SoC market to recover strongly in 2010

PHOENIX, USA: The SoC market experienced negative revenue for the first time in 2009. Total market revenues declined 19.2 percent in response to weak end-market unit demand and increasing pressure on device ASPs. However, as market demand solidifies, revenues will grow from $45.3 billion in 2010 to $69.4 billion by 2015, a CAGR of 8.9 percent.

The gap between time-to-market and design completion has been lengthening for the last few years. Just as design cycle times have lengthened, product life cycles have become shorter. It is estimated that the time to design fairly complex SoC silicon is 12-16 months, and a typical product life cycle length at just nine months. The SoC methodology is seen as a way to bring this process under control once again.Source: Semico, USA.

The willingness of established silicon manufacturers to solicit and acquire SIP from 3rd party sources is increasing, especially at companies who have previously believed it was better to create their own SIP internally.

SoC is more of a methodology than a separate piece of silicon. Many current manufacturers of older, pre-existing designs will take advantage of the new ease of design SoC offers and choose to redefine/redesign these products. These products, along with the traditional types of SoC, are starting to employ the new design methodology inherent in the IP Subsystem approach to cut design costs and reduce design cycle times, while increasing functionality and performance.

The market is embracing a new methodology to designing SoCs that will allow new types of silicon solutions to be created and employed by end system designers throughout the electronics market.