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Strategic Analysis of the Global VLSI Design Services Market
Frost & Sullivan, Sep 2004
Decreased Planning Time and Shortened Timelines Increase Pressure on VLSI Design Vendors
Continuously evolving technology in the very large scale integration (VLSI) design services market is compelling participants to improve methodologies and tool flows to gain a foothold in this highly competitive and fragmented business. Service providers are now under pressure to deliver on stringent timelines with less planning time. Only participants that focus on sustaining long-term relationships with end users are likely to survive in this cyclic industry.
This Frost & Sullivan’s strategic analysis of the VLSI design services market, examines the demand for design services globally. The study provides in-depth information on digital, analog, and mixed signal services, besides offering a comprehensive overview of the latest industry trends, revenue forecasts, market drivers, and challenges.
Third-party Partnerships and Specialized Services Vital Market Trends
The trend of collaborating with third-party design houses to offer increased specialization is gaining momentum as participants are compelled to include innovation and creativity even in mundane projects. Such alliances are beneficial as they facilitate multitasking and optimum resource utilization, leading to better revenue per employee.
At a time when disaggregation is creating specialization outside the company and the rapidly changing technology is increasing pressure on business, design service vendors that can offer better financial ratios are likely to be in great demand, says the research analyst. A movement toward performance contracts where total payment is based on business performance and not solely on the technology is also expected.
Changing Roles of Design Service Vendors Increase End-User Value
Design service vendors have moved from being merely optimizers and enablers to becoming co-innovators. They are offering more end-user value due to scaled up complementary skills, internal methodologies, and process flows.
To gain an edge in the current competitive environment, design service vendors have begun to co-innovate with semiconductor vendors. Currently, they serve as time-to-market specialists focusing on system architecture consulting and intellectual property solution development, concludes the analyst.
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