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ay [link widoczny dla zalogowanych], the decreasing length of product cycles force chip companies to exploit industry proven Intellectual Property (IP) blocks and subsystems in their system-on-chip (SoC) designs. In the past, many large vertically integrated chip companies were able to custom design their products from scratch using IP building blocks developed by themselves. End products developed from scratch using in house resources take too much time and money to be competitive in the marketplace, similar to what is happening in many other technology industries. Hence [link widoczny dla zalogowanych], the standard practice for the industry has become: start with standard building blocks and complete with pivotal outsourced differentiating components.
IP suppliers such as ARM? have emerged to help design firms cut down their design cycles by increasing their access to hard IP building blocks. This method has greatly improved productivity, allowing minor designing firms to stay in business designing chips.
The increasing demand for short design cycles has made first-silicon-success more important than ever before. The firm with the broadest access to the most suitable IP blocks gains an advantage with increasingly complex design requirements. The availability of standard IP blocks has rendered customizations from scratch unaffordable.
Traditional ASIC (Application Specific Integrated Circuits) companies face the difficulty of being locked into specific IP, and lack alternatives. The real challenge lies in integrating everything together. It is a major accomplishment to get assorted pieces of building blocks from various suppliers to function in sync. Hence, the Value Chain Producer (VCP) model came into existence with firms providing broader support for building blocks that satisfy the exacting specifications, integration, production and manufacturing savvy, on top of specialized design capabilities.
The VCPs have much experience and knowledge on a wide range of IP and can work together with the customer to choose the best IP blocks from different suppliers and integrate them onto a single chip. This same expertise benefit has worked its way into the design and selection of packaging. Appropriate handling of the relationship between IP and package design becomes increasingly critical as faster and denser designs push power and performance to the limits. Experienced VCPs can provide the best solutions, due to their in-depth understanding of the relationship between package characteristics and IP performance.
A resourceful global process, involving assorted suppliers of design tools [link widoczny dla zalogowanych], equipment, IP, packaging, manufacturing, assembly, and testing operations, is needed to rapidly create a first-class product that is reasonably priced and possesses a high degree of functionality. The goal of the semiconductor VCP firms is to make this complicated value chain easier and more reliable by incorporating the services and solutions provided by a wide array of suppliers and delivering production-ready semiconductor chips at reduced cost, decreased risk, and higher operational flexibility. The VCP model thus allows today's system Original Equipment Manufacturers (OEMs) and Fabless Semiconductor Companies (FSCs) to deliver successful products at low cost and high efficiency.
About the Author:
Milan Leeham, is a semiconductor industry veteran and has been involved with many SoC design projects. He highly recommends working with companies providing ASIC design services using the VCP model for your next SoC project such as ASIC design company.

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