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Semiconductor Intellectual Property (IP) Market - By IP Type (Processor IP, Memory IP, Interface IP, Others), By IP Core (Soft IP, Hard IP), By IP Source (Licensing, Royalty), By End-User & Forecast, 2024 – 2032

  • Report ID: GMI8597
  • Published Date: Mar 2024
  • Report Format: PDF

Semiconductor IP Market Size

Semiconductor IP Market was valued at over USD 7 billion in 2023 and is anticipated to grow at a CAGR of over 8.5% between 2024 and 2032. With increasing demand for AI based applications such as automotive, consumer electronics, and IoT, semiconductor companies are developing customized IP cores. System-on-Chip (SoCs) designs are adopting dedicated AI processing units as well as AI specific hardware blocks.
 

Semiconductor Intellectual Property (IP) Market

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For instance, in October 2023, Alphawave Semi announced to make custom solutions based on Arm Neoverse Compute Subsystems (CSS) widely available across the technology infrastructure. The advancement paves the way for a new generation of System-on-Chip (SoCs) tailored for hyperscale and data infrastructure customers.
 

The rising trend of Industrial Internet of Things (IIoT) is driving growth in the Semiconductor Intellectual Property (IP) market, with semiconductor IP providers developing reliable, scalable, and secure IIoT solutions that address the evolving needs of industrial customers and drive digital transformation in the industrial sector. For instance, in October 2023, POLYN Technology was granted its first U.S. patent. The patent focuses on specific applications of POLYN’s VibroSense technology segment, applicable not only to tires, but to the wider Industrial IoT segment.
 

Managing the licensing agreement, royalties and intellectual property rights is complex and labor-intensive for IP semiconductor providers. Tracking usage and ensuring compliance with contractual obligations requires a sophisticated royalty management system and legal expertise.
 

Semiconductor IP Market Trends

The industry has witnessed a rising emphasis on risk-free design and developing a safer block for various sectors such as automotive, and telecommunication. Semiconductor companies are collaborating to increase efficiency and optimize battery-based and mobile devices. For instance, in March 2023, Synopsys, Inc. announced an expanded agreement with Samsung Foundry to develop a broad portfolio of IP to reduce design risk for automotive, mobile, High-Performance Computing (HPC) and multi-die designs. This agreement expands Synopsys' collaboration with Samsung to enhance the Synopsys IP offering for Samsung's advanced 8LPU, SF5, SF4 and SF3 processes and includes Foundation IP, USB, PCI Express, 112G Ethernet, UCIe, LPDDR, DDR, MIPI, etc.
 

The growing focus towards security and reliability is gaining traction, and organizations are prioritizing security measures to address cyber threats and security breaches. Vulnerabilities related to semiconductor IP products can lead to significant risk to businesses and customers. For instance, in July 2023, Rambus Inc., announced the first in a family of quantum safe security IP products with its next-generation Root of Trust for data center and communications security. Quantum computers will be able to rapidly break current asymmetric encryption. The Rambus Root of Trust IP offers customers a complete Post Quantum Cryptography (PQC) hardware security solution that protects valuable data center and AI/ML assets and systems.
 

Semiconductor IP Market Analysis

Semiconductor IP Market Size, By IP Source, 2022-2032 (USD Billion)
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Based on the IP source, the market is segmented into licensing and royalty. In 2023, the licensing segment dominated the market with a share of over 60%.
 

  • The licensing segment leverages collaborations and partnerships between IP providers, semiconductor companies, and system integrators. IP providers collaborate with foundries to optimize IP solutions for specific domains, ensuring compatibility, performance, as well as reliability. Additionally, ecosystem partnerships enable semiconductor companies to access dynamic support, services, and ecosystem integration resources to facilitate the adoption and deployment of licensed semiconductor IP solutions. For instance, in April 2023, Rambus Inc. announced it had extended its comprehensive patent license agreement with SK hynix for an additional ten years. The extension maintains similar financial terms and provides SK hynix with broad access to the full Rambus patent portfolio through mid-2034.

 

Semiconductor IP Market Share, By End-User, 2023
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Based on the end-user, the market is divided into consumer electronics, IT & Telecommunication, automotive, and others. Consumer electronics is expected to be the fastest growing and is anticipated to register a CAGR of over 9.5% during the forecast period.
 

  • With the increasing use of electronic components by the consumers, the demand for semiconductor IP providers is on the rise. The shift towards automotive design and focus on safety and security is expected to drive growth. In March 2024, Arteris, Inc. announced the immediate availability of the latest release of Ncore cache coherent network-on-chip (NoC) IP. The latest release of Ncore works with multiple processor IPs, including RISC-V and the next-generation Armv9 Cortex processor IP. Ncore boasts multi-protocol support, allowing seamless integration of IPs connected to the same NoC fabric.

 

China Semiconductor IP Market Size, 2022-2032, (USD Billion)
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Asia Pacific dominated the semiconductor IP market and is anticipated to register a CAGR of over 9.9% from 2024 and 2032. With the rising adoption of cutting-edge technologies and a robust regulatory framework, governments in the region aim to facilitate the development of Integrated Circuits (ICs) and semiconductor devices. For instance, Synopsys, Inc. announced that the VMM verification methodology, described in the ARM-Synopsys Verification Methodology Manual (VMM), has been adopted by major electronics companies in China for developing advanced verification environments. The VMM methodology is used by hundreds of System-on- Chip (SoC) and silicon IP verification teams around the world to speed development of powerful SystemVerilog-based verification environments and to help achieve measurable functional coverage goals in less time with less effort.
 

Semiconductor IP Market Share

ARM Limited is a prominent company known for its contribution to semiconductor intellectual property (IP). It designs and licenses technology used in the development of semiconductor chips, particularly in the field of microprocessors and system-on-chip (SoC) designs. ARM's IP portfolio includes various processor architectures, such as ARM Cortex CPUs and Mali GPUs, as well as related technologies like interconnect, memory controllers, and security components.
 

Synopsys, Inc. is a prominent company in the field of semiconductor design and software solutions for electronic design automation (EDA). Synopsys invests heavily in research and development to continually expand its portfolio of IP cores, ensuring they meet the latest industry standards and technological advancements. This allows semiconductor companies to focus on their core competencies while leveraging Synopsys' expertise in IP design and verification.
 

Semiconductor IP Market Companies

Major players operating in the market are:

  • ARM Limited
  • Synopsys, Inc
  • ARTERIS, INC
  • Cadence Design Systems, Inc.
  • Fujitsu
  • Imagination Technologies
  • Lattice Semiconductor
  • Nvidia Corporation
  • Qualcomm Technologies, Inc.
  • Rambus.com
  • Renesas Electronics Corporation.
  • Silvaco Group, Inc.
     

Semiconductor IP Industry News

  • In July 2023, Cadence Design Systems, Inc. and Rambus Inc. announced that they had entered into a definitive agreement for Cadence to acquire the Rambus SerDes and memory interface PHY IP business. Rambus will retain its digital IP business, including memory and interface controllers and security IP. The expected technology asset purchase also brings Cadence experienced PHY engineering teams in the United States, India and Canada, further expanding Cadence’s talent base.
     
  • In April 2023, Alphawave Semi announced its first connectivity silicon platform on TSMC’s 3nm process with its ZeusCORE Extra-Long-Reach (XLR) 1-112Gbps NRZ/PAM4 serialiser-deserialiser (“SerDes”) IP. It Showcased its silicon platform with 112G ethernet and PCIe 6.0 IP on TSMC 3nm process at the TSMC North America Symposium in Santa Clara, CA.
     

The semiconductor intellectual property (IP) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By IP Type

  • Processor IP
  • Memory IP
  • Interface IP
  • Others

Market, By IP Core

  • Soft IP
  • Hard IP

Market, By IP Source

  • Licensing
  • Royalty

Market, By End-User

  • Consumer Electronics
  • IT & Telecommunication
  • Automotive
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • ANZ
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA

 

Authors: Suraj Gujar, Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

Semiconductor IP industry size surpassed USD 7 billion in 2023 and is anticipated to expand at over 8.5 % CAGR between 2024 and 2032 owing to the increasing demand in AI-based applications
Semiconductor intellectual property market from the consumer electronics end-use segment is expected to grow significantly at over 9.5% CAGR from 2024-2032 owing to the increasing use of electronic components by consumers and the shift towards automotive design and focus on safety and security.
Asia Pacific semiconductor IP market size is projected to expand at over 9.9% CAGR between 2024 and 2032 owing to the rising adoption of cutting-edge technologies and a robust regulatory framework, in the region
Some of the major semiconductor IP companies are ARM Limited, Synopsys, Inc, ARTERIS, INC, Cadence Design Systems, Inc., Fujitsu, Imagination Technologies, Lattice Semiconductor, Nvidia Corporation, Qualcomm Technologies, Inc., Rambus.com, Renesas Electronics Corporation., and Silvaco Group, Inc.

Semiconductor IP Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 12
  • Tables & Figures: 302
  • Countries covered: 21
  • Pages: 220
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