[Research Report] The ASIC chip market size was valued at US$ 15.02 billion in 2022 and is expected to reach US$ 24.42 billion by 2030; it is projected to record a CAGR of 6.3% from 2022 to 2030.

Analyst Perspective:

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.

ASIC Chip Market Overview:

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.

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ASIC Chip Market: Strategic Insights

Market Size Value in	US$ 15.02 billion in 2022
Market Size Value by	US$ 24.42 billion by 2030
Growth rate	CAGR of 6.3% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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ASIC Chip Market Driver:

Integration of Advanced Technologies such as Artificial Intelligence (AI) and Internet of Things (IoT)

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.

ASIC Chip Market Segmental Analysis:

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.

ASIC Chip Market Regional Analysis:

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.

ASIC Chip Market Report Scope

ASIC Chip Market Key Player Analysis:

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.

Recent Developments:

The ASIC chip market players highly adopt inorganic and organic strategies. Following are a few major ASIC chip market developments:

• In September 2022, Infineon Technologies AG announced the launch of a new product line of OptiMOS 5 IPOL buck regulators with I2C/PMBus digital interfaces and VR14-compliant SVID for network ASICs/FPGAs and Intel/AMD server CPUs. These devices, which are housed in a 5 x 6 mm2 PQFN package, are a fully integrated, simple, and extremely efficient solution for next-generation storage, server, telecom, and datacom applications, as well as distributed power systems.