British semiconductor intellectual property (IP) company, Imagination, has launched a service that does not charge a license cost. They are providing IP for only maintenance and technical support costs for two years. This is an unusual business model in the semiconductor IP industry, and they are gaining attention whether it will reduce the burden of initial IP purchase costs for semiconductor startups.
Imagination recently unveiled 'open access' program that has zero semiconductor IP license cost. Imagination is a British semiconductor IP company established in 1985 and has provided graphic processing unit (GPU) and artificial intelligence (AI) IP. They also have an experience with providing related IP to Apple.
Semiconductor fabless can utilize the 'open access' program that provides semiconductor IP without a license cost. There are total of 7 IP are available, including 4 GPU IP and 3 Neural Network Accelerator (NNA) IP, which are required for artificial intelligence (AI) implementation.
The license cost is free, but that doesn't mean semiconductor fabless doesn't pay anything. IP technical support and maintenance costs are required for semiconductor design. Customers have to pay 270,000 USD (about 330 million KRW) to receive the 'Man-Months' support and maintenance service provided by Imagination for two years. However, it is relatively cheap compared to the high-tech semiconductor IP that costs more than 1 million USD depending on the type.
Imagination is expecting that license 'zero' service would significantly reduce the initial IP cost burden of semiconductor fabless. Many semiconductor design startups spend the most in product development for IP and electronic design automation (EDA) tools area. By reducing IP purchase cost, the barrier to entry into the semiconductor design market can be lowered.
IP companies often receive royalties for each stage of semiconductor design and process. The open access program only requests royalties when finished semiconductor fabless products begin mass production. Imagination emphasized by saying, "Since we have a structure that receives royalties only when product development is successful, it is possible to create a differentiated system-on-chip (SoC) with relatively little initial capital."
[Summary of Imagination’s open access program]
By Staff Reporter Dongjun Kwon djkwon@etnews.com