Managing the IP Sourcing Process: an IDM …...• Both IP cost and sourcing risk are difficult to...

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Managing the IP Sourcing Process: an IDM Perspective Philippe Quinio Group VP, IP Sourcing & Strategy April 17, 2013

Transcript of Managing the IP Sourcing Process: an IDM …...• Both IP cost and sourcing risk are difficult to...

Page 1: Managing the IP Sourcing Process: an IDM …...• Both IP cost and sourcing risk are difficult to assess • IP sourcing is a business process that must be managed • The IP market

Managing the IP Sourcing Process: an IDM Perspective Philippe Quinio

Group VP, IP Sourcing & Strategy

April 17, 2013

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« IP » - What is it?

Patents?

Copyrights?

Know-how?

Designs blocks?

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RTL?

Firmware?

Content?

Manufacturing recipes?

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« IP » - What is it?

Patents

Copyrights

Know-how

Designs blocks

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RTL

Firmware

Content

Manufacturing recipes

All of the Above!

GSA – IP Working Group

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« IP » - What is it? 4

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Idea Invention Instantiation Implementation

Technology

H/W

F/W

S/W

Subsystem

System

Content

Service

Experience

GSA – IP Working Group

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« IP » - What is it? 5

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Idea Invention Instantiation Implementation

Technology

H/W

F/W

S/W

Subsystem

System

Content

Service

Experience

GSA – IP Working Group

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Know-how (trade-secret)

« IP » - What is it? 6

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Idea Invention Instantiation Implementation

Technology

H/W

F/W

S/W

Subsystem

System

Content

Service

Experience

Design IP (soft)

FOSS Code

Copyright Code

Copyright Content

Patent

Patent

Design IP (hard) Recipe PDK

GSA – IP Working Group

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Know-how (trade-secret)

« IP » in the SoC context 7

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Idea Invention Instantiation Implementation

Technology

H/W

F/W

S/W

Subsystem

Design IP (soft)

FOSS Code

Copyright Code

Design IP (hard)

GSA – IP Working Group

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« Design IP » are ~60%* of all IPs sourced externally by ST 8

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Manufacturing

Hard Hardware

Soft Hardware

Firmware

Tool

Product Design

Software

Patent

System2011

2012

60~70 deals per year

GSA – IP Working Group * In volume

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The IP Sourcing Chain 9

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Intelligence Scouting Make vs Buy Contract Deliver

Business request RFQ

Sourcing decision Contract

GSA – IP Working Group

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The Sourcing Criteria: from PPA to PCR

Performance & Power

Risk

Cost (TCO)

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Managing Requests from Business Owners

• Ill-defined requests • « I want the best IP out there » • « I want the best IP at the lowest cost » • « I want a good IP at no risk for my project » • « I do not care about the cost as long as the IP performs to spec & is delivered on

time »

• Well-defined requests • « I want an IP that delivers performance P delivered before time T at reasonable

cost & risk consistent with overall project risk. » • I want the least costly IP at risk somewhat similar to other IPs in the SOC and

performance good-enough for my market segment. »

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The Sourcing Criteria: Cost vs Risk

Risk

Cost

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Requirement specification

Over-spec (over-engineered)

Disqualified

GSA – IP Working Group

Performance & Power

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Assessing Sourcing Risk 13

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Risk of IP Delivery

Risk of IP Integration X Risk of IP Mkt

Adoption X Risk of IP Legal Challenge X

GSA – IP Working Group

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Assessing Sourcing Risks (cont’d) 14

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Risk of IP Delivery

Risk of IP Integration

Risk of IP Market Adoption

Risk of Legal Challenge

Source ASource BSource CSource ESource D

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Projecting IP Costs 15

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0

20

40

60

80

100

120

Source A Source B Source C Source D Source E

IP Total Cost of Ownership ($M)

Specif . ST integr. cost

IP silicon area

Royalties

NRE

Fees

N/A

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Trading-off Risk vs Cost 16

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Worst

Best

GSA – IP Working Group

Source A

Source B Source C

Source E

0,5

1,0

2,0

0,5 1,0 2,0

Rel

ativ

e R

isk

over

Life

time

Relative Cost over Lifetime

IP Sourcing Trade-off

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Common Pitfalls in IP Sourcing • Cost

• Miss or undervalue cost components • Fail to account for time value • Emphasize accounting over economics

• Risks • Incomplete apreciation of risks • Believing that risks can all be contracted away • Under-estimating risks under « Make » scenario

• Performance • Leave performance spec undefined • Over-specify

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IP Sourcing Trends

• Demand • Subsystems rather than individual design IPs • More software • More patent licensing • Winner takes all in mainstream IPs • Niches developing for system IPs

• Supply • Consolidation in the IP market • Emerging suppliers in Eastern Europe & Asia for Interface Ips • Fabless chip suppliers slowly entering IP market • Diversification towards « system » IPs

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Eastern European & Asian IP suppliers are ermerging 19

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IP Suppliers to ST by Origin (2012-2013TD)

UKOther Western EuropeEastern EuropeIndiaAsiaUSAROW

GSA – IP Working Group

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Key Takeaways • More than Design IPs!

• Once performance requirements are defined, it’s all about Cost vs Risk

• Both IP cost and sourcing risk are difficult to assess

• IP sourcing is a business process that must be managed

• The IP market is consolidating but continues to be fueled by emerging suppliers diversifying away from design service or chip biz

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Thank You