When semiconductor chip companies develop their designs, a critical
decision they have to make is whether to create it entirely from their
technology or ‘buy-in’ parts of it. Imagination’s 25+ year history in the
semiconductor IP space has shown us that when chip companies are
undertaking this “make or buy” decision, the total cost figure they
come up with will typically be out by a factor of between two to five
times. The primary reason behind this is that they are not making a
like-for-like comparison between the make and buy options. While they
look at the upfront investment, they fail to consider the total cost of
ownership, which is made up of both the direct and indirect costs and
benefits over a longer period.