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| Gartner Dataquest Says Worldwide Semiconductor IP Industry to Become a $2.9 Billion Market in 2004 | ||
| Semiconductors 2000 Conference to Provide Detailed Analysis on the Industry | ||
| Egham, United Kingdom, October 23, 2000 - One of the fastest growing segments in the semiconductor industry is the worldwide semiconductor intellectual property (IP) market, which is forecast to grow from $442 million in 1999 to $2.94 billion in 2004, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). Worldwide semiconductor IP revenue is projected to reach $620 million in 2000. | ||
| "IP is a key enabler of design reuse and is the only effective way of closing the 'design gap.' Without this technology, semiconductor vendors and OEMs will not be able to take advantage of today's semiconductor manufacturing advances," said Jim Tully, chief analyst for Gartner Dataquest's worldwide semiconductor group. "Although the IP market is very new, it is now hard to image the semiconductor industry without ARM, MIPS, Rambus and some of the other prominent IP players." | ||
| A semiconductor IP block is a predesigned function to be implemented in a semiconductor device. In some cases, the functions are parameterisable, allowing a degree of customization. These functions include physical library functions (analog or digital), basic blocks (such as counters and muxes) and system-level macros (also known as cores or virtual components) - including memory blocks. The microprocessor and bus interface blocks will become the dominant features of this market by 2004. | ||
| "IP usage is driven by user demand and by the availability of suitable products from credible vendors. Today, most IP vendors are very small and are perceived by large potential customers as vulnerable," said Mr. Tully. "Customers are reluctant to purchase strategically important IP from these companies until they are a little bigger and more stable. We believe the industry will pass through this stage within two years to emerge ready for stronger growth beyond 2004." | ||
| At this stage in the development of the IP market, many vendors are entering and leaving the business. Gartner Dataquest analysts said many of the new entrants are design houses that are looking to capitalize on internal IP and to steer the business into a more scalable model. "However, we believe that many of these companies will exit the market as they find the IP business to be very different to design services and beyond their current capabilities. ASIC vendors, ASSP vendors or OEMs will acquire other IP companies," Mr. Tully said. | ||
| More information on this market is available in the Gartner Dataquest report, "Worldwide Semiconductor Intellectual Property Forecast, 2000 through 2004." This document provides Gartner Dataquest's forecast of this market by product type, region and revenue category. The major applications of each block are also identified. | ||
| Detailed analysis on the future of the semiconductor industry will be announced during Gartner Dataquest's Semiconductors 2000 conference, October 30-31 at the Hyatt Regency La Jolla at Aventine, in San Diego, California. In its 26th year, this conference provides business-critical information for senior executives, managers, planners and developers from chipmakers, chip users, semiconductor equipment and materials providers and investors. Additional information on Gartner Dataquest's Semiconductors 2000 conference can be found on Gartner's Web site at www.gartner.com/semicon/usa, or by calling 1-800-778-1997 or 1-203-316-6757. | ||
| To purchase the report or subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8009. More information about Gartner Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at www.dataquest.com. | ||
| Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit, Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. ( www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 1999 revenue of $734 million. Gartner's 4,000 associates, including 1,200 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com. | ||
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