News & Analysis
China Fabless: VeriSilicon touts shift to design lite
Junko Yoshida
9/4/2012 5:50 PM EDT
Strength
VeriSilicon's strengths lay in its foundry neutrality (VeriSilicon works with SMIC, IBM, Grace Semiconductor, Taiwan Semiconductor Manufacturing Co. and Globalfoundries); in its speedy design work (Dai claims that the company tapes out one chip a week and can ramp up one product a month); and in its turnkey service for custom silicon solutions.
It also provides a SoC/SiP platform-based IP portfolio.
Ever since it acquired ZSP division from LSI logic in 2006, VeriSilicon has leveraged an embedded DSP core to offer single-core HD audio solutions and a suite of certified HD audio software. Dai claims that more than 50 percent of standalone Blu-ray players are ZSP-based. VeriSilicon’s SoC platforms range from multimedia (HD audio) to wireless (3G/4G/WiMax/LTE/TD-LTE) to speech.
Its other claim to fame is Hantro Video IP. The Finnish video hardware manufacturer of video for mobile devices is now a part of Google, which selected VeriSilicon to be strategic partner for Hantro IP.
VeriSilicon now finds itself in a position to integrate, customize and support Hantro Video IP for both chip customers and systems companies through IP licensing or turnkey service, said Dai. Under the Google partnership, VeriSilicon has already licensed Hantro Video IP to 25 semiconductor companies including several top chip makers.
Dai’s ambition for VeriSilicon doesn't stop at multimedia apps-centric SoC/SiP platforms. It is diversifying into new areas ranging from RF-related platforms for a LED lamp controller SoC to mixed signal platforms for power line communication and network over coaxial cable. SoCs for apps like smart sensors and meters are also being targeted.
Dai, who knows China and Silicon Valley inside out, strives to build his company by combining the best of the both worlds. Hence, VeriSilicon is by no means your typical China fabless vendor, nor is it a "one trick pony" but rather a business built to “be scalable with its flexible turnkey business model,” Dai said. While building a large IP portfolio, the company also hopes to make its business “repeatable” based on application-centric SoC platforms, he added.
VeriSilicon has already gone through five rounds of funding and could go public in 2013. Nowhere near as big as Marvell Semiconductor, co-founded by Dai’s sister, Weili, Wayne Dai’s ambitions remain big. For example, VeriSilicon’s Shanghai office recreates the huge aquarium in Marvell’s spacious Santa Clara lobby. The difference is that VeriSilicon’s aquarium consists of four large LCD panels, and all the tropical fish are virtual.
Comparing this to his sister’s aquarium, Dai chuckled and said, “Obviously, this isn’t as big as the fish tank at Marvell. But then, we don’t have to feed the fish.”
Or clean up after them, either.
Related links and stories:
-New Semi Model: Fabless and Designless
-Awinic, China fabless, flourishes by mimicking Huawei work ethic
-Apexone: Here comes muPad from Shanghai
-How Leo Li led Spreadtrum’s turnaround
-Four reasons why its 'game over' for foreign chip firms in China
-Why China?
VeriSilicon's strengths lay in its foundry neutrality (VeriSilicon works with SMIC, IBM, Grace Semiconductor, Taiwan Semiconductor Manufacturing Co. and Globalfoundries); in its speedy design work (Dai claims that the company tapes out one chip a week and can ramp up one product a month); and in its turnkey service for custom silicon solutions.
It also provides a SoC/SiP platform-based IP portfolio.
Ever since it acquired ZSP division from LSI logic in 2006, VeriSilicon has leveraged an embedded DSP core to offer single-core HD audio solutions and a suite of certified HD audio software. Dai claims that more than 50 percent of standalone Blu-ray players are ZSP-based. VeriSilicon’s SoC platforms range from multimedia (HD audio) to wireless (3G/4G/WiMax/LTE/TD-LTE) to speech.
Its other claim to fame is Hantro Video IP. The Finnish video hardware manufacturer of video for mobile devices is now a part of Google, which selected VeriSilicon to be strategic partner for Hantro IP.
VeriSilicon now finds itself in a position to integrate, customize and support Hantro Video IP for both chip customers and systems companies through IP licensing or turnkey service, said Dai. Under the Google partnership, VeriSilicon has already licensed Hantro Video IP to 25 semiconductor companies including several top chip makers.
Dai’s ambition for VeriSilicon doesn't stop at multimedia apps-centric SoC/SiP platforms. It is diversifying into new areas ranging from RF-related platforms for a LED lamp controller SoC to mixed signal platforms for power line communication and network over coaxial cable. SoCs for apps like smart sensors and meters are also being targeted.
Corner Office
Wayne Dai in his corner office at VeriSilicon in Shanghai
Dai, who knows China and Silicon Valley inside out, strives to build his company by combining the best of the both worlds. Hence, VeriSilicon is by no means your typical China fabless vendor, nor is it a "one trick pony" but rather a business built to “be scalable with its flexible turnkey business model,” Dai said. While building a large IP portfolio, the company also hopes to make its business “repeatable” based on application-centric SoC platforms, he added.
VeriSilicon has already gone through five rounds of funding and could go public in 2013. Nowhere near as big as Marvell Semiconductor, co-founded by Dai’s sister, Weili, Wayne Dai’s ambitions remain big. For example, VeriSilicon’s Shanghai office recreates the huge aquarium in Marvell’s spacious Santa Clara lobby. The difference is that VeriSilicon’s aquarium consists of four large LCD panels, and all the tropical fish are virtual.
Comparing this to his sister’s aquarium, Dai chuckled and said, “Obviously, this isn’t as big as the fish tank at Marvell. But then, we don’t have to feed the fish.”
Or clean up after them, either.
Related links and stories:
-New Semi Model: Fabless and Designless
-Awinic, China fabless, flourishes by mimicking Huawei work ethic
-Apexone: Here comes muPad from Shanghai
-How Leo Li led Spreadtrum’s turnaround
-Four reasons why its 'game over' for foreign chip firms in China
-Why China?
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junko.yoshida
9/5/2012 12:04 AM EDT
Do you agree that "Design Lite" is a way to go for your project? If so, why?
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docdivakar
9/6/2012 12:31 PM EDT
Junko, much of what VeriSilicon is offering is also done by many Indian design services companies... but with one major difference -foundry liaisons where VeriSilicon has a clear advantage of being in China. This would not have figured prominently if the Indian government was not dilly-dallying about tax breaks for semi fab investments (that has been going on for five years now!)... but that is another story! Perhaps Peter Clarke can chime in?
MP Divakar
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AnySilicon
9/5/2012 1:32 AM EDT
The concept of Design-lite services exist for many years and used by the the major companies in the US.
One vendor that explains this model in a nice video is OpenSilicon CEO: http://www.youtube.com/watch?v=aEDZV_yoAFg
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junko.yoshida
9/7/2012 7:39 PM EDT
Thanks for posting the video link, AnySilicon. Naveed, OpenSilicon CEO, speaks very concisely and clearly of the essence of design lite concept. Very well done.
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casual3
9/5/2012 3:01 AM EDT
Design-lite can be afforded only by tier-1 system companies, this is due to the fact that Taiwan's Faraday marks up the IC turnkey cost by 60% (for over 40% gross margin), thus enabling companies like VeriSilicon to grab some market share.
For fast evolving markets like tablet, such design-lite scheme does not work. This can be seen from China's top 3 tablet AP vendors: Allwinner, Rockchip and AMLogic. Allwinner goes from almost zero to close to 50% market share in China in a year because it designs most of its IPs in-house and has a much better turn-key solution than competitors. If you outsource like Rockchip used to be, you lose the competitiveness and market share.
Still, design-lite is good for niche SoC markets where incumbents enjoy 90% gross margin (like certain video/image multimedia SoC).
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sprite0022
9/5/2012 9:04 PM EDT
this guy's sister Weili is quite a hoax, after some research...
it' s hard to tell how much she depend on her husband CEO for success but forget to mention the CEO husband's credit isn't nice.
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junko.yoshida
9/5/2012 9:09 PM EDT
Hi, Sprite0022. We appreciate your posting comments, but we do not share your view about Weili Dai. Weili, together with Sehat Sutardja, CEO of Marvell, have built Marvell. They are a genuine team. There's a story on IEEE Spectrum that details their journey:
http://spectrum.ieee.org/semiconductors/design/sehat-sutardja-an-engineering-marvell/0
Hope you will have a chance to read it and change your opinion.
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ippisl
9/6/2012 9:07 AM EDT
The story mostly details the husband contribution(which seems major and quite interesting) and says little about the wife contribution to marvell(mainly marketing).
And we get the impression that marvell's success is mostly due to engineering(maybe because it's spectrum - a newspaper for engineers).
Reading a bit more about dei, i don't get some impression that she's a marketing wizard.
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docdivakar
9/6/2012 12:22 PM EDT
Junko, ditto! It seems like @sprite0022 has an axe to grind! Perhaps one should remind here that IEEE doesn't associate with hoaxes!:
http://www.eetimes.com/electronics-news/4395301/Lofgren-hails-Silicon-Valley-patent-office
Marvell as a hitech company is quite an accomplishment in the Silicon Valley. There are mixed reviews about work environment in the company. But its accomplishments would not have been possible without motivated employees contributing!
MP Divakar
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JAK620
9/6/2012 11:45 AM EDT
Regarding the photo of the break room, I agree that it looks good on picture. But I highly suspect its utilization. The difference between a break room in the Silicon Valley and that of VeriSilicon is that VeriSilicon's break room is empty.
Also if you look at the clock on the wall, it is showing a -2 hour time difference between Shanghai and Taipei, and a +1 hour time difference between Shanghai and Tokyo. It is totally wrong. If you have been to the area, it is common sense that Taipei and Shanghai are in the same time zone while Tokyo is one hour ahead. Not that this matters but cannot help to notice this fail.. LOL
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sprite0022
9/6/2012 8:23 PM EDT
ok, to be fair Weili is somewhere between HTC's cher wang and melinda Gates.
about exactly how much a co-founder she is will remain a mystery... for us.
her husband knows .. everything, but I bet he won't mind if she lies or exaggerates somewhere.
to prove her skill , she better head up a business on her own and show a clean picture to other ppl. but she might never do it since there is tons of excuses...
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sprite0022
9/6/2012 9:16 PM EDT
it's common sense that close relatives should not work in the same dept etc. If they do it's legitimate for people to doubt their credentials.
maybe only someone naive like Junko will believe everything from their mouths.
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