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Intellectual Property Expected to be Driver of Value-Pricing SOC Chips, Reports Cahners In-Stat Group.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 6, 1999--

Cahners In-Stat Group estimates that 160 Million System On Chip Units in 1998 represented 15 percent of the total worldwide implemented systems.

By 2003, percentage figures are expected to double and units produced will increase more than six-fold. The majority of SOCs will be implemented in standard cell technology for applications whose volume will justify the engineering effort and investment risk, reports the high-tech market research firm.

"Intellectual property is expected to be the driver of value-pricing SOC chips and a major factor in slowing down ASP erosion," said Max Baron, senior analyst for the Micrologic Group.

"As long as SOC development tools and standards continually require extremely large engineering resources and initial investments, they will be prohibitive for many companies." This will result in a temporary effect of limiting the number of system houses that could undertake an SOC approach to implementation.

According to Cahners In-Stat Group, it is estimated that by 2003 there will be a demand for almost 210 M SOC units for small consumer appliances with revenue approaching 4 billion U.S. dollars. By the same year, Configurable Micrologic (CML), a mix of hard cores, standard cell and FPGA is expected to be the implementation medium for almost 10 percent of the total SOCs.

Cahners In-Stat Group also reports: -0-

-- Significant opportunities for increasing SOC ASPs will begin
 within the next two years as new technologies and appliance
 functions ramp up in high volume
-- Small consumer appliances' SOC ASPs will go down by 2003 and, to
 maintain revenue, will be relying on the introduction of new
 Intellectual Property and new features
-- By comparison, Configurable Micrologic (CML) chips are expected
 to be pricier and will be aimed at innovation and lower volume
 applications
-- Decreased development risk and fast time to market will be the
 key behind CML


The report, System-on-Chip Business Flow and Small Consumer Appliance Demand, No. ML9903SV, covers SOC implementation technologies and SOC end-use in small consumer appliances. A five-year forecast for 1999-2003 and a history for SOC through 1997-98 are also detailed. A second follow-up report covering the application of SOC for networking systems will also be published.

Cahners In-Stat Group (http://www.cahnersinstat.com) is a high-technology market research firm covering the consumer/convergence, networking, wireless, telecommunications, Internet and semiconductor markets.

Headquartered in Newton, Mass., offices are also located in Scottsdale and San Jose, Calif. Cahners In-Stat Group is part of Cahners Business Information, the largest publisher of specialized business publications in the United States, and a division of Reed Elsevier.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 6, 1999
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