ASIC design starts to halt decline, says iSuppli

		www.cmpnet.com The Technology Network

ASIC design starts to halt decline, says iSuppli
By Spencer Chin , EE Times
Aug 31, 2004 (5:00 PM)
URL: http://www.eetuk.com/bus/news/showArticle.jhtml?articleID=46200394

MANHASSET, N.Y. — The protracted decline in design starts in ASICs (Application-Specific Integrated Circuits) will reverse itself over the next year as the demand for structured ASICs grows, according to market research firm iSuppli Corp. (El Segundo, Calif.)

The firm said in a report that ASIC design starts will fall from 1,796 in 2003 to 1,770 this year, but inch back up to 1,785 in 2005 and 1,805 the following year. They will begin to decline afterwards.

iSuppli attributed the projected short-term comeback to increasing design starts for structured ASICs as those devices establish a foothold in the market.

Much of the long-term decline in ASIC design starts has resulted from technological progress, such as increasing levels of chip integration that have also improved performance, raised value content, and reduced bill of materials costs. However, the emergence of alternative solutions, such as ASSPs (Applications-Specific Standard Products), has also been a factor, iSuppli said.

As ASIC starts have fallen and alternative design technologies have mushroomed, choices for design teams have become more complicated.