“Unlocking Opportunities in the Semiconductor IP Market Growth^J Segmentation^J and Regional Analysis 2024–2032 ”.pdf

Semiconductor IP refers to pre-designed and pre-verified functional blocks, circuits, or designs that semiconductor companies or chip designers license to use in their own integrated circuits (ICs) or system-on-chip (SoC) designs. These IP blocks help accelerate chip development, reduce costs, and minimize design errors.
Instead of designing every component from scratch, companies can reuse these IP cores for processors, memory controllers, interfaces, and other functional units.
According to Credence Research the Semiconductor Intellectual Property (IP) Market was valued at USD 7,490 million in 2024. It is expected to grow to USD 14,195.5 million by 2032, expanding at a CAGR of 8.32% during the forecast period.

1. “Unlocking Opportunities in the Semiconductor
IP Market: Growth, Segmentation, and Regional
Analysis 2024–2032 ”

Semiconductor IP refers to pre-designed and pre-verified functional blocks,
circuits, or designs that semiconductor companies or chip designers license to use in
their own integrated circuits (ICs) or system-on-chip (SoC) designs. These IP blocks
help accelerate chip development, reduce costs, and minimize design errors.
Instead of designing every component from scratch, companies can reuse these IP
cores for processors, memory controllers, interfaces, and other functional units.
According to Credence Research the Semiconductor Intellectual Property (IP)
Market was valued at USD 7,490 million in 2024. It is expected to grow to USD
14,195.5 million by 2032, expanding at a CAGR of 8.32% during the forecast period.
Source: https://www.credenceresearch.com/report/semiconductor-intellectual-
property-market
The Semiconductor Intellectual Property (IP) market is the foundational bedrock of the
modern electronics industry. As we advance through the 2024–2032 period, this market
is poised for robust growth, projected at a Compound Annual Growth Rate (CAGR) of
approximately 6-8%, potentially reaching a value of over $10 billion. This growth is not
merely incremental; it is being unlocked by fundamental shifts in technology namely the
AI revolution, the proliferation of heterogeneous computing, and the relentless demand
for efficiency. Companies that can navigate the segments of processor IP, interface IP,
and the emerging dominance of the Asia-Pacific region will be best positioned to
capitalize on the immense opportunities ahead.
Key Growth Drivers (Unlocking the Demand)
The growth of the Semiconductor IP market is fueled by powerful, interconnected
macro-trends:
1. The Artificial Intelligence (AI) and Machine Learning (ML) Boom:
o Specialized Cores: The one-size-fits-all CPU is inadequate for modern AI
workloads. This drives massive demand for specialized IP cores like NPUs
(Neural Processing Units), TPUs (Tensor Processing Units), and AI
accelerators. These cores are designed from the ground up for matrix

2. multiplication and parallel processing, making them essential for
everything from data centre chips to smartphone SoCs.
o Edge AI: The deployment of AI in consumer devices, automotive sensors,
and IoT gadgets requires low-power, high-performance IP that can
process data locally, reducing latency and cloud dependency.
2. The "More-than-Moore" Paradigm and Heterogeneous Integration:
o As scaling transistors alone becomes prohibitively expensive and
complex, the industry focuses on "More-than-Moore" integrating multiple
specialized chiplets into a single package.
o This makes Semiconductor IP critical not just as soft cores, but as
physical "Chiplet IP." Companies can now license and integrate pre-
designed, pre-verified chiplets (e.g., an I/O chiplet, a memory controller
chiplet), drastically reducing design time and cost. This opens a new,
high-value revenue stream for IP vendors.
3. Proliferation of Connected Devices (IoT):
o The Internet of Things requires billions of chips that are cost-effective,
low-power, and application-specific. Semiconductor IP allows for the
rapid creation of these custom SoCs (System-on-Chip) without the need
to design every component from scratch. IP for low-power
microcontrollers (MCUs), wireless connectivity (Bluetooth, Wi-Fi), and
sensor interfaces is in high demand.
4. Automotive Digitalization (The "Computer-on-Wheels"):
o Modern vehicles are becoming data centers on wheels. Advanced Driver-
Assistance Systems (ADAS), infotainment, and vehicle-to-everything
(V2X) communication require incredibly complex and reliable SoCs.
o This creates a premium market for high-performance compute IP
(CPU/GPU), high-speed interface IP (Ethernet, PCIe), and functional
safety (FuSa) certified IP that meets stringent automotive reliability
standards like ISO 26262.
5. Complexity and Cost of Advanced Node Design:
o Designing a chip at 5nm, 3nm, and below costs hundreds of millions of
dollars. It is economically unfeasible for most companies to design every
block internally. Licensing proven IP from specialists is a strategic
necessity to manage risk, cost, and time-to-market.

3. Market Segmentation (Where the Opportunities
Lie)
The market can be segmented by form, architecture, and IP type, each with distinct
dynamics.
1. By Form Factor:
• Soft IP: Delivered as synthesizable RTL (Register Transfer Level). Offers the most
flexibility but carries more integration risk. Opportunity: High growth in
customizable AI/ML accelerators and application-specific modifications.
• Hard IP: Delivered as a physically designed, layout-ready block. Less flexible but
offers predictable performance, power, and area. Opportunity: Critical for high-
speed analog/mixed-signal IP (e.g., SerDes, Memory PHYs) and Chiplet IP.
• Firm IP: A middle ground, partially configured. Opportunity: Balances
predictability and flexibility for standard interfaces.
2. By Architecture/Design Type:
• Processor IP: The largest and most dominant segment.
o CPU IP: The backbone of every system. Dominated by Arm, but with rising
competition from RISC-V.
o GPU IP: Critical for graphics, AI, and parallel computing. Key players:
Imagination Technologies, Arm.
o NPU/AI Accelerator IP: The fastest-growing sub-segment. Specialists
like Cadence (Tensilica), CEVA, and Synopsys (ARC) are key.
• Interface IP: The second-largest and high-growth segment. Enables data
movement between chips and peripherals.
o High-Speed SerDes: For data centers (PCIe, CXL) and networking
(Ethernet). A battleground for leaders like Synopsys and Cadence.
o Physical Layer IP (PHY): For DDR memory, USB, MIPI (for smartphone
displays/cameras).
• Memory IP: Includes memory controllers (DDR, GDDR, HBM) and compilers.
Essential for achieving peak system performance.
• Analog & Mixed-Signal IP: Data converters (ADCs/DACs), power management
(PMIC), and clocking IP. Crucial for connecting the digital world to the real world.
3. By End-User Application:

4. • Consumer Electronics: (Smartphones, Tablets, TVs) - Largest volume driver.
Demands a mix of high-performance and ultra-low-power IP.
• Automotive: Premium segment demanding reliability, performance, and FuSa
compliance.
• Industrial: Requires robust, long-lifecycle IP for automation, medical devices,
and aerospace.
• Data Centre & Networking: Pushes the limits of performance with the highest-
speed processor and interface IP.
Regional Analysis (The Geographic Hotspots)
1. Asia-Pacific (APAC): The Undisputed Leader and Growth Engine
• Market Share: Largest and fastest-growing region, accounting for over 40% of
the global market.
• Key Drivers:
o Manufacturing Hub: Home to the world's largest semiconductor
foundries (TSMC, Samsung) and a massive electronics manufacturing
ecosystem.
o Vibrant Design Ecosystem: A dense concentration of fabless
semiconductor companies (e.g., MediaTek, Unison) and system OEMs
(e.g., Xiaomi, OPPO, Huawei) in China, Taiwan, and South Korea that rely
heavily on licensed IP.
o Government Initiatives: Policies like "Made in China 2025" and
incentives in India and Japan are fueling domestic chip design, directly
boosting IP demand.
• Opportunity: The rise of RISC-V in China as a strategic alternative, and the
demand for IP tailored for mid-range and budget consumer electronics.
2. North America: The Innovation and R&D Hub
• Market Share: The second-largest market, characterized by high-value IP.
• Key Drivers:
o Concentration of IP Leaders: Home to the "Big Three" (Arm, Synopsys,
Cadence) and numerous innovative startups.
o Leading-edge Design: Houses the most advanced fabless companies
(e.g., Apple, Qualcomm, Nvidia, AMD) and IDMs (e.g., Intel) who are the
first adopters of IP for cutting-edge nodes (3nm, 2nm).

5. o Data Centre & AI Focus: The epicentre of AI innovation and cloud
computing, driving demand for the most advanced processor and
interface IP.
• Opportunity: Leadership in defining standards for Chiplet interoperability (e.g.,
UCIe) and providing the foundational IP for AI and HPC.
3. Europe: The Specialist in Automotive and Industrial
• Market Share: A mature and stable market with distinct strengths.
• Key Drivers:
o Automotive Powerhouse: Home to leading automotive OEMs and Tier-1
suppliers (e.g., Bosch, Continental, STMicroelectronics). This creates a
premium market for automotive-grade, FuSa-compliant IP.
o Industrial & IoT Expertise: Strong presence in industrial automation,
medical technology, and aerospace, demanding reliable and secure IP.
• Opportunity: Dominance in providing the complete IP solution for the software-
defined vehicle and industrial IoT applications.
4. Rest of the World (RoW):
• Includes Latin America and Middle East & Africa. A smaller but growing market,
primarily driven by the adoption of consumer electronics and local government
initiatives to build tech hubs.
Conclusion: The Strategic Imperative
The period from 2024 to 2032 will be defined by specialization, integration, and
strategic partnerships. The opportunities are vast:
• For IP Vendors: The winners will be those who provide not just IP blocks,
but complete platform solutions integrating processors, interfaces, and
software tools and who lead in Chiplet IP and AI-specialized cores.
• For Chip Designers: Leveraging third-party IP is no longer a convenience but
a strategic necessity to manage complexity, accelerate innovation, and control
costs.
The key to unlocking growth in the Semiconductor IP market lies in a deep
understanding of these segment dynamics and regional drivers, allowing companies to
align their R&D and go-to-market strategies with the unstoppable trends shaping the
future of technology.

6. Source: https://www.credenceresearch.com/report/semiconductor-intellectual-
property-market