PUBLISHER: KBV Research | PRODUCT CODE: 1448098
PUBLISHER: KBV Research | PRODUCT CODE: 1448098
The Global ASIC Chip Market size is expected to reach $35.5 billion by 2030, rising at a market growth of 8.2% CAGR during the forecast period.
The ever-growing demand for smartphones and tablets is a key driver for the consumer electronics segment. Thus, the consumer electronics segment acquired $2,683.1 million in 2022. ASICs are used in these devices for various functions, including signal processing, graphics rendering, and power management, contributing to enhanced performance and efficiency.
The major strategies followed by the market participants are Partnerships & Collaborations as the key developmental strategy to keep pace with the changing demands of end users. For instance, In Feb 2024, Intel Corporation signed a collaboration with Wipro to accelerate the development of advanced and innovative chip designs. Additionally, In, Jul 2022, Intel Corporation came into partnership with MediaTek to manufacture chips, leveraging the advanced process technologies offered by Intel Foundry Services (IFS).
Based on the Analysis presented in the KBV Cardinal matrix; Samsung Electronics Co., Ltd. and Taiwan Semiconductor Manufacturing Company Limited are the forerunners in the ASIC Chip Market. In Mar 2021, Samsung Electronics Co., Ltd. and Marvell Technology, Inc to accelerate the advancement of high-impact 5G solutions that provide a competitive advantage to their operators. Companies such as Texas Instruments, Inc., NVIDIA Corporation, and Infineon Technologies AG are some of the key innovators in Market.
Market Growth Factors
ASICs are known for their high performance and efficiency in specific applications. As industries demand faster and more specialized processing capabilities, ASICs are preferred to meet these performance requirements. Thus, these factors can assist in the growth of the market.
Additionally, ASICs can be designed to accelerate the computations commonly involved in AI and ML tasks, such as matrix multiplications and convolutions. This targeted optimization results in significantly higher performance than general-purpose processors that may not be as well-suited for these specific workloads. Therefore, these factors can assist in the growth of the market.
Market Restraining Factors
The substantial upfront costs associated with ASIC (application-specific integrated circuit) design and development can be a significant barrier for smaller companies or projects with limited budgets. Thus, owing to these factors, there will be reduced demand for ASIC chips in the coming years.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
By Type Analysis
Based on type, the market is segmented into semi-custom ASIC, programmable ASIC, and full custom ASIC. In 2022, the programmable ASIC segment garnered 18% revenue share in the market. Programmable logic devices, especially FPGAs, provide great flexibility and customization.
By End User Analysis
On the basis of end user, the market is divided into data processing systems, consumer electronics, telecommunication systems, aerospace subsystem & sensors, medical instrumentation, and others. The data processing systems segment recorded 34.2% revenue share in the market in 2022.
By Regional Analysis
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment acquired 39% revenue share in the market. The Asia Pacific region, particularly countries like China, Japan, South Korea, and Taiwan, has been at the forefront of technology adoption and innovation.
The ASIC chip market is fiercely competitive across multiple sectors, including cryptocurrency mining, artificial intelligence, networking, and emerging technologies. Companies like BITMAIN Technologies Holding Company and Taiwan Semiconductor Manufacturing Company Limited vie for dominance in cryptocurrency mining, while tech giants such as NVIDIA, Intel, and Samsung Electronics Co., Ltd. compete vigorously in AI, networking, and telecommunications.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global ASIC Chip Market Report Segmentation
By Type
By End User
By Geography