COMPONENT EXCHANGE AIMS TO MAKE SCOTLAND CHIP CENTER.

A Virtual Component Exchange VCX, designed to enable companies to "plug" together semiconductor components into a system on a chip, has been launched in Scotland, where many of the world's leading semiconductor companies have manufacturing bases. When completed, the web-based VCX is designed to put developers in contact with end users and will offer descriptions of semiconductor intellectual property - known as virtual components (VC) - so that customers can piece together suitable chip designs from a range of sources. Scottish Enterprise, the government-backed agency designed to promote industry in the region, has joined forces with a group of major companies to form VCX. Initial members include Mentor Graphics, Siemens, Motorola, Toshiba, ISS, ARM, Phoenix Technologies, Cadence Design Systems and Taiwan Semiconductor Manufacturing Corporation. With estimates that the virtual component market will grow from $17bn today to $25bn by 2000, the VCX will aim to cut transaction time and costs by as much as 50%. The VCX will offer a contract configurator to enable the two sides to quickly set up a legal agreement, offer help in auditing VC use and collection of royalties and set up mediation and arbitration rules to settle disputes. The initial focus of VCX will be system level integration or system-on-chip and there are hopes it can build Scotland's 'silicon glen' into a leading world center for semiconductor design.