Independent Memory-IP Market Will Have Double-Digit Growth Through 2009

worldwide

In-Stat: The worldwide market for independent memory intellectual property (IP) will reach $410.4 million in 2009, for a compound annual growth rate (CAGR) of 12.3% from 2004 to 2009. Whether the IP is licensed from an independent provider, a design services company, or an independent device manufacturer (IDM), it now represents the foundation for virtually every integrated circuit being designed, says In-Stat. And independent IP providers are filling a growing niche in the memory market. We estimate there are approximately 20 independent IP providers, for all types of memory functions, with some just competing in their own regions. Although new companies will continue entering this market, the rate of entry will be considerably slower than in the past. In all probability, many of these companies will be acquired by either IDMs or larger IP providers, such as ARM, or by one of the design-services providers.

• worldwide revenue for independent memory-IP providers grew by 21.2% in 2004, from $189.3 million in 2003.

• Of the 20 or so companies participating in this market, the vast majority will remain relatively small, with total revenues staying below $10 million.

• Companies in the Americas will continue to dominate IP licensing, followed by companies in Japan and the Asia Pacific region, respectively.

Independent Memory IP Providers: A Volatile World Going Non-Volatile Publ 20050620