Thursday, October 2, 2014

Semiconductor IP Market (Integrated Circuit IP, SOC IP): Does India Stand Anywhere?

Semiconductor IP: The semiconductor IP has emerged as a business model for the various semiconductor industries where these companies permits the customers to use their technology as intellectual property. Generally, the IP cores are developed by the third parties and then licensed to the semiconductor manufacturers.

The semiconductor IP market is completely different from the semiconductor manufacturing industries and it is growing twice faster than the overall semiconductor industry. This is due to the outsourcing of the core IP designs to the vendors by the semiconductor industries.

U.S. is the highest IP developer nation in the world and is currently leading the semiconductor IP in terms of vendors and semiconductor IPs. The idea of developing the IP from the vendors was also originated from USA only. Apart from USA, there are some other nations where the IP vendors are increasing rapidly i.e. China, Taiwan, Germany, France, Netherlands and many more.
MNCs like Synopsys and ARM (the semiconductor giants) dominates over the semiconductor market with a hold of 43.2% and 13.9% shares of their design IP revenue, respectively.

Nations with the least population growth are involved in the growing semiconductor market whereas, the largest democracy of the world i.e. India contributes only 2.4% to the global semiconductor market. What could be the reason behind it?

Though Indians acquire most critical and innovative ideas to develop and invent an extraordinary technology, still I was unable to find the name of any promising Indian semiconductor industry on Google.

Is the largest democracy in the world democratic by thought? Or they are compelled to think what the existing semiconductor players want them to think?

There is no doubt that the amount paid by the semiconductor companies to the designers and developers is more than their expectations and this is why the most innovative minds of the India are consolidated by the Europeans and Americans.

Earning is not a rocket science if you are an IP developer, but to give a name is really a thing that would matter for you as well as your nation. 

Author-Aman Jangra
(Manager at Silicon Mentor)

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