Global Semiconductor (Silicon) Intellectual Property (SIP) Market 2020-2027 - Nanoelectronics Accelerate Advancements in Semiconductor Design, Offering Opportunities for SIP Market
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%
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.
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.
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:
2. FOCUS ON SELECT PLAYERS (Total 71 Featured):
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
For more information about this report visit https://www.researchandmarkets.com/r/ib9868
Research and Markets
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