Semiconductor Intellectual Property Market Report 2026

The semiconductor intellectual property market size has grown rapidly in recent years. It will grow from $7.97 billion in 2025 to $8.87 billion in 2026 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to rising semiconductor innovation, growing chip miniaturization, early development of reusable design models, expansion of consumer electronics manufacturing, increasing reliance on integrated circuits.

The semiconductor intellectual property market size is expected to see rapid growth in the next few years. It will grow to $13.54 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to increasing adoption of complex ic architectures, rising demand from telecom and automotive sectors, growing investments in chip innovation, strengthening reliance on licensed semiconductor platforms, expanding semiconductor research initiatives. Major trends in the forecast period include increasing demand for chip design reusability solutions, growing licensing of advanced semiconductor blocks, rising development of specialized integrated circuit ip, increasing focus on royalty based semiconductor business models, growing usage of modular semiconductor architecture designs.

The growing adoption of connected devices is expected to contribute significantly to the growth of the semiconductor IP market during the forecast period. Connected devices refer to physical objects that can communicate with one another and with other systems over the internet, commonly known as the Internet of Things (IoT). These devices connect using technologies such as Wi-Fi, NFC, Bluetooth, and mobile networks. IoT devices rely heavily on semiconductors, microprocessors, and integrated chips, all of which incorporate semiconductor intellectual property (IP) to enable functionality, connectivity, and performance. For instance, in January 2024, according to IOTech, a UK-based Internet of Things solutions and services provider, the number of smart devices installed globally was projected to increase from 51.11 billion in 2023 to 62.12 billion in 2024, highlighting strong growth in smart technology adoption. Therefore, the expanding adoption of connected and IoT devices is driving the growth of the semiconductor IP market.

Major companies operating in the semiconductor IP market are increasingly focusing on strategic partnerships and collaborations to enhance IP designs, integrate advanced development tools, and accelerate chip innovation. Strategic partnerships involve cooperative agreements in which companies combine resources, expertise, and technologies to improve product offerings and reduce development timelines. For instance, in October 2023, Arm Holdings plc, a UK-based semiconductor IP company, expanded its collaboration with Synopsys Inc., a US-based semiconductor IP and electronic design automation (EDA) provider. Under the Arm Total Design program, Synopsys delivers its AI-driven full-stack EDA suite along with a pre-validated IP portfolio to support faster and more optimized system-on-chip (SoC) designs based on Arm architectures. This collaboration helps customers reduce design risk, improve performance, power, and area efficiency, and accelerate time-to-market for next-generation semiconductor products.

In March 2024, Synopsys Inc., a US-based EDA and semiconductor IP solutions provider, acquired Intrinsic ID B.V. for an undisclosed amount. Through this acquisition, Synopsys aims to strengthen its semiconductor security IP capabilities by integrating Intrinsic ID’s Physical Unclonable Function (PUF) technology and expanding its security-focused IP offerings for SoC designers. Intrinsic ID B.V. is a Netherlands-based company specializing in PUF-based semiconductor IP that supports device identity, hardware root-of-trust, and anti-counterfeiting applications in connected and IoT devices.

Major companies operating in the semiconductor intellectual property market report are Arm Holdings plc, Synopsys Inc., Cadence Design Systems Inc., CEVA Inc., Imagination Technologies Group plc, eMemory Technology Incorporated, Rambus Inc., Mentor Graphics Corp., Faraday Technology Corp., Dolphin Integration SA, Open-Silicon Inc., Sonics Inc., VeriSilicon Holdings Co. Ltd., Silvaco Inc., Kilopass Technology Inc., M31 Technology Corporation, Open Five Inc., TransPacket AS, Andes Technology Corporation, Arasan Chip Systems Inc.

Asia-Pacific was the largest region in the semiconductor intellectual property (IP) market in 2025. North America was the second-largest market in the global semiconductor intellectual property market share. The regions covered in the semiconductor intellectual property market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the semiconductor intellectual property market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The semiconductor IP market includes revenues earned by entities by providing services such as hard IP, soft IP, and verification IP. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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