Market Overview
The China semiconductor IP market size reached USD 1,021.79 Million in 2025 and is projected to reach USD 1,553.03 Million by 2034. It is expected to grow at a CAGR of 4.76% during the forecast period 2026-2034. Growth is driven by the expansion of domestic chip design activities, increasing investments in artificial intelligence and automotive electronics, and strong government support fostering indigenous innovation. Rising complexity in system-on-chip designs and licensing adoption further boost market share.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
China Semiconductor IP Market Key Takeaways
- The China semiconductor IP market size was USD 1,021.79 Million in 2025 and is forecasted to grow at a CAGR of 4.76% between 2026 and 2034.
- Government initiatives like the National Integrated Circuit Industry Investment Fund are fueling indigenous semiconductor innovation.
- The fabless ecosystem expansion in China has led to increased licensing activities and demand for reusable IP cores.
- AI and automotive electronics are driving demand for specialized processor, interface, and memory IP cores.
- Persistent technology gaps and dependence on foreign advanced IP remain key challenges for domestic providers.
- Talent shortage, especially of skilled engineers, constrains market growth despite increased educational efforts.
Sample Request Link: https://www.imarcgroup.com/china-semiconductor-ip-market/requestsample
Market Growth Factors
Government-Led Push for Semiconductor Self-Sufficiency and Indigenous IP Development
China’s semiconductor IP market growth is propelled by a strategic national goal to achieve chip design and manufacturing self-sufficiency, intensified by geopolitical tensions and technology access restrictions. The government’s National Integrated Circuit Industry Investment Fund (Big Fund) has committed billions of dollars to promote local semiconductor enterprises, including IP providers. Funding targets R&D, talent cultivation, and infrastructure, enabling Chinese IP providers to compete with Western vendors. Regional governments offer incentives like tax breaks and subsidies, fostering startups and enterprises focused on indigenous IP development. In October 2024, the Big Fund entered its third phase with a record fundraising target exceeding 300 billion yuan, underscoring the continued momentum in building China’s semiconductor ecosystem.
Rapid Expansion of Fabless Ecosystem and Increased Licensing Activity
China’s growing fabless semiconductor industry, with more than 3,000 design houses as of 2024, drives robust demand for licensed semiconductor IP cores. Fabless firms prioritize licensing to accelerate development and tackle design complexity, integrating modular IP blocks into system-on-chip products to shorten time-to-market and reduce costs. Additionally, design service providers offering customized IP solutions fuel licensing and royalty revenue growth. The increasing complexity of semiconductor designs, stemming from advanced process nodes and heterogeneous integration, compels fabless firms to adopt diverse IP portfolios, including power management and security cores, further expanding market demand.
Surge in Demand for AI and Automotive-Specific IP Solutions
The rise of AI and automotive electrification in China fosters significant opportunities in semiconductor IP. Specialized processor IPs such as neural processing units, GPUs, and AI accelerators cater to machine learning workload requirements across data centers, edge computing, autonomous vehicles, and smart city applications. The automotive sector demands automotive-grade processors, high-speed interface IPs (PCIe, Ethernet), memory controllers, and sensor fusion subsystems to support electric vehicles and advanced driver assistance systems. Notably, BYD announced a strategic partnership in September 2024 with domestic semiconductor firms to co-develop automotive-grade chip IP, aiming to reduce reliance on foreign suppliers and enhance supply chain resilience.
Market Segmentation
Analysis by IP Type
- Processor IP, Interface IP, Memory IP, Others: The report details the market based on IP types, covering processor, interface, memory IP, and other categories, reflecting core semiconductor IP components sourced and licensed domestically.
Analysis by Revenue Source
- Royalty, Licensing, Services: Revenue streams in the market include royalties from IP usage, direct licensing agreements, and associated services that support semiconductor IP lifecycle.
Analysis by IP Core
- Soft Cores, Hard Cores: The market differentiates IP cores into soft cores and hard cores, indicating variations in IP implementation and integration complexities.
Analysis by Application
- IDM Firms, Foundries, Fabless Firms, Others: Semiconductor IP applications cater to Integrated Device Manufacturers (IDMs), foundries, fabless firms, and other industry participants requiring varying IP solutions.
Analysis by End Use Industry
- Consumer Electronics, Telecom, Automotive, Healthcare, Others:** End-user industries consuming semiconductor IP encompass consumer electronics, telecommunications, automotive, healthcare, among others.
Analysis by Region
- North China, East China, South Central China, Southwest China, Northwest China, Northeast China: The report covers regional market dynamics across all major Chinese regions, reflecting geographic diversity in semiconductor IP demand and development.
Request Customization:
https://www.imarcgroup.com/request?type=report&id=44310&flag=E
Regional Insights
The report covers all major regions including North China, East China, South Central China, Southwest China, Northwest China, and Northeast China. These regions contribute diversely to the semiconductor IP market, though no explicit dominant region or regional market share statistics are provided in the source.
Recent Developments & News
- In October 2024, China inaugurated the third phase of the National Integrated Circuit Industry Investment Fund (Big Fund Phase III) with a fundraising target exceeding 300 billion yuan, aimed at boosting indigenous semiconductor capabilities including IP cores and design tools.
- In September 2024, Chinese EV manufacturer BYD announced a strategic partnership with domestic semiconductor firms to co-develop automotive-grade chip IP, enhancing supply chain resilience and reducing dependency on foreign suppliers.
- In July 2024, fabless semiconductor company Unisoc launched a new series of 5G chipsets integrating domestically developed processor and interface IP, marking a milestone in China’s mobile communications ecosystem development.
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Customization Note
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302
