South Korea Leads the Way in Semiconductor Intellectual Property

Domestic Demand Drives Early Success

In the early 2000s, the South Korean government launched initiatives like the VLSI (Very Large Scale Integration) Program to accelerate the growth of the domestic IP industry. Major conglomerates invested in building internal IP development teams and also acquired foreign startups to supplement their portfolios. The captive local demand proved invaluable for road testing and commercializing IP locally before approaching multinational clients.

Samsung's extensive in-house chip manufacturing gave it early adopter customers for homegrown IP. It established Samsung Electronics Design Center (SED) to monetize IP and has grown to become one of the largest IP vendors globally. Korean chipmakers likewise turned to local IP suppliers like Intelis and IP Axiom for memory controller IPs used in DRAM and NAND flash chips produced in huge volumes. Such massive local consumption helped Korean IP companies gain the design wins and industry credibility needed for overseas sales.

Expanding Overseas Reach

By the late 2000s, Korean IP vendors were well-established domestic leaders with proven track records. They began efforts to expand exports, tapping relationships with international fabless companies and foundries. Initiatives like the Global IP Project provided funding to translate IP to foreign standards and manufacture test chips to qualify the IP for global customers. Tax incentives were offered for overseas IP sales.

South Korea Leads the Way in Semiconductor Intellectual Property - https://www.coherentmi.com/blog/south-korea-leads-the-way-in-semiconductor-intellectual-property-124