The Interface IP market has grown with 21% CAGR from 2017 to 2021 and we review the part of this market restricted to the high-end of PCIe, DDR, Ethernet and D2D IP made of PHY and controller targeting the most advanced technology nodes and latest protocol release. We will show that an IP vendor focusing investment on the high-end interconnect IP can benefit for a very healthy ROI based on a business growing with 75% CAGR for 2022 to 2026. To keep a leading market share on this very demanding IP business, he will have to show the best time to market (TTM) and demonstrate 100% perfect execution. Taking Alphawave as an example, If the company can perfectly execute this strategy, he can grow his IP business from $90 million in 2021 to $600 million or more in 2026.
We have used market information extracted from the “Interface IP Survey & Forecast”, and we have selected the following interconnect protocols and the best technology nodes to focus on, because showing the highest ROI, 7nm, 5nm, 3nm and even lower:
- PCIe 4 and above (PCIe 5, 6…)
- CXL 1, CXL 2, CXL 3
- Ethernet based on 56G SerDes, 112G SerDes, 224G…
- LPDDR5 memory controller
- HBM3 memory controller
We can see that all these protocols support HPC, becoming the segment leader (size and growth) for TSMC in 2022.