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?
2
17/04/2013 GSA – IP Working Group
RTL?
Firmware?
Content?
Manufacturing recipes?
« IP » - What is it?
Patents
Copyrights
Know-how
Designs blocks
3
17/04/2013
RTL
Firmware
Content
Manufacturing recipes
All of the Above!
GSA – IP Working Group
« IP » - What is it? 4
17/04/2013
Idea Invention Instantiation Implementation
Technology
H/W
F/W
S/W
Subsystem
System
Content
Service
Experience
GSA – IP Working Group
« IP » - What is it? 5
17/04/2013
Idea Invention Instantiation Implementation
Technology
H/W
F/W
S/W
Subsystem
System
Content
Service
Experience
GSA – IP Working Group
Know-how (trade-secret)
« IP » - What is it? 6
17/04/2013
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
Know-how (trade-secret)
« IP » in the SoC context 7
17/04/2013
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
« Design IP » are ~60%* of all IPs sourced externally by ST 8
17/04/2013
Manufacturing
Hard Hardware
Soft Hardware
Firmware
Tool
Product Design
Software
Patent
System2011
2012
60~70 deals per year
GSA – IP Working Group * In volume
The IP Sourcing Chain 9
17/04/2013
Intelligence Scouting Make vs Buy Contract Deliver
Business request RFQ
Sourcing decision Contract
GSA – IP Working Group
The Sourcing Criteria: from PPA to PCR
Performance & Power
Risk
Cost (TCO)
10
17/04/2013 GSA – IP Working Group
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. »
11
17/04/2013 GSA – IP Working Group
The Sourcing Criteria: Cost vs Risk
Risk
Cost
12
17/04/2013
Requirement specification
Over-spec (over-engineered)
Disqualified
GSA – IP Working Group
Performance & Power
Assessing Sourcing Risk 13
17/04/2013
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
Assessing Sourcing Risks (cont’d) 14
17/04/2013 GSA – IP Working Group
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
17/04/2013 GSA – IP Working Group
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
17/04/2013
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
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
17
17/04/2013 GSA – IP Working Group
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
18
17/04/2013 GSA – IP Working Group
Eastern European & Asian IP suppliers are ermerging 19
17/04/2013
IP Suppliers to ST by Origin (2012-2013TD)
UKOther Western EuropeEastern EuropeIndiaAsiaUSAROW
GSA – IP Working Group
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
20
17/04/2013 GSA – IP Working Group
Thank You