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iSTART-TEK Makes Significant Progress in Royalties Contracting

By November 11, 2022January 9th, 2023No Comments

Along with the continuous evolution of semiconductor processes, the chip design complexity and difficulty have increased. Therefore, IC design companies can purchase mature and reliable IPs from IP suppliers to realize specific functions and create a wide range of chip appearances. In addition, the IP modules provided by IP suppliers can shorten the chip design and development cycles, and reduce the chip design and development costs, leading to IC design companies’ increasingly demands for IPs.


iSTART-TEK explained that silicon intellectual property (SIP, also known as IP) is the intellectual property of IC design. The concept of IP originates from copyrights such as patent certificates and source codes of product designs. After definition, validation and design, it can be used to implement specific functions. If an IC design company needs to develop a new chip, they do not need to design the entire chip from scratch. Instead, they can purchase IP modules from suppliers, and add new or specific functions to the modules. In this way, the IC design process can be streamlined, and it is why the IP industry is crucial to the IC design industry.


As the leading provider of EAD tools and customized IPs, iSTART-TEK specializes in memory testing and repair technologies, and is an important partner of many domestic and international IC design companies. iSTART-TEK’s customized IPs possess unique, innovative and patented memory testing and repair technologies. Along with real-time technical support, the company can provide low-power-consumption, low-cost and high-performance solutions for the entire IC product development cycle, from design to mass production.


iSTART-TEK stated that the revenues of IPs are mainly from license fees and royalties. The higher the proportion of royalties in revenues, the more stable the contribution to overall revenues will be. However, it takes time and technology to stack up royalty contracts. iSTART-TEK’s unique customized IPs have established the company’s market position in memory testing and repair solutions, and many well-known IC design companies have signed contracts with royalties with iSTART-TEK. Under the strong demands in the IP market, the proportion of royalty contracts in iSTART-TEK’s overall contracts has also significantly increased in 2022, with royalties accounting for 20% of the annual contracts. In the future, it is expected to drive the steady and upward growth of iSTART-TEK’s revenues.


iSTART-TEK is dedicated to providing more flexible and diverse customized services to IC design and design service companies, ultimately creating maximum values through royalties.