Independent Logic IP Provider Market to Experience a 14.3% CAGR Between 2003 and 2008 Reports In-Stat/MDR

Business Wire, Oct 4, 2004

SCOTTSDALE, Ariz. -- According to In-Stat/MDR (http://www.instat.com), the independent Intellectual Property (IP) provider represents the functional design approach to the future, at both the IC and system level. And, with logic projected to account for about two out of every three dollars spent for the licensing of independent IP between 2003 and 2008, the independent logic IP provider market, specifically, will experience a 14.3% compound annual growth rate. However, while it will continue to grow in terms of revenue generated, logic will lose market share over the next five years to both the memory and analog segments.

"The independent IP provider market represents the foundation for all future integrated circuit designs, even finding use in standard products, such as DRAMs and flash memory," said Jerry Worchel, a principal analyst with In-Stat/MDR. "In addition, this market represents one of the most significant, exciting and rapidly changing segments in the entire semiconductor industry, and will drive future evolution and growth of the overall electronics industry." In the logic world, specifically, any new function or approach to a design solution that is offered, in whatever form, to the merchant market will ultimately wind up as an embeddable core, targeted at higher-level or complexity designs. And, it will not matter whether it is a single function or a combination of functions, such as a processor and cache memory. "So, we will continue to see an expansion in providers, along with their new IP solutions, across all the function plains, with each successive entry tightening their targeted application," said Worchel. The logic segment will continue to see new solutions, particularly with regard to the growing number of standards and protocols, emerge, along with combinations of various intellectual property functions, such as logic, memory and/or analog, to meet higher performance applications.

In-Stat/MDR has also found the following relative to the independent logic IP provider market:

--Major functions that fall into the logic category, relative to revenue generated, include microprocessors, DSP, and a host of interface, I/O and bus cores, with the processor being the largest, accounting for over one-third of all logic IP worldwide revenues. While the processor segment will remain the largest over the forecast period, it will not be the most dynamic in terms of growth. That title will go to embedded reconfigurable logic cores, such as the FPGA.

--From a licensing perspective, logic IP revenues will be generated, primarily, via an annual licensing fee, which is coupled with per-device royalty payments, closely followed by the royalty-only model.

--Geographically, licensing will remain dominated by companies based in the Americas.

--In this market, 5% of the providers accounting for nearly 50% of the total market's worldwide revenues, with well over 100 companies dividing up the remaining 50%.

--Of the companies participating in this market, the vast majority will remain relatively small, with approximately 15%-20% of the soliciting business only in their own backyards, or geographic regions to be more exact. By definition, this market will always be in a state of flux.

The report, "Independent IP Logic Market: The Designers Foundation, And User Survey" (#IN0401398DE), analyzes and forecasts key market indicators and trends for the independent logic IP provider market. The subjects included are: licensing revenues for independent IP providers, including issues and trends; analysis of the various licensing models, including the revenue splits between the various models; examination of hard- versus soft-core usage; major end-use markets to which IP is targeted; geographic revenue breakdown by major region; major vendor rankings for 2003, relative to 2002; and a partial listing of independent IP providers, including functional offerings, core type (hard/soft), and Web address. Also included in this report is a user (licensee) survey, which includes the major functions licensed, in total and by core type, licensing model used, and design tools used, along with other subjects and segmentations. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/Scatalogue.asp?id=19 or contact Courtney McEuen at 480-483-4454; cmceuen@reedbusiness.com. The report price is $3,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.