The semiconductor IP market, used for building large and complex ICs required in today’s electronic devices is a highly concentrated market, with only small chunk of leading semiconductor manufacturers, foundries and players accounting for a hefty share of total semiconductor IP market. It is expected that the market will become even more intense in the near future with big players in the market acquiring smaller semiconductor IP market participants, and progression in corporate restructuring of business. Therefore, to sustain and grow in the industry, companies will have to obtain or increase their orders for customers doing large volume production. This would also enable a growth in the overall semiconductor IP market.
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The semiconductor IP market is going through tremendous instability thereby plunging the CAPEX spending, due to persistent inventory adjustments in the Chinese smartphone industry. However, a remarkable growth has been witnessed in the automotive industry’s semiconductor demand amid the progression of advances in automotive electronics. Furthermore, dynamic rise for demand for semiconductor in IT & Telecomm industry continued, especially for processor IP, triggering memory semiconductor IP manufacturers to actively invest in expanding production capacity thereby bringing the positive outlook for the further years in the semiconductor IP market.
The semiconductor IP market segmentation is done on the basis of type, source, and industry vertical. The semiconductor IP market has been segmented on the basis of type into processor SIP, interface SIP, physical SIP, analog SIP, and Others. Further, the semiconductor IP market has been segmented on the basis of source into licensing and royalty. The source segment represents the bifurcation of the total semiconductor IP market in terms of revenue generations by either means. The semiconductor IPs have applications in a plethora of consumer electronic devices and various other industry verticals. Accordingly, the semiconductor IP market has also been segmented on the basis of industry vertical that includes telecom, automotive, industrial, electronics, medical, and others. On the basis of geography, the semiconductor IP market is analyzed into North America, Europe, Asia- Pacific (APAC), Middle East & Africa (MEA) and South America (SAM).
APAC is expected to be the fastest growing region in the semiconductor IP market. The major reason for this is the huge electronics and semiconductor hub in China coupled with the large population density of the region. Also China accounts for the largest shipments for semiconductors across the world, the new market initiatives and strategic partnerships are expected to continue during the forecast period, contributing to high growth of Semiconductor IP market in the region. Some of the important players in the Semiconductor IP market include ARM Holdings plc, Cadence Design Systems, Inc., CEVA Inc., Imagination Technologies Group plc, Synopsys Inc., and VeriSilicon Holdings Co., Ltd. Also, eMemory Technology Inc., Imagination Technologies Group plc, Sonics Inc., Lattice Semiconductor Corporation, and Rambus Inc. are other key companies in the semiconductor IP market.
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