ASIC / System-on-a-Chip

System-on-a-Chip (SoC) is a method of creating silicon solutions that delivers highly integrated chips for the ASIC markets. Designs with very high complexity are regularly accomplished using this approach.  Revenue for this market will grow from $227.9 billion in 2022 to $250 billion by 2027, a CAGR of 5.6%.  In addition, over the next five years, higher revenues will continue to be driven by the following factors:

The 3rd Party Semiconductor Intellectual Property (SIP) and the System-on-a-Chip (SoC) markets are undergoing good revenue growth as the world continues to move past the COVID-19 pandemic. Headwinds with weakness in global economies and inflation pose some overall concern, but Semico is assuming any economic downturn will not be long or severe. Augmenting these trends is the emergence of Artificial Intelligence (AI) functionality that is being incorporated in many SoCs and applications.

Today's designs are focused on complexity driven by AI functionality and integration of wireless interfaces. They are many times more complex than those from several years ago.  This complexity is driving design costs up to higher levels than the industry has previously seen.

The ASIC design start landscape has changed due to a number of factors, one of which is the increase in NRE costs for complex ASIC designs.  Additionally, companies and silicon designers are still exploring which silicon architectures will be the best fit for applications that include AI. New business models will also be possible using the increased productivity and efficiency brought to business through the introduction of AI capabilities.