A semiconductor intellectual property core, also known as an IP core, enables engineers and developers to build new chips. IP cores are regarded as the building blocks of application specific integrated circuit (ASIC) chip designs. As the semiconductor industry has grown significantly within the past few years, challenges such as having to create initial chip designs in a short period of time have become apparent. It is in this context that IP cores have emerged as an integral part of the semiconductor industry. The semiconductor IP core market, which stood at approximately $3 billion in 2015, is poised to record a CAGR of more than 15% by 2020.
What makes IP cores so critical to the ICT industry?
The ICT industry is highly dependent on IP cores; some of the key reasons for this dependency as identified by analysts at Technavio include the following:
Boost in production of mobile devices
It goes without saying that the growth of the consumer electronics industry and the semiconductor industry are interrelated. With increase in demand for mobile devices, OEMs are looking for ways in which they can differentiate their products and thereby obtain a larger share of the consumer electronics market. This requires designing devices that integrate advanced technologies. It is in this context that IP cores become incredibly critical; an optimally designed IP core enhances the speed of a device and reduces power links between application-based processors, wire-free interface ICs, mobile peripherals and baseband modems. This is why IP cores have emerged as a necessity for mobile devices.
Use of multi-core technologies along with emergence of complex chip designs
As chip designs are becoming increasingly complex, it is essential that semiconductor chip manufacturers create innovative and complex IC architecture and designs. This is being achieved through processor upgrades, boosts in clock frequency levels, and adoption of multi-core design architecture. IP cores are capable of providing reliable designs that offer great performance in a cost-effective manner – something that electronic device manufacturers are actively aiming for.
Higher investments and greater involvement of government
The importance of IP cores, along with complex and expensive developmental costs, have encouraged large investments in research and development activities, so that complex algorithms can be developed to meet the growing demands of consumers. Additionally, several governments have established programs and policies that encourage and benefit semiconductor manufacturers. In countries like the US and the UK, governments have created a base for IP start-ups while continuing to promote established companies like Synopsys and ARM. Developing economies like South Korea, India and China are also witnessing aggressive initiatives being undertaken by their governments.
These developments are reflective of the fact that the IP core market has caught the attention of both public and private stakeholders, and that the ICT industry is incomplete without IP cores.
Looking to obtain data and predictive analysis on the semiconductor IP market?
