$2.9 Billion Semiconductor IP Industry Forecast for 2004

Egham, U.K–Oct. 23, 2000–The worldwide semiconductor intellectual property (IP) market, one of the fastest growing segments in the semiconductor industry, should reach $2.94 billion by 2004, forecasts Dataquest Inc., a unit of Gartner Group. Worldwide semiconductor IP revenue in 2000 is projected to peak at $620 million.

“IP is a key enabler of design reuse and is the only effective way of closing the ‘design gap.’ Without this technology, semiconductor vendors and OEMs will not be able to take advantage of today’s semiconductor manufacturing advances,” says Jim Tully, chief analyst for Dataquest’s worldwide semiconductor group. “Although the IP market is very new, it is now hard to imagine the semiconductor industry without ARM, MIPS, Rambus and some of the other prominent IP players.”

Dataquest analysts also report that, at this stage in the development of the IP market, many vendors are entering and leaving the business. New entrants such as design houses looking to capitalize on internal IP and steer the business into a more scalable market are expected to exit the market, according to the analysts, as they find the IP business to be very different from design services and beyond their current capabilities. ASIC vendors, ASSP vendors, or OEMs likely will acquire other IP companies, predict the analysts.


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