Panelists cite pitfalls of silicon IP business

Richard Goering, EE Times
(05/02/2007 4:30 PM EDT)

SAN JOSE, Calif. — The silicon intellectual property (IP) business is consolidating and maturing, but business models still need work, according to panelists at an EDA Consortium meeting here Tuesday evening (May 1). What's needed, panelists said, is high-value IP provided with integrated solutions or platforms.
Panelists, drawn mostly from IP vendors, generally agreed that royalties represent the best revenue model for silicon IP providers. But they clashed over such issues as IP patent protection and the viability of pure-play IP providers.

The one user representative on the panel was Ken Tallo, managing director of the mobility group at Intel Corp. He opened the panel discussion by citing a recent EE Times article, " IP providers cast wary eye on TSMC."

"As I read the article, I had one thought — I really like Home Depot," Tallo said. Home Depot isn't just lumber and nails, he noted; customers can buy pre-made cabinets, snap-in-place flooring, and entire bathrooms. And that's the kind of service Intel wants to see with third-party IP, Tallo said.

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