Global Semiconductor (Silicon) Intellectual Property (SIP) Market 2020-2027 - Nanoelectronics Accelerate Advancements in Semiconductor Design, Offering Opportunities for SIP Market

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Mar 26, 2021, 08:30 ET

DUBLIN, March 26, 2021 /PRNewswire/ -- The "Semiconductor (Silicon) Intellectual Property (SIP) - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

With Innovation Being the Biggest Loser Amid the COVID-19 Crisis, Semiconductor Intellectual Property (SIP) Market Plummets by -8.6%

The global market for Semiconductor Intellectual Property (SIP) is expected to plummet by -8.6% in the year 2020 and thereafter recover and grow to reach US$ 7.8 billion by the year 2027, trailing a post COVID-19 CAGR of 6.2% over the analysis period 2020 through 2027.

Semiconductor IP (SIP) refers to reusable design aspects including chip layout, and cell among other components used in manufacturing advanced Integrated Circuits (IC). IP rights are generally held by a company with patent over a specific design for the chip. The patent holder licenses its technology to companies engaged in the manufacture of the specific chip type. Companies engaged in providing IP licensing are referred to as chipless semiconductor companies.

The increasing complexity of chips driven by technology advances is regarded to make new chip manufacturing extremely time consuming for a semiconductor manufacturer. Increasing shift towards smart and connected devices along with the growing emphasis on miniaturization trend has led to advances in component designs, which are generally patented inventions. Even during the pre-COVID-19 period, IC design productivity failed to keep pace with Moore's Law marking the emergence of a design gap.

The industry is currently striving to improve performance of traditional silicon-based semiconductor ICs, while simultaneously decreasing consumption of power, size and cost of transistors. Implementing of advanced semiconductor process nodes of sizes below 20nm (nano-meter), however, requires high investments owing to the increasing cost of fab. As a result, research on nodes of 20nm and below is dominated by established companies with significant resources and scalability required for development.

The transition to mass producing such components entails the need for IP partnership among semiconductor companies and technology developers. ICs (integrated circuits) available today use millions of transistors to enable the integration of numerous functions, requiring the use of several patented inventions. The demands adequate valuation of IP for integrating the price into the cost of devices using such technologies.

However, the cost of IP has a low target price for consumer devices, while the number of functions embedded adds to the pressure on license fees and royalty rates. Licensing of intellectual property has been a prevailing practice in the semiconductor industry which encompasses licensing of technology, process, and/or patent, along with design IP.

The trend is primarily driven by the increasing complexity of chip development caused by the myriad inputs required in developing a chip for general or specific purpose. Licensing of IP also reduces the capacity gaps in manufacturing; expediting the time-to-market for such components. Therefore semiconductor manufacturers opt to license technologies of existing designs which can be modified to build new chips.

Combining of IP blocks allows the creation of ASICs (application specific integrated circuits), SoCs (system-on-chips), as well as ASSPs (Application specific standard products), which allow production of chips used in automobiles, mobile devices, televisions and music players, among several others. SIP remains critical for designing complex system ICs & for accelerating time-to-market, reducing time-to-volume & increasing end-product value.

COVID-19 has reduced consumer demand for electronics and has halted all industrial investments in non-essential electronics technology. The electronics industry is a complex assembly sector and over the decades, the push for cost reduction, performance optimization, faster time-to-market, speed of innovation, do more with less principle and an increasingly narrower window of opportunity have encouraged modularity of the value chain.

The current pandemic has exposed the risk of heavy reliance on China for electronic intermediaries. Outbreak of the virus in the country, lockdowns & travel restrictions imposed, closure of non-essential manufacturing plants, trade bans, restrictions on movement of goods, have together disrupted the global supply chain leaving electronics manufacturing struggling to cope with raw material shortages. Electronics supply chain already in state of flux in the pre-pandemic period by the U.S. and China trade and tariff war has been pushed into crisis with little preparation at the start of the pandemic in January 2020.

With most electronic raw material supply dependent on Southeast Asian countries and China, over 75% of companies witnessed shipment delays which in the month of April rose to 3 to 5 weeks. The overall velocity of the value chain to perform and fulfil orders has reduced significantly. In addition, the pandemic has disrupted supply chains causing massive damage for manufacturing companies reliant on China for supplies. These supply chain disruptions will step up the pressure to decouple from China.

Rethinking supply chains will spur the movement of production out of China, including for electronics. Consumer electronics manufacturing, followed closely by automotive and industrial electronics remain the worst impacted. With companies cancelling and delaying modernization plans and with IT budgets slashed, industrial electronics is also feeling the pain of the general slowdown.

With most electronic companies expected to witness decline in sales and profitability, the semiconductor industry also remains impacted and likely to face short-term financial hardships. The global market for semiconductor IP against this backdrop is expected to decline by -8.6 in 2020.

Slammed with poor business climate and dwindling new orders, semiconductor industry is the midst of a painful slump. With innovation index of semiconductor and electronic product companies plummeting, electronics design productivity gap is increasing.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

Impact of Covid-19 and a Looming Global Recession
Falling Consumer Confidence Impacts Sales of Automotive and Consumer Electronics
COVID-19 Pandemic Storm Warrants New Strategies to Help Semiconductor Leaders Secure New Lease of Life
Semiconductor Trends for Specific End-Use Categories
Survival Strategy Adopted by Companies to Overcome the Pandemic Shock
An Introduction to Semiconductor Intellectual Property (IP)
Classification of Semiconductor IP by Form Factor, Type and Design
Key End-Use Markets for Semiconductor IP
Semiconductor Intellectual Property (IP) Market: A Prelude
Semiconductor IP Business Models
The Role of Foundries in IP Environment
International IP Protection Laws: An Overview
Outsourcing of Specialized Functions Set to Alter Semiconductor Industry Landscape
System-on-A-Chip (SoC): A Dynamic Technology in Semiconductor IP
The Technology Roadmap
Advancements in SoCs Spur Intellectual Property Market
Anticipated Long Term Gains for End-Use Industries & Technological Advances Create Hotbed for Growth of Semiconductor IP Market
Processor IP & Consumer Electronics: Cash Cows of Global Semiconductor IP Market
Prominent Trends and Market Drivers Shaping Semiconductor IP Market
Asia-Pacific: The Linchpin for Growth
Competitive Scenario
The Semiconductor Industry Value Chain
ARM: The Leading Semiconductor IP Provider
Semiconductor IP Vendors Target M&A Activity & Innovations to Corner Market
Recent Market Activity
Select Global Brands
Global Competitor Market Shares

2. FOCUS ON SELECT PLAYERS (Total 71 Featured):

Achronix Semiconductor
Arm Holdings
Cadence Design Systems, Inc.
CAST, Inc.
CEVA, Inc.
Cobham Gaisler AB
CORTUS
Digital Blocks, Inc.
Dolphin Integration
Dream Chip Technologies GmbH
eMemory Technology Inc.
EnSilica Limited
Eureka Technology, Inc.
Faraday Technology Corporation
Imagination Technologies Limited
Intel Corporation
Lattice Semiconductor
OpenFive
Rambus Inc.
Renesas Electronics Corporation
Semiconductor Manufacturing International Corp. (SMIC)
Synopsys, Inc.
Transpacket AS
VeriSilicon Holdings Co., Ltd
Wave Computing, Inc
Xilinx, Inc.

3. MARKET TRENDS & DRIVERS

COVID-19 Crisis Creates Ripples in Dwindling Global Semiconductor Market
Unprecedented Fallout of COVID-19 Calls for Changes in Production & Operations in Semiconductor Industry
Digital Transformation Drive Augurs Well for Future Growth of Semiconductor IP Market
Technology Trends Drive Semiconductor IP Market
Nanoelectronics Accelerate Advancements in Semiconductor Design, Offering Opportunities for SIP Market
The 3D Age and the Need for 3D-IC Integration to Increase Design Complexity: Business Case for SIP
Moore's Law Spurs Miniaturization Trend
Evolution of SSD Storage Prompts Memory IP
Rise of Quadcore and Octacore Processors Augurs Well for Processor IP
Miniaturization Trend Requires Electronic Chip Designers to Overcome SiP Issues
Select Technology Innovations
Growing Functionalities of Chips Drive Silicon IP Integration
Pre-manufactured ASICs and Flash- and SRAM-Series of FPGAs
Wearable Technology to Promote Processor IP
IoT Ecosystem to Promote Advances in Semiconductors: High-Growth Area for IP Licensing
Rising Demand for Smart/Connected Devices Prompts the Need for Smart Sensors: Potential Opportunity for SIP
Verification 3.0: Addresses SoC Verification Challenges Promotes Verification IP
Rising Design Costs Spur 3rd Party Semiconductor IP
Shift to Digital Power Management ICs Augurs Well
Proposed Transition to 450mm Silicon Wafers to Benefit Market
Consumer Electronics: Major End-Use Market
A Return to Economic Normalcy Will Reignite Growth Drivers in the Consumer Electronics End-Use Sector
Deceleration in Smartphone Market Induces Slowdown in Demand
Relevance of Advanced Semiconductors in Automotive Electronics Augurs Well
Rising Industrial Automation to Drive Demand for IP
Expanding Role of Electronics in the Healthcare Sector Bodes Well
Expanding Applications of SoCs to Drive Future Growth
Time-to-Market Pressure to Support Adoption of Semiconductor IP Licensing
Cloud Adoption Fuels Cloud Equipment: An Opportunity Indicator for Semiconductor IP
Issues with IP Compatibility Raise Concerns
IP Detection Poses a Challenge
Lack of Standardization in IP Cores

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

IV. COMPETITION

Total Companies Profiled: 150

For more information about this report visit https://www.researchandmarkets.com/r/ib9868

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