South Korea Semiconductor IP Market Driven by Increasing Adoption of Artificial Intelligence and Machine Learning Technologies

The South Korea semiconductor IP market has witnessed significant growth in recent years. Semiconductor intellectual property cores are integral components of system-on-chip designs. They provide pre-designed functions like memory controllers, processor local bus (PLB) bridges, DMA controllers, and peripherals. Semiconductor IP cores help reduce design time and development costs and ensureerror-free results. The increasing adoption of technologies like artificial intelligence, machine learning, IoT, and 5G has fueled demand for more powerful and efficient chips. This has driven the need for high-quality semiconductor IPs in South Korea.

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 Market are Arm Holdings, Synopsys, Inc, Cadence Design Systems, Inc, Imagination Technologies Limited, Lattice Semiconductor Corporation and Among Others. These companies have established themselves as leading providers of semiconductor IP cores, media processors, interface IP, memory and logic IP, verification IP, and other programmable platforms.

South Korea has witnessed increased demand for chips from the automotive, mobile, and networking sectors in recent years due to widespread digital transformation. The proliferation of AI-based technologies and rollout of 5G networks have boosted the need for more powerful yet efficient System-on-Chips (SoCs). This growing demand is expected to drive the South Korean semiconductor IP market.

Several South Korean companies are also expanding globally and partnering with international chipmakers to offer highly optimized IP solutions. For instance, key players are extending their presence in North America and China and have collaborated with foundries to cater to the surge in demand for specialized hardware accelerators. This global expansion allows players to tap new markets and diversify their revenue streams.

Market Key Trends

The increasing adoption of artificial intelligence and machine learning workloads is a major trend in the South Korea semiconductor IP market. Specialized AI chips require highly optimized IP cores for functions such as neural network processing, training, and inferencing. Leading players in the country are developing AI-focused IPs including deep learning accelerators, neural network processors, and AI engines. They are offering AI-Ready platform solutions integrated with pre-packaged AI capabilities to facilitate rapid development. This is expected to drive the need for AI-specific IPs in South Korea over the forecast period.

Porter’s Analysis

Threat of new entrants: High capital requirements and need for innovative IPs pose barriers for new players.

Bargaining power of buyers: Large tech companies have strong bargaining power due to their scale of operations.

Bargaining power of suppliers: Well established IP vendors have significant influence over buyers.

Threat of new substitutes: Alternative design strategies like full-custom design pose threats but are generally not substitutes.

Competitive rivalry: Intense competition among existing vendors to gain new customers and market share.

Geographical Regions

The South Korean semiconductor IP market is concentrated in North and South Chungcheong provinces where large foundries and fabless companies driving the demand are located. Gyeonggi province is also a major hub accounting for over 40% of the national value, driven by clusters in Suwon and Hwaseong cities.

The fastest growing region for the South Korean semiconductor IP market is expected to be Gangwon province, underpinned by the government’s focus on bolstering the semiconductor industry through facilities coming up in Wonju city area. Tax incentives and availability of engineering talent are attracting new fabless design houses and IP vendors to establish presence in the region.

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