Utility of Reuse - 3rd party IP
Easy integration is desirable for all segments
3rd party IP:
- Profits = fixed_charge_per_design X design_wins + (royalty)
- royalty = royalty_per_design X design_volume
- Since principle source of revenue comes from fixed charges per design, 3rd party IP companies are more highly dependent on design wins than are semiconductor companies, thus they are even more motivated to make integration easy.
- Lower NRE costs lower the barriers to utilizing 3rd party IP. More design_wins means more fixed charges. More charges, more profit.