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What's the business model for IP cores company?

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msadek_eng

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I wonder that what is the oppertunity to open a company that generates IP cores
Who is the customers?
who is the competitors?
what is the market size .. is it only for the big companies, or a small company can participate????
what shall be needed and how much this company capital?
 

IP cores company

Yes, I think IP cores is a big opportunity for new company. Now the biggest companies dominate the IC market, but these companies lack innovation. and they will purchase many IPs for other IP cores company. but in other side, there are many IP design companies in the world including small and big's. So you should find the key field and know what to focus on.
 

IP cores company

Try to search the internet to see your opponents ,their products and prices. Try to find a missing part in the market and prepare your edge. It is not a small job but it worth.
 

Re: IP cores company

I think the main custom of IP core are middle-size companies, and they use the IP cores to catch the time to market and compete with big companies. Big comanies always have a lot of IPs in some fields. Sometimes they need IP cores to enter a new field.
The IP providers are mostly small ones(except for MIPS and ARM). They focuse on one specific field and supply the IPs in the field.
But I don't think there are much space for small companies to make innovations since the big companies dominate the standards and market.
 

Re: IP cores company

IP companies are companies which develop standard macros/cells

PCI Express, WUSB, USB, Ethernet, SATA, Crypto cores etc.

The consumers of these guys are OEMs, Blue chip companies, fabless semi companies etc.

Good idea to become IP company, with design service model.

But u should develop niche IPs to increase ur valuation.
Thanks,
Gold_kiss
 

IP cores company

IP cores usually standard oriented or algorithm oriented. For the former, it is sometimes very expensive to purchase the standard and follow it to keep your IPs synced; for the latter, it might be a good opportunity, particularly for some complex IP, like H264 codec, MPEG4 codec, etc. But a pre-investigation is necessary
 

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