The South Korea semiconductor IP market involves design and licensing of intellectual properties that are basic electronic components and circuits used in integrated circuits, printed circuit boards and other electronic devices. Semiconductor IPs help in reducing costs and development time for firms by reusing tested and proven circuit designs. Some key IP cores available in the market include processor IP cores, peripherals, embedded memories, interface IP cores and analog IP blocks. Rising popularity of virtual prototyping is also propelling the demand for semiconductor IPs.
The South Korea Semiconductor IP Market is estimated to be valued at US$ 395.0 Mn in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the South Korea semiconductor IP are Arm Holdings, Synopsys, Inc, Cadence Design Systems, Inc, Imagination Technologies Limited, Lattice Semiconductor Corporation and Among Others. The key players are focusing on developing advanced semiconductor IPs and investing in R&D to gain a competitive edge in the market. For instance, in 2021, Arm Holdings launched its new core design IP - Cortex-A78C CPU core to help develop advanced chips for next-gen computing applications.
The demand for semiconductor IPs is growing rapidly driven by increasing application of semiconductors inconsumer electronics, automotive, IoT devices and data centers. To ensure continuity of supply, semiconductor foundry companies are investing heavily in developing generic as well as application-specific IPs. For example, Samsung Electronics invested over $25 billion in 2021 to expand production capacities to meet surging demand for memory chips and logic ICs.
Advancements in fabrication technologies such as 5G/6G communications, cloud computing, artificial intelligence and advanced driver-assistance systems are enabling development of innovative and complex semiconductor IPs. Major IP vendors are developing IPs designed for high-performance computing and low-power applications to support next-gen technologies. For instance, in 2022, Cadence launched Tensilica Fusion F1 DSP aimed at AI and machine learning workloads.
Market Trends
The growing adoption of System on Chip (SoC) devices across various end-use industries is one of the key trends in the South Korea semiconductor IP market. SoCs integrate core logic functions along with memory and peripheral interfaces on a single die thereby reducing size and power consumption of electronics devices. This is propelling the demand specialized semiconductor IPs that can function independently on a SoC.
Rising investments in IoT and connected devices will also contribute significantly to the semiconductor IP market growth. The proliferation of IoT applications require integration of different communication interfaces, memory interfaces and processor IPs on a single silicon chip. This allows development of customized IoT SoCs with optimized functionality and performance.
Market Opportunities
One of the major opportunities for semiconductor IP vendors is to develop neuromorphic computing IPs inspired by biological neural networks. Neuromorphic semiconductor solutions can enable development of advanced AI systems for simulating human brain and intelligence.
Growing focus on electric vehicles also presents new avenues. Future automotive semiconductor IPs are expected to support features like automated driving, ADAS, EV battery management and connectivity. IP vendors can collaborate with automotive chipmakers to develop customized EV semiconductor solutions.
Impact Of COVID-19 On South Korea Semiconductor IP Market Growth
The COVID-19 pandemic has impacted the growth of South Korea semiconductor IP market. In the pre-COVID times, the market was growing at a steady pace owing to increasing demand for semiconductor chips across various end-use industries like consumer electronics, automotive, telecommunication etc. However, during the pandemic, macroeconomic challenges like declining consumer spending, supply chain disruptions and restrictions on industrial activities negatively impacted the market growth in 2020. Various chip and semiconductor companies experienced lower sales due to fall in demand from industries like automotive whose production units were shut during lockdowns.
However, with gradual ease of restrictions and resumption of economic activities from 2021, the market has started recovering. The demand for semiconductor chips increased rapidly from industries like data centers, telecommunication and healthcare technologies that boosted growth during the pandemic years. Also, rising need for efficient and advanced chips due to growing digitization and connectivity has accelerated the IP development activities in South Korea. The government initiatives to develop local chip industry and reduce dependency on imports has boosted investments in IP design and licensing. Moreover, increasing 5G deployment, growth of IoT, AI, automotive electronics are projected to drive strong demand for specialized chips in post-COVID years, hence fueling market growth going forward. IP providers need to focus on new technologies, customized IP solutions and flexible business models to cater pandemic induced changes in the industry.
In terms of geography, Seoul Metropolitan City region in South Korea accounts for the largest share in the semiconductor IP market in terms of value. It is the hub for major chip design companies and home to global tech giants like Samsung Electronics and SK Hynix. The availability of skilled workforce, infrastructure, technology clusters and proximity to end-use industries have made it the dominant region. Another fastest growing region is Gyeonggi province, located near the capital Seoul which is emerging as a major electronics manufacturing base in the country. It hosts production units of various local and international companies due to logistical and resource advantages.
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Author Bio:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. (LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )
What Are The Key Data Covered In This South Korea Semiconductor IP Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the South Korea Semiconductor IP's growth between 2024 and 2031.
:- Accurate calculation of the size of the South Korea Semiconductor IP and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- South Korea Semiconductor IP Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of South Korea Semiconductor IP vendors
FAQ’s
Q.1 What are the main factors influencing the South Korea Semiconductor IP?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top South Korea Semiconductor IP companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the South Korea Semiconductor IP’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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