Semiconductor IP market kept growing in 2023
Despite a shrinking chip market, revenues from design IP grew to US$7.04 billion in 2023, an increase of 5.8 percent, according to Eric Esteve of analyst IPnest.
The fall in global chip sales was reflected in a fall in IP royalties by 6 percent but these was more than compensated for by increased licensing revenue, up by 14 percent, Esteve said. IPnest has released its annual Design IP Report in April 2024. The annual growth in design IP came after growth of 20.9 percent in 2022 and 20.4 percent in 2021.
By main categories the growth was:
- Processor (CPU, DSP, GPU, ISP): 3.4 percent
- Wired interface: 16 percent
- Physical (SRAM flash memory compilers, analog-mixed signal wireless i/f) -1.4 percent
- Digital (system security, miscellaneous digital: 4 percent
The wired interface is driving design IP growth and reached US$2 billion in 2023 and this is reflected by the move of Alphawave up to fourth ranked IP provider in 2023, overtaking Imagination. Wired interface IP is also some 71 percent of Synopsys’ revenue and helped it gain market share as second-ranked provider.
Global semiconductor design IP by top ten company revenues 2023 and 2022 (millions of dollars). Source: IPnest April 2024.
ARM continued as the top-ranked IP provider as it compensated for declining royalty revenues dues to smartphone weakness by remarkable growth in its license revenues, up 28.6 percent year-over-year. This is attributable to licensing into high-performance computing and AI applications and automotive.
Top five design IP companies ranked by licensing revenue market share 2023. Source: IPnest, April 2024.
The Design IP market has enjoyed 10.8 percent CAGR over the period 2016 to 2023. The wired interface has gone from 18 percent of the market in 2017 to 28 percent of the market in 2023 at the expense of processor IP which has declined from 58 to 47 percent of the same period. Meanwhile the physical and miscellaneous digital sectors have been stable.
For more information contact: eric.esteve@ip-nest.com
Related links and articles:
Arm grows market share in bouyant IP market
ARM returns to losing IP market share
Faraday licenses its first ARM automotive core
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