Silicon AnalyticaGlossary · Design/EDA
What is semiconductor IP licensing?
Semiconductor IP licensing means selling ready-made, reusable circuit designs, such as processor cores or interface blocks, that other companies build into their own chips. The seller usually earns a licence fee and then royalties on each chip shipped.
Why it matters for investors
Royalties link a licensor’s revenue to its customers’ shipment volumes and chip prices, often several quarters after a licence is signed.
Investors look at the mix between licence and royalty revenue, royalty rates on newer designs and how widely the IP is adopted across end markets.
Key companies
Related terms
General educational explanation. Information only, not investment advice.