IC Design Services – A Key Driver in the Global Semiconductor Surge

Amid the semiconductor boom fueled by artificial intelligence (AI), IC design services have become a core segment, providing support across logic, physical, IP, packaging, and testing stages.

According to TrendForce, the top 10 global IC design companies generated USD 249.8 billion in 2024 revenue, marking 49% year-on-year growth.

This indicates that IC design firms are no longer limited to standard chip products — they are moving toward custom AI and HPC solutions, which demand premium IP, advanced packaging, and strong system-level design capabilities.

However, TrendForce warns that as more IC designers enter the ASIC and AI accelerator space, profit margins for traditional design services are tightening due to rising competition and clients’ growing preference for in-house development.

Implications for IC Design Firms and Legal Consultants

• IC designers must define their core strengths — whether standard designs or custom/ASIC AI solutions — as this determines both business model and value capture.

• Design service contracts should clearly define IP ownership, packaging/chiplet support, and performance responsibilities — all increasingly important in AI-driven design projects.

• Given the margin pressures, companies should consider strategic partnerships and proprietary IP development rather than relying solely on outsourcing.

IC design services are entering a “premium service” phase — moving beyond layout design toward comprehensive AI and system-level solutions, with higher technical requirements and value creation. Service providers and advisors must recognize this shift to seize opportunities amid the AI wave.

Sources:

• “Global Top 10 IC Design Houses See 49% YoY Growth in 2024, NVIDIA Commands Half the Market,” TrendForce, Mar 17 2025.

• “CSPs’ ASIC Push Sparks Competition Among IC Designers, Margins Under Pressure,” TrendForce, Nov 3 2025.