Semiconductor Type:
ASICs
Application-Specific Integrated Circuits (ASICs) are custom chips optimized for a narrow set of tasks. They trade flexibility for efficiency and performance, dominating in networking, storage, baseband, vision, and many embedded functions. Unlike FPGAs, ASIC logic is fixed at tape-out, but offers superior power, area, and cost at scale.
Why ASICs
- Maximum performance per watt for a defined workload
- Lower unit cost at volume vs FPGA/CPU/GPU alternatives
- Hardened security and safety properties
- Deterministic latency and throughput
Common ASIC Domains
- Networking & Switching: Ethernet switch ASICs, routers, NPUs
- Storage & Compression: RAID, erasure coding, video codecs
- Baseband & Modems: 5G/6G PHY/MAC, satellite comms
- Vision & Imaging: ISP pipelines, feature extraction
- Security & Crypto: Offload engines, HSM appliances
- Payment & Identity: EMV, secure elements when generalized
Representative Vendors / Examples
| Vendor | Domain | Product Example | Notes |
|---|---|---|---|
| Broadcom | Networking | Trident / Tomahawk / Jericho | Datacenter/ISP switching and routing silicon |
| Marvell | Networking / Storage | OCTEON, Prestera | Custom ASIC and ASSP leadership |
| Intel (Barefoot) | Programmable Switch | Tofino | P4-programmable pipeline with ASIC-class perf |
| Ambarella | Vision / Imaging | CVflow SoCs | Camera/ADAS vision ASICs |
| Huawei / Qualcomm | Baseband | 5G modem ASICs | High integration, tight power budgets |
Design & Supply Chain Considerations
- Non-recurring engineering (NRE) costs and verification dominate early phases
- EDA toolchains and IP licensing (SerDes, DDR, PCIe, PHYs) drive schedules
- Advanced nodes require EUV, advanced packaging, and tight DFM/DFT
- Multi-die (chiplet) architectures reduce risk and improve yield
Build vs Buy Decision
- Pick ASIC when workload is stable at scale and unit volumes justify NRE
- Prefer FPGA or GPU when algorithms change rapidly or volumes are modest
- Hybrid path: prototype in FPGA, then harden to ASIC once stable
Market Outlook
ASICs will continue to power the invisible backbone of networking, storage, and communications, while custom silicon resurges across hyperscalers and OEMs seeking differentiation and TCO control.