Application Specific Integrated Circuits (ASICs) Market Global industry share, growth, drivers, emerging technologies, and forecast research report 2030

The latest market report published by Credence Research, Inc. “Global Application Specific Integrated Circuits (ASICs) Market: Growth, Future Prospects, and Competitive Analysis, 2022 – 2030. The global demand for application specific integrated circuits (ASIC) was valued at USD 15.2 Billion in 2022 and is expected to reach USD 23.32 Billion in 2030, growing at a CAGR of 5.5% between 2023 and 2030.

Application Specific Integrated Circuits (ASICs) represent a pivotal frontier in the electronics sector, designed expressly to perform a particular function in contrast to general-purpose integrated circuits. As the digital age has matured, the demand for tailored electronic solutions has surged, propelling the ASIC market into prominence. ASICs are at the heart of many devices we use daily, from smartphones and IoT devices to high-performance computing systems and automotive electronics. One driving force behind this market’s exponential growth is the burgeoning need for energy-efficient devices. With ASICs, manufacturers can optimize power consumption, giving rise to devices that are both efficient and performant.

Additionally, the rise in end-user applications such as Artificial Intelligence (AI), Machine Learning (ML), and blockchain technology has led to a surge in demand for high-speed ASICs, as these fields often require intensive data processing capabilities. However, the ASIC landscape isn’t without its challenges. The cost of designing and fabricating these chips is high, particularly as the technology scales down in size, making them a significant investment. Fabless companies, those that design but don’t manufacture their chips, collaborate with foundries for production, emphasizing the importance of this symbiotic relationship in the market’s ecosystem. Leading players like NVIDIA, Qualcomm, and Broadcom, among others, are constantly innovating, aiming to leverage the capabilities of ASICs to gain a competitive edge. In summary, the ASIC market, with its immense potential and inherent challenges, epitomizes the relentless pace of technological advancement in the modern era.

Application Specific Integrated Circuits (ASICs) Market Dynamics-

1. Drivers:

Customized Solutions: ASICs, by their very nature, are designed for specific applications, enabling manufacturers to achieve optimized performance and functionality tailored to specific tasks, ensuring efficient operation.

Energy Efficiency: ASICs are often more energy-efficient than their general-purpose counterparts. As energy conservation becomes a pressing concern, the demand for energy-efficient chips is surging.

Technological Advancements: The rise of AI, ML, 5G, blockchain technology, and IoT has significantly driven the demand for ASICs due to their ability to cater to specialized requirements.

2. Restraints:

High Initial Costs: The design and fabrication of ASICs entail high initial costs, particularly for advanced nodes. This can be prohibitive for startups or smaller companies.

Inflexibility: Once an ASIC is designed, changes cannot be made without incurring additional costs and time. This contrasts with solutions like Field Programmable Gate Arrays (FPGAs) which are reconfigurable.

3. Opportunities:

Emerging Industries: As sectors like autonomous vehicles, smart cities, and augmented reality continue to evolve, the demand for specialized chips like ASICs is anticipated to rise.

Miniaturization: As technology trends toward smaller devices with greater capabilities, the demand for compact and efficient ASICs is bound to grow.

4. Challenges:

Rapid Technological Changes: The pace of technological evolution can sometimes render ASICs obsolete quickly, given their application-specific nature.

Complex Design Process: As technologies evolve, designing ASICs becomes more intricate, necessitating skilled professionals and advanced tools.

Dependency on Foundries: Fabless design firms depend on a limited number of foundries for production, making them susceptible to production constraints and price fluctuations.

5. Trends:

Integration with AI and ML: ASICs designed specifically for AI and ML tasks, like Google’s Tensor Processing Units (TPUs), are on the rise.

Shift to Advanced Nodes: As the semiconductor industry progresses, there’s a trend towards smaller nodes, which offer enhanced performance and efficiency.

Browse 245 pages report Application Specific Integrated Circuits (ASICs) Market By Technology Type (Digital ASICs, Analog ASICs, Mixed-Signal ASICs, RF ASICs) By Design Complexity (Low Complexity ASICs, Medium Complexity ASICs, High Complexity ASICs) – Growth, Future Prospects & Competitive Analysis, 2016 – 2030)

Partnerships and acquisitions play a crucial role in the Application Specific Integrated Circuits (ASICs) market. These strategies help companies expand their expertise, gain access to new technologies, and enhance their market positioning.


  • Strategic Alliances with Foundries: Many ASIC companies that operate on a fabless model enter into partnerships with foundries like TSMC, GlobalFoundries, or Samsung to manufacture their designs. This allows them to focus on design while leveraging the production capabilities of established foundries.
  • Collaborations for Technological Advancement: ASIC designers often partner with tech giants or startups that are pioneers in a specific domain, like AI or IoT, to co-develop ASICs tailored for these applications. For instance, Google’s partnership with its TPU (Tensor Processing Unit) producers is crucial for its AI initiatives.
  • Licensing Agreements: Some ASIC companies enter into licensing partnerships to utilize certain proprietary technologies in their chips. ARM’s business model is a classic example where it licenses its chip designs to numerous ASIC producers.


  • Expanding Technical Portfolio: Acquisitions often serve as a strategy for companies to incorporate new technologies into their offerings. For example, NVIDIA’s proposed acquisition of ARM is aimed at bolstering its capabilities in the ASIC market, especially for IoT and edge devices.
  • Market Share & Clientele Growth: By acquiring smaller competitors or startups with innovative solutions, larger ASIC companies can rapidly expand their market share and customer base.
  • Operational Synergies: Acquisitions can lead to operational efficiencies by integrating supply chains, merging R&D teams, or accessing better manufacturing capacities.
  • Diversification: Established players sometimes acquire businesses in adjacent markets to diversify their portfolios. This helps them mitigate risks associated with their core market and explore growth in new domains.

A few notable acquisitions in the ASIC space over the past years include:

  • AMD’s acquisition of Xilinx: This acquisition, announced in 2020, is geared towards strengthening AMD’s position in the data center, automotive, and telecom spaces, among others.
  • Marvell’s acquisition of Avera Semiconductor: A move to boost Marvell’s ASIC capabilities, allowing the company to offer a comprehensive suite of product architectures.
  • Intel’s acquisition of Altera: While Altera is primarily known for FPGAs, the acquisition also aids Intel in the ASIC space, given Altera’s experience in producing ASIC-class products using FPGAs.

The ASIC market is constantly evolving, and partnerships and acquisitions serve as critical levers for companies to remain competitive, innovate, and expand their horizons. Given the market’s complexity and the rapid pace of technological advancements, such strategic moves will likely continue to shape the industry’s future.

Why to Buy This Report-

  • The report provides a qualitative as well as quantitative analysis of the global Application Specific Integrated Circuits (ASICs) Market by segments, current trends, drivers, restraints, opportunities, challenges, and market dynamics with the historical period from 2016-2020, the base year- 2021, and the projection period 2022-2028.
  • The report includes information on the competitive landscape, such as how the market’s top competitors operate at the global, regional, and country levels.
  • Major nations in each region with their import/export statistics
  • The global Application Specific Integrated Circuits (ASICs) Market report also includes the analysis of the market at a global, regional, and country-level along with key market trends, major player analysis, market growth strategies, and key application areas.

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