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Industry : Semiconductor Functional Area : Infrastructure
Activity:  3 comments  405 views  last activity : 10 02 2010 14:30:28 +0000
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According to market research company report ,the number of ASIC designs taping out in 2007 has gone down  

A few interesting points from this report report are as follows :

Main Factors for the decline  :

 1. Exponentially increasing cost at leading edge and

 2. strong ASSP offering (which amortizes costs across multiple customers)

Companies pushing leading-edge ASIC designs tend to be in high-performance computing, wired communications, high-end storage, high-end cellular phones and video game consoles.

Also  The average revenue per design and the average units per design continue to rise, resulting in overall growth in ASIC revenue.

 Designers in China are not using leading edge technologies; hence contribute to slowing of the overall ASIC start-ups’ decline.This also leads to China representing a market with ASIC growth potential.

And  more ASIC design starts are predicted in Asia-Pac

As the decline is continuing for 5-6 years . Now question is :

Is there any life left in the ASIC market?

The answer is  “yes.”, due to the following reasons:

1.  Inspite of overall decline in ASIC design starts, overall revenue is increasing. Big players like Cisco, Nortel and other major OEMs continue to use ASICs for differentiation

2.  While FPGAs have improved in their race to catch up (and substitute) ASICs, the gap still remains. Structured ASICs have tried to fill this gap but have had a mixed response from the industry and market. Till the industry figures out a way to address this gap, ASICs and FPGAs will co-exist

3. The big ASIC players have come up with various approaches to revive this ASIC market. like IBM , toshiba etc.

 
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3 comments on "Decline in ASIC design starts"
  Commented by  shah rukh, B.Tech/B.E. student, MJCET    | 10 02 2010 14:30:28 +0000
thanks for the information.. i like it
  Commented by  Rakesh Gadipelli, Hardware Design Engineer, Netlogic    | 06 23 2008 20:13:14 +0000
Thanks for the information....
  Commented by  Dipak Mawale, Senior Executive, Harbinger Knowledge Products    | 06 18 2008 13:35:24 +0000
Thanks for sharing this with us :)
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