The document discusses the decline in the number of fabless chip startups since 2000 and proposes a new business model called ASAP (A new business model for IP companies) to help address this. The ASAP model involves partnering between an IP startup and Tabula, where Tabula provides the silicon platform, manufacturing, marketing and sales support to help the startup launch application-specific standard products with zero non-recurring engineering costs. This new model could lead to the next wave of growth for fabless startups.
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Rise and Fall of New Fabless Startups => New Model for IP/ASSP Collaboration
1. TM
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Rise and Fall of Fabless Startups
New Model for IP/ASSP Collaboration
Marc Miller Sr. Director Marketing
December 7, 2011
2. 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.
3. 1990s: Growth driven by new fabless model
FABLESS BUSINESS COLLABORATION
IP + MODEL PRODUCES SUCCESS
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Jen-Hsun Huang TSMC 2010 Revenue:
Founded Nvidia in 1993 Founded in 1987 $3.3 Billion
$9B Market Cap
+
Wilf Corrigan
$1M Investment
4. 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
5. 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
6. 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?
7. 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…
8. How do you make the leap to an ASSP business?
2012: ASAP
A new business model for IP companies
ASSP Volume Business
Tabula’s ASAP Program
IP Startup
+ ? =
9. 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 Performance
Unmatched capabilities at volume price points
15. Marketing machine with minimum investment
Product brief, datasheet, posters
Board
Press release and website
Sales training material
Price list
19. IP + ASAP = A new platform for ASSPs
Innovative partnerships will lead to the next wave of growth
Number 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