Semiconductor IP - Global Strategic Business Report

The global market for Semiconductor IP was estimated at US$7.4 Billion in 2024 and is projected to reach US$9.8 Billion by 2030, growing at a CAGR of 4.8% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Semiconductor IP market.

Global Semiconductor IP Market - Key Trends & Drivers Summarized

Why Has Semiconductor IP Become the Cornerstone of Chip Design Ecosystems?

Semiconductor intellectual property (IP) refers to reusable logic or design units that semiconductor companies integrate into system-on-chip (SoC) designs. These IP cores can be processor cores, memory blocks, interface protocols (e.g., USB, PCIe), or analog modules, developed either in-house or licensed from third-party IP vendors. With the growing complexity of SoCs and the rising cost of chip development-especially at nodes below 10nm-semiconductor IP has emerged as a strategic asset to accelerate time-to-market, reduce design risks, and cut down R&D expenditure.

The rapid pace of innovation in AI, automotive electronics, edge computing, and IoT is driving demand for highly customized, performance-optimized IP. Designers increasingly rely on pre-verified, production-proven IP blocks to assemble complex SoCs instead of building each module from scratch. The IP business model allows fabless companies and system integrators to focus on differentiation, such as AI engines or security features, while licensing commodity IP for standard functionality. IP portfolios from vendors like Arm, Synopsys, Cadence, and CEVA are fundamental in enabling the semiconductor industry`s fabless-foundry collaboration model.

How Are Design Trends and Functional Requirements Shaping IP Portfolio Evolution?

As chips become more application-specific and multi-functional, IP providers are investing in domain-specific architectures, interface IP, and security-compliant building blocks. AI accelerators, high-performance DSPs, RISC-V cores, and neural processing units (NPUs) are in high demand for edge AI and machine learning SoCs. With 5G and automotive pushing high-speed data exchange, interface IP such as SerDes, USB4, PCIe Gen5/Gen6, and Ethernet are critical for meeting bandwidth and latency targets. Likewise, functional safety IP and ISO 26262-compliant modules are essential in automotive and industrial automation designs.

Security IP is becoming an integral part of every SoC, driven by the rise in connected devices and increasing cyber threats. Hardware root-of-trust modules, secure boot, encryption/decryption cores, and TPM (trusted platform module) integration are being demanded in sectors ranging from smartphones to defense electronics. Additionally, configurable and soft IP compatible with FPGAs and heterogeneous computing platforms are gaining traction. IP vendors are now bundling IP subsystems, design services, and verification tools to deliver full-stack design enablement. These trends indicate a shift toward platform-level offerings that simplify integration and improve design productivity across multi-domain semiconductor ecosystems.

Which End-Use Applications and Geographies Are Driving IP Licensing Activity?

Consumer electronics and mobile chipsets continue to be major consumers of semiconductor IP, especially processor cores, graphics IP, and memory subsystems. The smartphone SoC supply chain relies extensively on licensed IP for modem, connectivity, and multimedia functionality. The automotive industry is another high-growth segment, with demand for IP supporting autonomous driving, ADAS, infotainment, and vehicle-to-everything (V2X) communication. The deployment of AI accelerators, image processors, and in-vehicle networking stacks relies heavily on third-party IP due to the need for functional safety, security, and power efficiency.

Geographically, North America leads the IP market, with Silicon Valley being the epicenter of IP development and licensing activity. Europe has a strong presence in automotive and industrial IP segments, while Asia-Pacific is witnessing rapid growth due to the semiconductor design ecosystem expanding in China, South Korea, Taiwan, and India. The growing number of fabless startups and government-backed semiconductor self-sufficiency programs in these regions are driving demand for licensable IP to accelerate chip development. Licensing models are also adapting to SaaS-like formats, subscription-based licensing, and pay-per-use models to accommodate smaller design houses and prototyping environments.

What Factors Are Fueling the Expansion of the Semiconductor IP Market Globally?

The growth in the semiconductor IP market is driven by several factors, including increasing SoC design complexity, faster time-to-market requirements, and rising demand for application-specific chips across AI, 5G, and automotive sectors. The rising cost of chip tape-outs, especially at advanced nodes, is encouraging designers to adopt proven IP blocks rather than risk costly design iterations. As semiconductor content increases in connected cars, smart homes, industrial automation, and edge AI systems, IP vendors are witnessing expanding opportunities for domain-specific cores, interface protocols, and embedded security modules.

The open-source hardware movement, particularly the rise of RISC-V, is disrupting traditional licensing models and giving rise to new ecosystems and business models. Furthermore, the expansion of edge and embedded AI is driving demand for customizable IP that balances performance, power efficiency, and area optimization. IP reuse strategies are also enabling startups and medium-sized players to innovate without incurring prohibitive design overheads. As global semiconductor design activity intensifies and SoC heterogeneity increases, the role of high-quality, flexible, and silicon-proven IP will remain critical to enabling innovation, reducing time-to-volume, and securing competitive advantage across the electronics value chain.

Scope Of Study:

The report analyzes the Semiconductor IP market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments: Type (Verification IP, Application-Specific Integrated Circuit, Memory IP, Interface IP, Processor IP); Architecture Design (Hard IP Core Architecture Design, Soft IP Core Architecture Design); End-Use (Healthcare End-Use, Telecommunications End-Use, Automotive End-Use, Consumer Electronics End-Use, Other End-Uses)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Verification IP segment, which is expected to reach US$3.8 Billion by 2030 with a CAGR of a 3.8%. The Application-Specific Integrated Circuit segment is also set to grow at 4.1% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $1.9 Billion in 2024, and China, forecasted to grow at an impressive 4.8% CAGR to reach $1.6 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Semiconductor IP Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Semiconductor IP Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Semiconductor IP Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Achronix Semiconductor, Arteris IP, Cadence Design Systems, CEVA, Inc., eMemory Technology and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 43 companies featured in this Semiconductor IP market report include:

• Achronix Semiconductor
• Arteris IP
• Cadence Design Systems
• CEVA, Inc.
• eMemory Technology
• eSilicon (Inphi)
• Faraday Technology
• Fujitsu
• Imagination Technologies
• Lattice Semiconductor
• Nand Logic
• Nvidia
• Open-Silicon
• Rambus Inc.
• Silvaco Group
• Sonics, Inc.
• Synopsys Inc.
• Tensilica (Cadence)
• VeriSilicon
• Xilinx (AMD)

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.