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IPecosystem™: Assessing Risks and Hidden Costs

By Lisa Tafoya
Vice President Global Research
FSA


Much has been debated in the press recently about the future of the semiconductor intellectual property (IP) business model. Among the issues cited as most dire are revenue models and quality. Revenue models are directly linked to a company's long-term competitive business strategy, and the ability to earn revenue and be profitable in the IP business is obviously based on the quality and performance of the IP.

It's clear that whether purchasing IP from a third-party vendor or developing it internally, there are inherent risks that result in hidden costs. What often remains unclear is what and where those hidden costs lie. For example, if a mask set re-spin is required due to poor IP quality or performance, the average cost of a re-spin is estimated at $1.3M for 90nm and $1.9M for 65nm, according to In-Stat estimates. Based on industry acknowledged costs, the total IP ecosystem cost is often more than twice the explicit cost of the IP itself (Figure 1):

Hidden IP Costs Figure

Figure 1. Hidden IP Costs

As a result, FSA has focused on developing tools that enable the semiconductor supply chain to improve overall IP quality, reduce the hidden costs within the IP ecosystem and improve IPs manufacturability in semiconductor designs. More and more IP is being outsourced than ever before, and designers are increasing their reliance on third-party IP to solve complex design problems. Simultaneously, increasing complexity is complicating transactions, making IP more difficult to integrate and support. Although the availability of third-party IP is critical to the continued growth of the outsourced business model, there are many aspects about IP that remain problematic.

There are explicit and hidden costs throughout the ecosystem, especially at interface points between different groups and companies, which becomes more challenging as IP core performance and complexities increase and as process technologies advance.

FSA believes the outsourced ecosystem can reduce the total cost of IP integration through structured, low-cost IP qualification. This includes establishing risk profiles and modeling techniques for IP and IP functionality in designs.

To address this concern, FSA has developed an IPecosystem™ Tool Suite, designed to provide engineering and business guidance for hard IP risk assessments. The goal is to provide companies purchasing IP with a more efficient means of integrating and utilizing IP. FSA's IPecosystem™ Tool Suite enhances a company's internal capability by enabling the creation of a best practices approach to define a strong communication link between the IP vendor, integrator and foundry. It provides a base set of questions that enable information exchange under a password-protected and a secure encryption methodology between IP vendor and integrator and integrator and foundry to produce a risk profile at the four major IP junctures: pre-purchase, licensing, technology and manufacturability risk assessment.

The tool assumes information is exchanged between companies under a non-disclosure agreement and is designed to be used as part of a broader evaluation of IP, rather than to be used exclusively in making a final decision.

FSA's Hard IP Quality Risk Assessment Tool, the first tool introduced in the Suite, consists of a set of questions for categories of IP interaction that communicate the quality aspects of an IP core, and it develops a risk profile for integrators to evaluate the quality of the IP. This can be applied to its original focus of third-party IP, or can be used for evaluating internally developed IP for reuse in other designs. In addition, it allows both integrators and vendors to compare all of their IP to an industry best practices baseline for quality.

The Tool has been built around a workflow process, allowing for flexibility and customization. The Tool gathers information about an IP vendor's design methodology, foundry qualification and details about specific IP. The questions are focused on IP families, making it less time-consuming for the vendor to complete and easier for the integrator to weight specific factors.

By answering a series of questions, the integrator can generate a risk profile that focuses on seven categories for evaluation. These include (Figure 2):

  • IP Design
  • IP Integration
  • IP Verification
  • Process Technology
  • Product Documentation
  • Reliability
  • Test

Risk Profile Example With Seven Categories Figure

Figure 2. Risk Profile Example With Seven Categories

FSA is pleased to announce version 3.0 of the Hard IP Risk Assessment Tool today. Version 3.0 includes a number of enhancements, most notable being the partnership between FSA and Chip Estimate, who will carry the tool on its website to freely allow integrators and IP vendors to seamlessly request and communicate the risk profiles globally and effortlessly. Key enhancements making the biggest impact in version 3.0 include:

  • Custom Questionnaire - A custom questionnaire has been added that allows vendors to add unique questions pertaining to specific IP. Likewise, the integrator can ask questions of the vendor. Those questions can also be weighted for specific factors. This is a valuable benefit to vendors, as it allows them to emphasize qualities about a specific IP family to an integrator. Integrators benefit from the additional due diligence they can perform by asking customized questions for their intended usage.
  • Answer Verification - A new filter has been added to the Integrator's Hard IP Summary page, allowing an answer to be verified. This new feature makes it easier for vendors and integrators with long-term relationships to add a yes/no confidence level, which is reflected in the bar chart.
  • Feedback Button - The feedback loop has been enhanced, allowing integrators to provide detailed feedback directly to the vendor. It also packages the risk profile and Hard IP Summary with custom weightings with the feedback, These enhancements will be quite valuable in aiding the vendor for additional improvements to its IP.
  • Chip Estimate Collaboration - FSA has collaborated with Chip Estimate to bring greater value to the industry with its IPecosystem™ tools. Vendors now have an option to upload their Hard IP Quality Risk Assessment Tool risk profiles to Chip Estimate's IP portal (Figure 3). In addition, Chip Estimate users will have the option to request a vendors risk profiles or request that a vendor complete the FSA Hard IP Quality Risk Assessment Tool for their IP or family of IP within their portfolio.

FSA's Hard IP Quality Risk Assessment Tool Figure

Figure 3. View of FSA's Hard IP Quality Risk Assessment Tool on ChipEstimate.com's portal

The second tool in the Suite focuses on Licensing. It has been documented that the IP licensing period can take up to 22 weeks. This new industry tool will shorten this time period by creating efficiencies for IP purchasers. It features a set of questions that every integrator needs to ask to understand the IP licensing risk before entering into a licensing agreement. Licensing will be included in version 4.0, planned for delivery by November 2007.

The Quality and Licensing tools focus on selecting an IP vendor based on evaluating the quality risk involved with various IP offered and then moving to the licensing process to assess the licensing risk an integrator is willing to accept before acquiring the desired IP.

The Technology and Manufacturability tools will focus on identifying the risks involved with producing a design with the acquired IP at various nodes with different foundries. These two efforts will initiate on September 12, 2007 at FSA's Supplier's Expo at the IP Subcommittee meeting at Santa Clara Convention Center at 12:30pm (Great America Meeting Room 2). Everyone is welcome to participate.

The Technology tool will feature a set of questions that focuses on PDKs, models, lithography and OPC issues, etc. to determine the technological enablement and readiness of the IP under evaluation. The Manufacturability tool will feature a set of questions that identifies a risk profile to ensure the chip designed with the IP will manufacture at yield in a timely manner at the lowest possible cost.

As the leading semiconductor association focused on the outsourced business model, FSA represents the entire outsourced design ecosystem for semiconductors from fabless companies and IDMs to IP and EDA vendors to foundries, packaging and test, and many others. FSA's mission is to accelerate the growth and increase the return on invested capital of the global semiconductor supply chain by promoting an environment for innovation. FSA accomplishes this by identifying and articulating industry challenges and providing a non-competitive platform for collaboration between these ecosystem partners to identify solutions.

This mission serves as the motivation for creating and giving this IPecosystem™ Tool Suite to the industry free of charge without licensing agreements and without desire to influence transactions between various players in the industry. It is a means to educate, address the IP challenges proactively and positively, and improve the invested capital in the semiconductor ecosystem globally.

Search for IP with FSA Risk Profiles here.

About the Author

With FSA since January 2001, Lisa Tafoya serves as FSA's Vice President of Global Research. She brings more than 16 years of experience in market research and marketing communications to her role in FSA. Ms. Tafoya performs the strategic planning and oversees the implementation of all FSA reports, surveys and deliverables. She oversees all data collection and analysis, as well as global publications created and distributed by FSA. In addition, Ms. Tafoya is responsible for FSA's subcommittees worldwide, managing their strategic focus and overseeing the deliverables, including FSA's IPecosystem™ Tool Suite, MS/RF Spice Model Checklists and PDK Checklists, as well as the Standard Foundry Process Qualification Guideline (now a standard under JEDEC), as well as researching and addressing technology and business challenges in the semiconductor industry. Ms. Tafoya is also co-author of an FSA book, Understanding Fabless IC Technology, published by Elsevier Publishing in 2007.


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