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Chip IP

September 14, 2004

We have noticed a trend towards fewer and fewer VC investments in chip companies. Now, Gartner Dataquest voices its opinion that there will be a 40% reduction in the number of chip vendors during the next ten years. “Escalating costs have reached a tipping point,” said Gartner’s Jim Tully, speaking at a semiconductor conference in San Francisco. “Some will go out of business, a larger number will be acquired, and a still larger number will become intellectual property vendors,” Tully said. By 2014, Tully predicts, the number of semiconductor vendors will have decreased to near parity with the number of IP companies.
Read – Estimated 40% of IC makers will disappear, says Gartner [EE Times]

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