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Taiwan IC design service, silicon IP providers to see revenues hit highs in 4Q20 and beyond

Many Taiwan-based IC design service and silicon IP providers are expected to see their revenues hit record highs in the fourth quarter of 2020 thanks to continued orders from Chinese IC design houses, according to industry sources.

Chinese IC design houses have been keen on seeking R&D support from Taiwan's design service and silicon IP providers to develop their chip parts amid the ongoing "de-Americanization" campaign, said the sources.

Therefore, related firms in Taiwan, including Alchip Technologies, Global Unichip, RDC Semiconductor, Andes Technology, eMemory Technology, and M31 have benefitted from the trend, added the sources.

The sources pointed out that Chinese IC design houses are developing their IC parts based on a 3- to 5-year product roadmaps, which means that the visibility of current orders for Taiwan's design service and IP providers is likely to stretch into medium- to long-term dynamics.

In addition to increasing orders from Chinese IC makers, global heavyweight IT brands, including Apple, Google, Amazon, and Facebook as well as the Alibaba Group and Tencent, are also keenly developing their chips, fueling revenue growths at Taiwan's IC design and IP service firms in the next few years, commented the sources.

By DIGITIMES

Link:https://www.digitimes.com/news/a20201214PD216.html?mod=3&q=IC

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