According to the report prepared by Gartner analyst Ganesh Gurumurthy, the survey conducted over 40 vendors offering chip design services has revealed that outsourced design projects saw only a marginal increase of 6.5% in 2008 compared to 34% growth in 2007. According to the the report, growth in full-chip and partial design and back-end physical design outsourcing slowed to about 20 percent, 24 percent and 3 percent, down from 27 percent, 38 percent and 52 percent, respectively, in 2007.
Earlier report prepared by gartner in March said that the number of new ASIC projects will drop 22% in 2009 compared to 2008. Lack of visibility, deteriorating business conditions made chip vendors to cut back or postpone new chip designs in third and fourth quarter of 2008. This took toll on chip design service providers and semiconductor IP vendors as they faced delays and cancellations of projects.
Gartner further advised that with a recovery in chip design activity expected starting in the Q4 2009, design service providers should prepare now to invest, especially in engineering resources, to meet a likely surge in demand for design services and support activity.
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