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Analysis: Chip Design Outsourcers Must Embrace IP |
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Written by SVTechie
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Monday, 20 March 2006 |
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Original analysis is presented by Jim Tully, Gartner Group and can be viewed at http://www.eetimes.com/showArticle.jhtml?articleID=180207843. Excerpts from the article...
The economics of the industry
changed in 2001, probably permanently. The main driver today is cost. Vendors
will now primarily outsource design activities as a part of a cost reduction
program.
The most valuable SoC markets are
cell phone handsets, storage (particularly hard disk drives), games consoles
and flat panel TVs. These are the largest applications in a SoC market that
will reach $55 billion in 2006.
Design numbers peaked at 20,000 in
1997 and will fall to about 8,000 by 2008. Outsourcing vendors that
focus on complete chip designs are therefore targeting a falling market (in
unit terms). Most of the activity is moving to block and sub-system design.
This is where we believe vendors should be focusing their attention.
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Last Updated ( Thursday, 23 March 2006 )
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SVTechie Blog