Semiconductor Intellectual Property (IP) Market Analysis

Semiconductor IP Market Analysis

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Based on the IP source, the market is segmented into licensing and royalty. In 2023, the licensing segment dominated the market with a share of over 60%.
 

• The licensing segment leverages collaborations and partnerships between IP providers, semiconductor companies, and system integrators. IP providers collaborate with foundries to optimize IP solutions for specific domains, ensuring compatibility, performance, as well as reliability. Additionally, ecosystem partnerships enable semiconductor companies to access dynamic support, services, and ecosystem integration resources to facilitate the adoption and deployment of licensed semiconductor IP solutions. For instance, in April 2023, Rambus Inc. announced it had extended its comprehensive patent license agreement with SK hynix for an additional ten years. The extension maintains similar financial terms and provides SK hynix with broad access to the full Rambus patent portfolio through mid-2034.
   

Based on the end-user, the market is divided into consumer electronics, IT & Telecommunication, automotive, and others. Consumer electronics is expected to be the fastest growing and is anticipated to register a CAGR of over 9.5% during the forecast period.
 

• With the increasing use of electronic components by the consumers, the demand for semiconductor IP providers is on the rise. The shift towards automotive design and focus on safety and security is expected to drive growth. In March 2024, Arteris, Inc. announced the immediate availability of the latest release of Ncore cache coherent network-on-chip (NoC) IP. The latest release of Ncore works with multiple processor IPs, including RISC-V and the next-generation Armv9 Cortex processor IP. Ncore boasts multi-protocol support, allowing seamless integration of IPs connected to the same NoC fabric.
   

Asia Pacific dominated the semiconductor IP market and is anticipated to register a CAGR of over 9.9% from 2024 and 2032. With the rising adoption of cutting-edge technologies and a robust regulatory framework, governments in the region aim to facilitate the development of Integrated Circuits (ICs) and semiconductor devices. For instance, Synopsys, Inc. announced that the VMM verification methodology, described in the ARM-Synopsys Verification Methodology Manual (VMM), has been adopted by major electronics companies in China for developing advanced verification environments. The VMM methodology is used by hundreds of System-on- Chip (SoC) and silicon IP verification teams around the world to speed development of powerful SystemVerilog-based verification environments and to help achieve measurable functional coverage goals in less time with less effort.