For more information, visit https://semico.com/content/system-chip-market-analysis-and-methodology.
Design cycle times have lengthened, product life cycles have become shorter, consumer-driven applications and competition among chip and OEM manufacturers drives the use of SoCs. It is estimated that the time to design complex SoC silicon is twelve to sixteen months, and a typical product life cycle is less than twelve months. The SoC methodology is seen as a method to meet the market requirements for increasing complexity and still manage design cycle times. A new Semico Research report System-on-a-Chip: Market Analysis and Methodology (SC104-23) forecasts that revenue for this market will grow from $227.9 billion in 2022 to $250 billion by 2027.
“The ability to re-use existing Semiconductor Intellectual Property (SIP) blocks over the course of many SoC designs is one way to reduce the design time,” says Jim Feldhan, President Semico Research. “Unfortunately, the issue of interoperability between SIP blocks from different vendors accounts for a substantial amount of additional time and money that customers need to expend before they are assured their SIP will be fully usable. A feature of the current design landscape is that the cost to integrate discrete IP blocks is rising due to both the complexity of the designs and the increasing number of IP blocks being used in those designs.”
Additional key findings include:
- In 2023, China will account for 17.9% of the SoC market.
- At the 5nm node, software costs are approaching 60% of the total cost for complex SoCs.
- Software costs exceeded silicon design costs at the 22/20nm node and are expected to continue to outpace silicon costs for the foreseeable future.
- The Standard Cell market is projected to grow to $22B in 2027, an 8.7% CAGR.
