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To: Don Green who wrote (42862)	5/23/2000 9:39:00 AM
From: Don Green	Respond to of 93625

Gartner's Dataquest Says Emerging Semiconductor IP Industry Grew 36 Percent in 1999; New Survey Report Provides Detailed Analysis on Semiconductor IP Market Date: 05/23 08:28 EST EGHAM, United Kingdom, May 23, 2000 (BUSINESS WIRE) -- Driven by the trend toward system-on-chip (system level integration), the worldwide semiconductor intellectual property (IP) market totaled $417 million in 1999, up 36 percent from 1998 revenue results, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). In 1998, worldwide semiconductor IP revenue reached $306 million. Dataquest defines a semiconductor IP block as a predesigned function to be implemented in a semiconductor device such as an ASIC, ASSP or PLD. The top three vendors, ARM, MIPS Technology and Rambus, represented 51 percent of the worldwide semiconductor IP market in 1999 (see Table 1). "The relative newness of the semiconductor IP market has led to much experimentation in business models by the various players," said Jim Tully, chief analyst for Dataquest's Semiconductor Worldwide group. "The uncertainty of success in this market is itself a big impediment to market growth, as customers are concerned over support from vendors in mission-critical applications." Table 1 Top 10 Worldwide Semiconductor Vendors by Revenue Estimates (Millions of U.S. Dollars) 1998 1998 Market 1999 1999 Market 1998-1999 Company Revenue Share (%) Revenue Share (%) Growth (%) ARM 59.1 19.3 88.5 21.2 49.7 MIPS Technology 54.0 17.6 77.2 18.5 43.0 Rambus 39.3 12.8 45.3 10.9 15.3 Mentor Graphics 33.1 10.8 31.7 7.6 -4.2 Synopsys 24.2 7.9 24.5 5.9 1.2 InSilicon 11.8 3.9 19.3 4.6 63.6 DSP Group 14.6 4.8 19.0 4.6 30.1 Artisan 15.6 5.1 17.3 4.1 10.9 Sican 4.2 1.4 6.9 1.7 64.3 SSL 4.6 1.5 5.7 1.4 23.9 Others 45.5 14.9 81.6 19.6 79.3 Total Market 306.0 100.0 417.0 100.0 36.3 Source: Dataquest (May 2000) Led by ARM and MIPS Technology, microprocessor blocks dominated worldwide IP revenue, reaching $190 million in 1999. Bus interface blocks such as PCI, USB and IEEE 1394 have proven to be popular functions for third-party IP providers because of the ease of verifying a standard function. Bus interface revenue totaled $76 million. "Most of these companies in this marketplace are operating in a commodity or near commodity market and are therefore operating in a make-versus-buy environment with standards-based IP," Mr. Tully said. "Prices start to fall rapidly as soon as products are introduced, and this can kill companies that do not move fast enough. Vendors must add more value or develop a plan that includes the criteria for dropping a particular IP product and making a strategic switch to an alternative." The full survey details are available in the Dataquest Market Statistics report titled "Worldwide Semiconductor Intellectual Property Market Share Rankings, 1999." The report forms part of Dataquest's Intellectual Property Advisor Service that provides market analysis and advice to vendors and users of semiconductor IP. To purchase the report, or subscribe to Dataquest's Semiconductor programs, please call 800/419-DATA, or 408/468-8009. More information about Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at dataquest.com. Gartner's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner, the world's premier business technology advisor, was founded in 1979 and is headquartered in Stamford, Connecticut. Gartner provides unrivaled thought leadership for more than 9,600 client organizations worldwide. It achieved 1999 revenue of $734 million and has 80 locations worldwide. Gartner's 3,600 associates, including 1,200 research analysts and consultants, help clients achieve their business objectives through the intelligent and efficient use of technology. For more information about Gartner's industry-leading research capabilities, services and events, please visit gartner.com. CONTACT: Gartner Group Inc. Tom McCall, 408/468-8312 tom.mccall@gartner.com or Hanne Main, 44-1784-487-331 hanne.main@gartner.com URL: businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. Copyright (C) 2000 Business Wire. All rights reserved.