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...
Managing the IP Sourcing Process: an IDM Perspective Philippe Quinio
Group VP, IP Sourcing & Strategy
April 17, 2013
« IP » - What is it?
Patents?
Copyrights?
Know-how?
Designs blocks?
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RTL?
Firmware?
Content?
Manufacturing recipes?
« IP » - What is it?
Patents
Copyrights
Know-how
Designs blocks
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RTL
Firmware
Content
Manufacturing recipes
All of the Above!
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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
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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
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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
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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)
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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
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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
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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
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Performance & Power
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
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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
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
Trading-off Risk vs Cost 16
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Worst
Best
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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
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
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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
