The foremost drivers for the ASIC chip market are the increasing development in chip technology, growing demand for customizable ICs, and increasing use in consumer electronic devices. An emerging trend, which has a straight impression on the dynamics of the industry, comprises advanced 7-nm technology for ASIC fabrication and structured ASICs for AI, 5G, cloud, and edge workloads and the development of ultra-small case size capacitors for portable electronic devices.
An application-specific integrated circuit (ASIC) is a type of integrated circuit that is particularly built for a precise purpose or application. Compared to a standard logic integrated circuit or programmable logic device, chips can also be made smaller and use less electricity. However, the disadvantage of this circuit is that it can be expensive to manufacture and design, predominantly if only a limited number of units are needed. An ASIC can be found in practically any electronic device, and its uses range from sound conversions to custom rendering of images.
The rise in demand for ASICs has seized the attention of technology giants such as AMD, NVIDIA, and Intel. ASICs intend to disrupt traditional CPU and GPU markets. One prominent example of ASIC's effect on AI processing is Google's TPU v4 supercomputer. By integrating ~4,000 TPUs with optical circuit switching, the company managed to intensify its speed tenfold while substantially reducing energy consumption. This breakthrough was made possible by the prominent changes in the interconnect topology of the system enabled by Google's private optical circuit switches. The TPU v4 supercomputer showcases the potential of ASICs in AI development and sets the stage for future developments. The arrival of ASICs in AI processing represents a novel development, one that has the potential to restructure the AI landscape. With their supreme speed and efficiency, ASICs provide a tailor-made solution for precise tasks, making them a perfect choice for comprehensive processing workloads. ASICs will play a substantial role in determining the future of AI.
The ASIC chip market is segmented based on type, application, and geography. By type, the ASIC chip market is divided into full custom, semi-based custom, and programmable logic devices. Based on application, the ASIC chip market is divided into data processing systems, consumer electronics, telecommunication systems, medical instrumentation, and others. Geographically, the ASIC Chip market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
The full custom segment is expected to achieve significant CAGR during the forecast period 2022-2030. These ICs deliver improved speed and reliability while consuming a lesser amount of electrical power. Designers benefit from the ability to customize layouts, logic cells, circuits, and mechanical structures and optimize memory cells on the IC, which reduces processing time and mitigates risks. Nevertheless, the manufacturing period for full custom ASICs is relatively longer, taking about eight weeks for a precise application, as opposed to semi-based custom ASICs.
In 2022, the consumer electronics segment held a considerable global market share. This segment is projected to present lucrative growth projections for all stakeholders within the value chain, principally driven by the rising utilization of ASICs in tablets, smartphones, and laptops worldwide. ASICs offer numerous advantages, including IP security, low power consumption, enhanced bandwidth, and compact size, which is driving their adoption in consumer electronics manufacturing. Additionally, rapid developments in electronic devices have aided energy efficiency and heightened stability, further driving the growth of the ASIC chip market. Beyond the consumer electronics vertical, these ICs find widespread applications across numerous sectors, including telecommunications and medical.
The Europe market is anticipated to record significantly fast revenue growth during the forecast period. This is owing to the increasing demand for ASICs in industrial automation. Furthermore, the increasing use of autonomous and electric vehicles, as well as the growing demand for machine vision and robotics in industrial automation, is anticipated to drive the ASIC chip market growth.
The Asia Pacific market is estimated to account for a significantly large revenue share during the forecast period. This is owing to the rising demand for ASIC chips in consumer electronics and telecommunications applications. The North America market is anticipated to account for a substantial revenue share during the forecast period. This is due to the expanding demand for high-performance computing solutions in sectors such as automotive, telecommunications, aerospace, and defense. In addition, the region's concentration of noteworthy semiconductor manufacturers and the rise in demand for upcoming technologies, such as 5G, are other factors driving the ASIC Chip market growth.
The regional trends and factors influencing the ASIC Chip Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses ASIC Chip Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 15.02 Billion |
| Market Size by 2030 | US$ 24.42 Billion |
| Global CAGR (2022 - 2030) | 6.3% |
| Historical Data | 2020-2022 |
| Forecast period | 2022-2030 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The ASIC Chip Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the ASIC Chip Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Texas Instruments; Bitmain Technologies Ltd.; Infineon Technologies; Advanced Micro Devices, Inc.; Nvidia Corporation; Xilinx, Inc; Taiwan semiconductor manufacturing; Samsung Electronics Co. Ltd.; On semiconductor; and Intel Corporationare among the players operating in the ASIC chip market. Several other major companies have been analyzed during this research study to get a holistic view of the ASIC chip market ecosystem. Prominent players operating in the ASIC chip market comprise companies that are proactively emphasizing on research and development (R&D) initiatives to gain a competitive advantage in the market.
The ASIC chip market players highly adopt inorganic and organic strategies. Following are a few major ASIC chip market developments:
The List of Companies - ASIC Chip Market
The ASIC chip market are expected to reach US$ 24.42 billion by 2030.
Integration of Advanced Technologies such as Artificial Intelligence (AI) and Internet of Things (IoT) is the key driver of the ASIC chip market.
The ASIC chip market was estimated to be valued at US$ 15.02 billion in 2022 and is projected to reach US$ 24.42 billion by 2030; it is expected to grow at a CAGR of 6.3% during the forecast period.
Growing focus on product development and technological advancement is expected to drive the growth of the ASIC chip market in the coming years.
Asia Pacific is anticipated to grow with the highest CAGR over the forecast period.
The key players holding majority shares in the ASIC chip market include ON Semiconductor Corporation, TSMC, Intel Corporation, Infineon Technologies, and Texas Instruments.
The semi-based custom segment led the ASIC chip market with a significant share in 2022 and it is also expected to grow with the highest CAGR.