2023 Sees Continued Growth in Semiconductor IP Market

The semiconductor industry witnessed a decline in global chip sales, leading to a 6 percent drop in IP royalties. However, this decrease was offset by a significant increase in licensing revenue, which surged by 14 percent, according to Esteve. The annual Design IP Report for 2024 was released by IPnest in April, highlighting a positive growth trend in design IP. Following growth rates of 20.9 percent in 2022 and 20.4 percent in 2021, the industry continued to show resilience and adaptability.

One of the key drivers of design IP growth was the wired interface segment, which saw substantial expansion, reaching a value of US$2 billion in 2023. This growth propelled Alphawave to the fourth position among IP providers in 2023, surpassing Imagination. Wired interface IP accounted for a significant portion of Synopsys' revenue, contributing to its market share increase as the second-ranked provider in the industry.

Global semiconductor design IP revenues for the top ten companies in 2023 and 2022 are illustrated in millions of dollars, as reported by IPnest in April 2024. Despite challenges in the smartphone sector, ARM maintained its position as the leading IP provider by leveraging remarkable growth in licensing revenues, which surged by 28.6 percent year-over-year. This growth was attributed to ARM's expansion into high-performance computing, AI applications, and automotive sectors.

The Design IP market has demonstrated a compound annual growth rate (CAGR) of 10.8 percent from 2016 to 2023. The wired interface segment's market share increased from 18 percent in 2017 to 28 percent in 2023, while processor IP's share declined from 58 to 47 percent during the same period. In contrast, the physical and miscellaneous digital sectors remained relatively stable, indicating a shifting landscape within the industry.

For further inquiries or information, please contact: eric.esteve@ip-nest.com. The semiconductor design IP market continues to evolve and adapt to changing demands, with companies like ARM leading the way in innovation and market expansion. As the industry navigates through challenges and opportunities, the focus remains on driving growth and technological advancements to meet the needs of a rapidly evolving digital landscape.