FROM EDN EUROPE: Restructure the costs of IP-based design
By Graham Prophet -- EDN, April 1, 2004
Munich-based mixed-signal-IP (intellectual-property) provider Xignal is proposing a new business model, called VIC (Virtual IC), to companies with product ideas that require complex ASICs. With VIC, instead of providing its IP for a conventional licence-fee/royalty payment, Xignal aims to become involved in product definition and development earlier and more comprehensively than in a standard IP deal. Xignal, in effect, takes a view on the likely success of a product and a share in its risks and becomes involved in product development rather than just silicon IP. It forgoes upfront charges for a higher royalty-based return on each product sold. (Xignal says that the level of royalty depends on the deal but mentions a figure of 20% on gross margin.) You get the rights to manufacture the product, Xignal retains any new IP developed, and you can launch your project having invested less upfront capital.
Xignal has specialised in complex analogue and mixed-signal IP blocks, with sales into high-speed serial-data-link products, ADSL, and other fast/high-resolution products. Functional blocks are at the level of DACs, ADCs, PLLs, and more integrated ASIP (application-specific IP) for complete signal-processing functions. Xignal's specific expertise is in high levels of analogue integration.
Xignal, +49 17 39836282, www.xignal.com.
