Continuously evolving technology in the very large scale integration (VLSI) design services market is compelling participants to improve methodologies and tool flows to gain a foothold in this highly competitive and fragmented business. Service providers are now under pressure to deliver on stringent timelines with less planning time. Only participants that focus on sustaining long-term relationships with end users are likely to survive in this cyclic industry.

This Frost & Sullivan's strategic analysis of the VLSI design services market, examines the demand for design services globally. The study provides in-depth information on digital, analog, and mixed signal services, besides offering a comprehensive overview of the latest industry trends, revenue forecasts, market drivers, and challenges.

Third-party Partnerships and Specialized Services Vital Market Trends

The trend of collaborating with third-party design houses to offer increased specialization is gaining momentum as participants are compelled to include innovation and creativity even in mundane projects. Such alliances are beneficial as they facilitate multitasking and optimum resource utilization, leading to better revenue per employee.

"At a time when disaggregation is creating specialization outside the company and the rapidly changing technology is increasing pressure on business, design service vendors that can offer better financial ratios are likely to be in great demand," says the research analyst. "A movement toward performance contracts where total payment is based on business performance and not solely on the technology is also expected."

Changing Roles of Design Service Vendors Increase End-User Value

Design service vendors have moved from being merely optimizers and enablers to becoming co-innovators. They are offering more end-user value due to scaled up complementary skills, internal methodologies, and process flows.

"To gain an edge in the current competitive environment, design service vendors have begun to co-innovate with semiconductor vendors. Currently, they serve as time-to-market specialists focusing on system architecture consulting and intellectual property solution development," concludes the analyst.

Frost & Sullivan Growth Partnership Service

Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes:

Assisting companies to reach their full potential in the core business
Providing growth strategies to help companies expand into related businesses
Preemptively redefining the core business during market turbulence
Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
Recommending growth management strategies through continuous partnership

To maximize the potential for growth within a firm's internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan's strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients' growth.

Technologies

The following technologies are covered in this research:

Standard Cell Based ASIC: A standard cell design is a full custom circuit design completed using only predefined logic cells from a foundry's specific library and physical design processes provided by standard EDA/CAD tools. The set of library cells provided by the foundry is crucial; the coordination between the logical design and the physical design is substantially more effective if the library is rich.

Field Programmable Gate Array (FPGA): The FPGA, like the gate array, places fixed cells on the wafer and the FPGA designer constructs more complex functions from these cells. However, the cells provided on the FPGA can be substantially more complex than the simple gates provided on the gate array. In addition, the term field "programmable" highlights the customizing of the ASIC by the user, rather than by the foundry manufacturing the FPGA.

Structured ASIC: Structured ASICs simplify the complexity of custom silicon design by providing a fabric of identical building block cells that are prearranged in a series of sizes and complexities. This means the design task is mapping the circuit into a fixed arrangement of known cells, rather than mapping standard cells to the design. Modular array ASIC, platform structured ASIC, and a few FPGAs fall under this category.

Application Specific Standard Product: It is a technology developed by one vendor to be built into products by multiple other vendors selling into a particular market. The term does not describe a technology per se, but rather the business model of its productization: one company leverages technology development costs across multiple companies' products (instead of only its own products).

Benefits of this Service

Revenue Forecasts and Geographical Analysis of the VLSI Design Market

The study includes market revenue and forecasts for 2003-2008 for the complete VLSI design service market including in depth analysis about various geographical revenue forecasts. This will enable participants to have a better understanding of this market to recognize and exploit opportunities for growth.

Detailed Geographic Analysis Will Help in Understanding Future Prospects and Aid in Devising Marketing Strategies

Frost & Sullivan's recent research on the nature and complexity of designs across various parts of the globe includes a deconstruction of Asia into the Indian, Korean, Chinese, and Taiwanese markets. This information will be beneficial for participants in understanding market trends and aid in identifying their core strengths and maximizing them. The study will also provide insights to help construct marketing strategies for long-term goals.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors within the VLSI Design Service window in this research:

Digital Design Services
Analog Design Services
Mixed Signal and RF Design Services
VLSI Design Service Overall Market
VLSI Design Service Market by Geography

1. Executive Summary

1. Executive Summary

2. Overview - Technology and Market

1. VLSI Design Services Market Definitions
2. Technology Definitions

3. Business Models

1. Time & Material Model
2. Fixed Price Model
3. Dedicated Engagement Model
4. Offshore Outsource Model
5. Conclusions

4. Design Services Models and Design Chain Evolution

1. Design Service Models
- 1. Optimizer
- 2. Enabler
- 3. Co-Innovator
2. Design Chain
3. Design Service Superstore

5. Market Dynamics

1. Key Challenges
2. Drivers
3. Restraints

6. Trends

1. Overview
2. ASIC Design Starts
3. ASIC Design Starts by Process Technology
4. ASIC Design Trends
5. ASIC Performance Trends
6. FPGA Design Starts
7. FPGA Performance Trends
8. ASSP Design Starts
9. Structured ASIC Design Starts
10. Next Generation Product Price
11. Pricing Trends

7. Opportunities

1. Opportunities: Avenues
2. Total Available Market Opportunity Forecast

8. Market Forecasts & Analysis

1. Salient Features of the Market
2. Revenue Analysis
3. Total Market Forecast
4. VLSI Design Services Organizations Breakout 2004

9. Geographic Analysis

1. Revenue Analysis
2. Total VLSI Design Services Revenues Forecast
3. North America
4. Europe
5. Asia
6. Market Trends by Geography

10. Asia Deconstructed (India; China; Taiwan & Korea)

1. ASIC Design by Gate Count
2. FPGA Design By Gate Count
3. Process Technology for Digital Design
4. Process Technology for Analog Design
5. Process Technology for Mixed-Signal Design
6. Human Capital
7. India Versus China
8. Challengers to the Asian Top Dogs

11. Strategic Recommendations

1. Recommendations
2. Strategy to Outsource

12. Selected Company Profiles

1. Wipro Technologies
2. Synopsys Inc.
3. Sasken Communications Technologies Ltd.
4. Accent Srl
5. NewLogic Technologies AG
6. Shanghai Hua Jie IC Technology Co Ltd
7. Astro Semiconductor Inc.
8. eSilicon Corporation
9. SiWorks Inc.
10. Silicon Logic Engineering Inc.
11. Comit Systems Inc.
12. Intrinsix Corp
13. Innovative Systems & Technologies Corporation
14. Advanced Semiconductor Technologies Ltd.
15. Goyatek Technology Inc.
16. Advinno Technologies Pte Ltd.
17. Toppan Technical Design Center
18. SangHwa Micro Technology Inc.

13. Frost & Sullivan Awards

1. Frost & Sullivan Award for Business Development Strategy Leadership Award in the VLSI Design Services Market

14. Decision Support Database

1. DSDs
1. Business PCs per Enterprise
2. Annual Telecom Investment
3. Mobile Handset Sales
4. Digital Camera Shipment
5. Vehicle Production

Introduction
Related Reports

User Guide About Us Policies Site Map

Int'l: +1-860-674-8796 US: +1-866-353-3335 (Toll Free) | EU: +32-2-535-7543

Strategic Analysis of the Global VLSI Design Services Market

Introduction

Research Overview

Decreased Planning Time and Shortened Timelines Increase Pressure on VLSI Design Vendors