solutions to Texas Advanced Optoelectronics Solutions Inc (us) to achieve performance efficiency in new project implementation

  • Ensilica provided complete SOC development of GNSS baseband processor with power management to its customer

Companies cited

  • Achronix Semiconductor

  • Alphawave IP

  • Analog bits

  • ARM

  • Arteris

  • Cadence

  • This will

  • Cobham Gaisler

  • dolphin design

  • Dream Chip Technologies

  • Memory

  • Eureka Technology

  • Faraday Technology

  • Imagination Technologies

  • Lattice Semiconductor

  • M31 Technology

  • openfive

  • RambUnited States

  • Renesas

  • Silvaco

  • OHS

  • Synopsis

  • Transpacket

  • Verisilicon

  • Xilinxa

For more information on this report visit https://www.researchandmarkets.com/r/dohz89

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