Rise and Fall of New Fabless Startups => New Model for IP/ASSP Collaboration
TM =Rise and Fall of Fabless StartupsNew Model for IP/ASSP CollaborationMarc Miller Sr. Director MarketingDecember 7, 2011
Rise and fall of fabless startups A consistent decrease in the number of fabless startups established since 2000. 2011 reported the lowest number of fabless companies founded since 1981. Fabless companies by year founded Founded 2000 $200M 2010 Tech Bubble Bursts Founded 1995 $400M 2010 Founded 1998 $1B 2010 Founded 1995 $3B 2010 TSMC Founded FSA (Now GSA) Founded High NRE Cost Founded 1991 Founded 1993 $7B 2010 $3B 2010 Source: GSA; Note: Year founded for a number of fabless companies could not be found which may affect results.
1990s: Growth driven by new fabless model FABLESS BUSINESS COLLABORATION IP + MODEL PRODUCES SUCCESS = Jen-Hsun Huang TSMC 2010 Revenue:Founded Nvidia in 1993 Founded in 1987 $3.3 Billion $9B Market Cap + Wilf Corrigan $1M Investment
I want to leverage my IP to create an ASSP business ASSP Volume Business IP Startup Intellectual Property My company has great ? IP Technology I know technology and trends Great Engineers My company has great designers
Your Idea, Your ASSP Obstacles… Standard Cell approach Time to Profits – Time-to-Market P R Time to Volume – Standards are in flux O F Time to Market REVENUE – I TIME $50M is too much T – $5M is too much Design Starts Stable Volume End of Life – $500K is too much First Financial Customer Returns Ship $50M $5M $500K Not Very Practical
Should you partner with a large FPGA company? So….FPGA solution: – But will they co-develop, co-promote, distribute your chips? – Who sets the prices? Are the prices competitive? Selling Co-develop Pricing Large FPGA IP Startup What’s the revenue model?
Your Idea, Your ASSP What’s missing? Powerful, flexible silicon platform with Zero NRE Strong manufacturing, marketing & sales partnership Aggressive pricing at 1 unit or 100K units & great revenue model And a rapid sequence of products…
How do you make the leap to an ASSP business? 2012: ASAPA new business model for IP companies ASSP Volume Business Tabula’s ASAP Program IP Startup + ? =
Spacetime 3D architectural platform Spacetime Advantages vs. FPGA FPGA Tabula 5.0 3.0 2.5 2.0 Memory Logic Memory Price/ Density Density Throughput PerformanceUnmatched capabilities at volume price points
IP + ASAP = A new platform for ASSPs Innovative partnerships will lead to the next wave of growthNumber of ASAP Companies Founded 2000 IDM FABLESS $200M 2010 Tech Bubble Bursts Founded 1995 $400M 2010 Founded 1998 $1B 2010 Founded 1995 $3B 2010 TSMC Founded FSA (Now GSA) Founded High NRE Cost Founded 1991 Founded 1993 $7B 2010 $3B 2010