The Global Semiconductor IP Market was valued at USD 4321.3 million in 2020 and is expected to reach USD 6923.2 million by 2026, registering a CAGR of 7.4%, during the period of 2021-2026.
Companies Mentioned: Faraday Technology Corporation, Fujitsu Ltd, Mindtree Limited, ARM Ltd ( SoftBank ), Synopsys Inc., Cadence Design Systems Inc., CEVA Inc., Andes Technology Corporation, MediaTek Inc., Digital Media Professionals, Imagination Technologies Ltd, VeriSilicon Holdings Co., Ltd, Achronix Semiconductor Corporation, Rambus Incorporated,eMemory Technology Inc., Wave Computing, Inc.
Key Market Trends
Consumer Electronics Account for a Dominant Market Share
- The consumer electronics segment is the dominant segment and has witnessed a very high demand over the last few years. Semiconductor IPs are used in every consumer electronic products, such as smartphones, tablet, and other devices. Because of the strong consumer demand for better and more advanced smartphones and devices, the demand for semiconductor IPs has increased.
- The major driver of this market includes emerging consumer devices adoption across the world, demand for connected devices coupled with the demand for advance SOC designs. The emerging technologies like embedded and programmable DSP IPs are expected to further drive the market in the future.
- In a smartphone, the incorporation of semiconductor IPs makes the device more efficient, smaller, and lightweight as the System-on-Chip concept is implemented over here. The System-on-Chip concept combines all the major components like the memory unit, the processor unit, and others being stored on a silicon chip, enabling the device to be more power efficient and more effective to use.
- The demand for tablets has seen a slight decrease over the last few years, because of its bulkier size compared to smartphones. But regardless, it remains a major segment that makes use of semiconductor IPs.
- There are high costs associated with the technology. The cost of its adoption is high due to which it has hampered the growth of this market.
North America expected to have a Significant Market Share
- The United States is one of the major markets in the overall semiconductor market, from vendors and end-user perspectives. The growing need for intelligent command and control in many industries in the United States presents essential market opportunities for many semiconductor manufacturers. For instance, Hitachi Ltd announced the merger of Hitachi America subsidiaries, Hitachi Semiconductor (America) Inc. and Hitachi Micro Systems Inc., to create a unified organization focused on the North American region, particularly the United States.
- Most of the market vendors are expanding their presence in the region. Furthermore, many market vendors are US-based, which provides a competitive advantage to the regional market. The US government is also playing a significant role in developing the regional semiconductor business, which is also supporting the semiconductor silicon IP market.
- Semiconductor development has faced a gap in access to domestic sources of capital, especially in pre-seed, seed, and early-stage rounds and later stages across the country. This led to a significant percentage of foreign ownership across Canadian companies. At the same time, a lack of funding created an unfavorable environment for Canadian companies to exit too early.
- Moreover, Canadian graduates are among the best STEM talent globally by being sought after by global semiconductor companies for well-paying, high-skilled jobs. As per Statistics Canada, 25% of all post-secondary enrollment was in computer and electronics-related programs in 2019. With Canada having a rich pool of technology talent, the Council wants to keep its domestic talent within.