Independent IP Providers to Reap Benefits as They Revolutionize the Semiconductor Industry, Says In-Stat/MDR

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Scottsdale, Ariz. —The need for independent Intellectual Property (IP) providers is more important today than ever before, according to In-Stat/MDR.

The high-tech market research firm reports that worldwide revenue for independent IP providers (companies whose primary business model is based upon the development and sale and/or licensing of pre-defined, fully characterized, semiconductor functional cores), in 2002, increased by 8.4 percent from 2001's $698.4 million. By the end of 2007, revenues for these companies are forecast to reach $1.5 billion.

In-Stat/MDR has also found that:

  • Of the three intellectual property functional categories; logic, memory and analog, the largest, on a revenue basis, will be logic, with an average market share of 70 percent plus, 2002 to 2007.
  • From a licensing perspective, IP revenues will be generated, primarily, via annual licensing, coupled with royalty, followed closely by the one-time fee/royalty model. These two models, combined, will account for nearly two out of every three dollars of independent IP provider revenues.
  • End-use licensing of IP is under the control of the communications sector, as is the case for most semiconductor markets these days, with an average market share of about 56 percent plus from 2002 to 2007.
  • Geographically, licensing of IP will remain dominated by The Americas, with Europe and Japan, respectively, at a somewhat distant second and third, with only a marginal difference between the two.



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