ASIC market alive and well

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30 June 2004 News

In spite of what some market analysts might believe, In-Stat/MDR reports that the application-specific IC (ASIC) market is alive and well, and will continue to prosper in the future, albeit at a slower pace than history would have dictated. The high-tech market research firm finds that product differentiation is responsible for this market's health, and while design starts in customer-specific, cell-based design segment of the ASIC market will flatten out and decline somewhat in the future, revenues will continue to grow. However, structured ASIC and user-programmable logic (UPL) design starts will continue their upward trend, without slowdown in the future.

"All in all, when all the elements, or in this case design methodologies, are accounted for, design starts, for the overall ASIC market, will continue to slowly increase, ie, the upsides will more than equalise the downsides," says Jerry Worchel, a principal analyst with In-Stat/MDR.

"The customer-specific, MOS cell-based market will continue to find use across a wide spectrum of applications, ranging from relatively low volumes of high-complexity and high cost products, to high and very high volumes of lower-complexity and low cost products. While the classic MOS cell-based design methodology will continue to dominate ASIC market revenues throughout the forecast period, it will steadily be losing ground to two other ASIC design alternatives; user-programmable logic and structured ASICs, along with its associated variety of family members," he said.

In-Stat/MDR also found that the worldwide merchant market dollar consumption of customer-specific, cell-based designs, independent of complexity and/or functionality, is forecast to grow from $6782,5m in 2003 to $10759,6m by 2008, translating to a forecast growth rate between 2003 and 2008, of 9,7%. It also believes that between The Americas, Europe, Japan and Asia Pacific, Asia Pacific will be the most dynamic region, while Europe will be the most static.

www.instat.com

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ASIC market alive and well

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