Semiconductors are everywhere — from our mobile phones to our cars and fridges — and will play a crucial role in the evolution of 5G technology, electric and autonomous vehicles, cloud storage and ‘the Internet of Things’, where many different electrical devices are connected. To respond to an ever-expanding data demand from consumers and businesses, there is a critical need for faster and more reliable connectivity.
Alphawave believes it can develop this technology more cost effectively than internal design teams in large semiconductor firms. It claims it is the only pure high-speed connectivity IP provider focused on transmission speeds of up to 112 gigabits per second. It is also developing 224 gigabits per second solutions.
Alphawave is looking to expand into new technology and key regions such as Asia. It also aims to grow recurring revenues via a customer subscription model. The license and royalty fees it receives for every chip sold based on its designs are already very profitable and cash generative.
According to AJ Bell, despite the coronavirus pandemic, global semiconductor sales rose 5% in 2020 to a high of $430bn. The investment platform expects that further economic growth, increased silicon content per unit in cars, mobile phones and data servers, could fuel 8% higher global sales in 2021. The semiconductor IP market is expected to grow at a compound annual growth rate of around 5.5% by 2025, Research and Markets suggests.