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As the semiconductor manufacturing grows globally, improvements in design must keep up: Report

As the semiconductor manufacturing grows globally, improvements in design must keep up: Report

As the semiconductor manufacturing grows globally, improvements in design must keep up: Report
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By Pihu Yadav  Oct 12, 2022 3:42:58 PM IST (Published)

According to Persistence Market Research, the region with the quickest rate of growth for semiconductor intellectual property is South Asia & Pacific. During the projection period, the market is anticipated to expand by 2.5 times.

The semiconductor intellectual property (IP) market was worth $5.2 billion in 2020 and is set to rise to $8.6 billion by 2025, according to a Counterpoint Research study. 

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“The global semiconductor IP market is nearing an inflection point as the ratio of semiconductor content within a solution is accelerating, with a need for diverse and open approach across the compute, memory, security and other architectures," research analyst William Li said in the report.
This demand is being mainly driven by the growth of advanced applications such as AI-enabled smart devices, 5G communications, High-Performance Computing (HPC) and autonomous cars. The semiconductor content growth will drive product value growth in the IC (Integrated Circuit) design and IP licensing industry.
The conversation around semiconductor IP needs to be had alongside the one around the manufacturing of silicon. Michael Hurlston, CEO, Synaptics, spoke to CNBC-TV18 about both being equally important — the manufacturing and the design of the chip.
“In semiconductors, the primary value is in the intellectual property that underlies the designs.  Replicating the intellectual property of any company would take uncountable man years, and, in many cases, is fundamentally impossible. For a country to create an orthogonal, different set of intellectual property would certainly take a generation, but in so doing, would set it up for centuries of success,” he added.
While semiconductor manufacturing is also quite difficult, there are paths to replicate the capability, and sustainability is far more fleeting. If the profit margin is a proxy for value, there is no doubt that the underlying design is better. 
According to Persistence Market Research, the region with the quickest rate of growth for semiconductor intellectual property is South Asia & Pacific. During the projection period, the market is anticipated to expand by 2.5 times.
The need for electrical and semiconductor components is growing in the automotive, telecom, and data centre industries due to their reliance on electronic equipment, which has prompted the development of a new chip production design solution in the area.
"Only a few companies are capable of designing and manufacturing the most advanced chips with node sizes of 14 nanometres (nm) and below because of the skills and large investment required for design, R&D, scaling, and other activities. Meanwhile, demand for these chips is soaring. In some major market segments, including artificial intelligence and machine learning, chips under 14 nm are critical because they combine strong performance with lower power consumption," reads a McKinsey report on semiconductor design and manufacturing.
Governments help their local semiconductor industry in a number of ways, including by enacting laws that encourage expansion, providing funding for research, and fostering an atmosphere that attracts top people. Recently, governments have also shown a stronger interest in assisting the domestic semiconductor industry, with some even introducing additional subsidies. Companies that make semiconductors can assist their firms to maintain healthy growth and seize new possibilities by keeping an eye on regulation changes and swiftly adjusting as necessary.
To safeguard their intellectual property, semiconductor companies must keep an eye on the patent landscape. Since many new participants in other industries, such as automotive businesses, hyperscalers, smartphone companies, and startups, have begun to create and patent their own chips, there is a greater need than ever for this protection. Since the payback time is lengthy, semiconductor companies may struggle to maintain innovation in the absence of a solid IP policy.
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