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The long road to IP commercialization


20th IP-SoC Conference
December 7th 2011; Grenoble

Philippe Quinio
Jean-Luc Jaffard

                              Confidential Information
About the Authors…
              Group Vice-President
              IP Sourcing & Strategy




               Telecom engineer, MBA
               Former management consultant

               Multiple jobs at ST in Strategic Planning,
               Marketing, Finance and Technology Sourcing
                                                             JL Jaffard
  Ph Quinio

              Director
              Intellectual Property Business Unit

              Semiconductor engineer

              Multiple jobs at ST in R&D, Marketing and
              Advanced Technology Sourcing

                                              Confidential Information    2
IPs at IDMs: Make, Re-Use or Buy?


                       Performance
                                     IP performance exceeds spec (over-engineering)



Requirements
Specification



                                                     Risk

                                      Risk vs Cost trade-off

                Cost

                                        Confidential Information
Typical Cost vs Risk trade-off Analysis in IP




                                                   Worse




                               Better




                                        Confidential Information   4
IP Out-licensing vs Support Effort
Potential reuse/out-licensing




                                                                                                               Support Effort
                                            Central Team                        Product Organisation
                                            Design profile                         System profile




                                    Foundation         Mid Complexity   High Complexity         Sub-System
                                Standard cells       Mid Resolution     Video Codec          Image Signal
                                Low speed IF         ADC/DAC            RF                   Processing
                                LDO                  PLL                µ Core & Tools       GPS
                                                     High Speed I/F     High Res/ Speed      Modem
                                                     Memories           AD/DAC               Graphic

                                                                                    Confidential Information                5
The IP Support Challenge: IDM vs IP Provider

                           Product A                               Customer


                           Product B                               Customer


                           Product C      IP                       Customer
IDM
                                       Provider
                           Product D                               Customer


                           Prodcut E                               Customer


                           Product F                               Customer


      Limited number of                     Unlimited number of
      internal customers                    customers
      IP optimization per                   Support Optimization
      internal customer &
      application

                                           Confidential Information           6
The Long Road…

 For an IDM deciding to move to IP business means:
    An alternative source of revenues & profit
         Increases R&D ROI
     A new business model
           Support
           Margin
           Time to revenue
           Customer base
     New types of engagement & exposure
         Liability
         IP leakage to the market
         Support for new foundry eco-systems

 It is a long, long road to IP business !!
                                                “The road to Paradise is Long and Straight but
                                                has no speed limit signs. At the end of the road
                                                you end up in that big parking lot in the sky”




                                                Confidential Information                           7

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The long road to IP commercialization

  • 1. The long road to IP commercialization 20th IP-SoC Conference December 7th 2011; Grenoble Philippe Quinio Jean-Luc Jaffard Confidential Information
  • 2. About the Authors… Group Vice-President IP Sourcing & Strategy Telecom engineer, MBA Former management consultant Multiple jobs at ST in Strategic Planning, Marketing, Finance and Technology Sourcing JL Jaffard Ph Quinio Director Intellectual Property Business Unit Semiconductor engineer Multiple jobs at ST in R&D, Marketing and Advanced Technology Sourcing Confidential Information 2
  • 3. IPs at IDMs: Make, Re-Use or Buy? Performance IP performance exceeds spec (over-engineering) Requirements Specification Risk Risk vs Cost trade-off Cost Confidential Information
  • 4. Typical Cost vs Risk trade-off Analysis in IP Worse Better Confidential Information 4
  • 5. IP Out-licensing vs Support Effort Potential reuse/out-licensing Support Effort Central Team Product Organisation Design profile System profile Foundation Mid Complexity High Complexity Sub-System Standard cells Mid Resolution Video Codec Image Signal Low speed IF ADC/DAC RF Processing LDO PLL µ Core & Tools GPS High Speed I/F High Res/ Speed Modem Memories AD/DAC Graphic Confidential Information 5
  • 6. The IP Support Challenge: IDM vs IP Provider Product A Customer Product B Customer Product C IP Customer IDM Provider Product D Customer Prodcut E Customer Product F Customer Limited number of Unlimited number of internal customers customers IP optimization per Support Optimization internal customer & application Confidential Information 6
  • 7. The Long Road…  For an IDM deciding to move to IP business means:  An alternative source of revenues & profit  Increases R&D ROI  A new business model  Support  Margin  Time to revenue  Customer base  New types of engagement & exposure  Liability  IP leakage to the market  Support for new foundry eco-systems  It is a long, long road to IP business !! “The road to Paradise is Long and Straight but has no speed limit signs. At the end of the road you end up in that big parking lot in the sky” Confidential Information 7