From ASIC to SoC: A Paradigm Shift

Report Highlights

• Basic ASICs will show a five year average annual growth rate (AAGR) of 10.8% to reach $18.2 billion in 2007.
• Gate arrays are losing their grip on the ASIC market.
• SoC revenues will have an AAGR of 31.6%, totaling $30.2 billion in 2007.
• Standard cell-based SoCs will grow substantially at a 36% AAGR through 2007.

INTRODUCTION

Over the past several years, the semiconductor industry has been a crucial driver for, and a reflection of, the overall global economic climate. As such, in recent times this industry and its key segments have been followed and assessed quite acutely for trends. The ASIC industry is one of the most dynamic segments of the semiconductor arena and is at the forefront of achieving higher levels of systems-on-silicon integration while reducing the cost and complexity of integrating future design systems. Powerful economic and market forces are fueling high demand for rapid integration and delivery of single-chip solutions. All of which makes it pertinent to comment on current trends (market and technology) as well as assess potential breakthroughs in the near and long-term future.

In this timely report, BCC determines the current status of one of the major semiconductor segments, the traditional applicationspecific integrated circuit (ASIC) segment. It assesses its growth potential over a five-year period from 2002 to 2007. The report additionally focuses on the industry-wide paradigm shift from stand-alone chips and integrated circuits (IC) to integrated systems -on-a-chip (SoC). A significant portion of the study, therefore, delves into the emerging SoC market and its subcategories, including embedded systems, digital signal processors (DSP), electronic design automation (EDA), and pure-play foundries. The major objective is to present a comprehensive analysis of the ASIC/SoC market and its future direction.

In sum, the BCC study reviews the industry’s economic environment, technological issues, applications, market factors and potential, along with projecting shipments for 2002 and 2007. This study will be invaluable to decision-makers, strategists and marketers in companies that manufacture and design semiconductors and electronic devices, or who are distributors, system integrators and OEMs.

SCOPE OF STUDY

This study encompasses

• The major traditional ASIC categories

• Worldwide SoC market, technologies, applications

• New challenges in design methods, automation, manufacturing, technology

• End-use applications - consumer, computing, communications, automotive, military and government, and industrial

• Earket shares and detailed profiles of companies and suppliers

• Each technology’s current market status, impact on future markets and five year forecasts.

INFORMATION SOURCES

BCC sought information from about 75 companies to obtain data for this study. Included were manufacturers of ICs, consumer products, designers and foundries, and users in a variety of industries. In addition, data was compiled from current financial and trade information, and government sources.

ABOUT THE AUTHOR

Ravi Krishnan has over 10 years of professional and research experience in high technology, with a special focus on the semiconductor industry. His experience in this regard includes research analyst and subject matter expert roles at market research firms, Cahners In-Stat Group and Integrated Circuit Engineering Corp. in Scottsdale AZ, and as a High-tech Strategy Consultant for PricewaterhouseCoopers Consulting. Currently, Krishnan is with General Electric Corp. in a technology strategy capacity. He holds an MBA and a graduate degree in Mass Communications, both from the Ariozona State University, and an undergraduate degree in technology from the Birla Institute of Technology & Science, India.