Application-Specific Integrated Circuits (ASIC) Market - Forecasts From 2025 To 2030

Application-Specific Integrated Circuits (ASIC) Market Size:

The Application-Specific Integrated Circuits (ASIC) market is anticipated to witness significant growth during the projected period.

Application-Specific Integrated Circuits (ASIC) Market Trends:

The Application-Specific Integrated Circuits (ASICs) market is experiencing strong growth due to the transformation of digital infrastructure. Other factors leading to the market are rising computational demands and the increasing need for efficiency and specialisation across industries. Finance, telecommunications, artificial intelligence, and consumer electronics are becoming more data-intensive, and  ASICS are gaining popularity. The advantages of ASICs are that they offer speed, performance, and power savings. It makes ASICs an essential in environments like algorithmic trading platforms, AI model inference engines, and 5G networks.  Financial institutions are also using ASICs to increase speed, security, and energy efficiency in their operations. In blockchain technology.ASICS are used to power the cryptographic computation. Additionally, there is an increase in the development of task-specific ASICs for IoT devices, smart appliances, and autonomous systems.

Application-Specific Integrated Circuits (ASICs) Market Overview & Scope:

The Application-Specific Integrated Circuits (ASICs) market is segmented by:

• Process Technology:  Leading-Edge Nodes holds a significant share of the Application-Specific Integrated Circuits (ASIC) market. This is due to 5nm technology can deliver superior performance, higher transistor density, and improved energy efficiency. 5nm technology is being used to make custom ASICs for advanced capabilities.5nm node supports more compact chip designs, which allows manufacturers to pack more features into smaller devices
• Product Type: Full Custom ASICs hold a significant share of the Application-Specific Integrated Circuits (ASIC) market. This is due to their ability to deliver highly optimised performance tailored to specific applications. Full custom ASICs are ideal for use in advanced technologies such as artificial intelligence, machine learning, 5G, and automotive electronics.
• End User: Consumer electronics hold a significant share of the Application-Specific Integrated Circuits (ASIC) market. This is due to the increase in demand for high-performance, energy-efficient, and compact semiconductor solutions. Products such as smart TVs, tablets, wearables, and gaming consoles rely on ASICs for functionality.
• Region: The Asia-Pacific Application-Specific Integrated Circuits (ASIC) market is experiencing strong growth. This is due to rapid industrial digitalisation and expanding consumer electronics demand. Another factor leading to the market growth is increasing investments in advanced technologies such as AI, 5G, and IoT.

Top Trends Shaping the Application-Specific Integrated Circuits (ASIC) Market:

• Increasing Adoption of AI-Optimised ASICs: A trend in the Application-Specific Integrated Circuits (ASIC) market is the increase in adoption of AI-optimised ASICs for machine learning, deep learning, and edge computing applications. These ASICs offer higher performance and energy efficiency compared to GPUs or CPUs.
• Shift Toward Advanced Process Nodes- Another significant trend is the shift toward advanced process nodes. ASICs have started using nodes like 7nm and 5nm for performance, power efficiency, and smaller die sizes. This is particularly evident for sectors like 5G, AI, and IoT.
• Growth in FPGA-to-ASIC Conversion- FPGA designs are converted to ASICS to reduce costs and improve power efficiency in high-volume applications. This is particularly happening in aerospace, defense, and industrial markets. In these, ASICs provide enhanced security and reliability.

Application-Specific Integrated Circuits (ASIC) Market Growth Drivers vs. Challenges:

Drivers:

• Rising Demand for AI and Machine Learning Applications: One of the key drivers of the Application-Specific Integrated Circuits (ASIC) market is the rising demand for AI and machine learning applications. ASICs are the chips capable of performing complex computations with high speed and minimal energy consumption, which are the necessities of machine learning applications. According to UNCTAD estimates, the AI market is expected to grow from $189 billion in 2023 to $4.8 trillion by 2033, showing a 2400% increase in a decade. AI could also increase its share in the global frontier technology market from 7 per cent to 29 per cent.
• Growth in 5G and IoT Technologies: Another key driver of the ASICS market is the global rollout of 5G technologies and the rise in connected IoT devices. ASIC serves the requirements of 5G networks like ultra-low latency, high-speed data transmission, and energy efficiency. ASICs are increasingly deployed in sensors, gateways, and embedded systems. According to 5G Americas, in April 2025, there were 2.25 billion connections worldwide. At the year-end of 2024, the United States and Canada collectively accounted for than 182 million 5G connections, showing a 20% year-on-year increase from 2023.

Challenges:

• High Development Cost: One of the major challenges of the Application-Specific Integrated Circuits (ASIC) market is the high development cost. This high cost is associated with the design, verification, and manufacturing of custom ASICs. There is a huge investment required in R&D, EDA tools, IP licensing, and foundry service for developing an ADIC for advanced nodes like 7nm or 5nm. This creates a hindrance for smaller companies and startups to enter the market. The high cost of development limits the ability of small companies to compete with established companies.

Application-Specific Integrated Circuits (ASICs) Market Regional Analysis:

• North America: North America’s Application-Specific Integrated Circuits (ASIC) market is experiencing growth because of a rise in demand for high-performance computation. Other factors driving the market are the increasing adoption of AI and machine learning applications and the expansion of the cryptocurrency mining industry. ASICs are custom-designed chips that offer superior speed, more energy efficiency, and better performance. In the United States, the demand for ASICs is increasing, especially in sectors like data centres, autonomous vehicles, telecommunication, and finance. The growing popularity of blockchain technology has further boosted the ASICs market.

Application-Specific Integrated Circuits (ASIC) Market Competitive Landscape:

The market has many notable players, including. Faraday Technology Corporation, ASIX Electronics Corporation, IC’Alps, Tekmos Inc., Marvell, Socionext Inc., Open Silicon, Vervesemi Microelectronics, Aion Silicon, Alchip Technologies, Onsemi, Infineon Technologies, among others

• Product Launch: In January 2025., Infineon announced the launch of EiceDRIVER isolated gate driver ICs for traction inverters in electric vehicles.  The devices are suitable for IGBT and SiC technologies, and they also work with Infineon's new HybridPACK™ Drive G2 Fusion module
• Launch: In April 2025, Cyient announced the launch of its subsidiary, Cyient Semiconductors. This was done to improve innovation and excellence across the global semiconductor landscape. Cyient Semiconductors will be focused on scaling Application-Specific Integrated Circuit (ASIC) turnkey solutions.

Application-Specific Integrated Circuits (ASIC) Market Segmentation:

By Process Technology

• Advanced Nodes
  • 3 nm and below
• Leading-Edge Nodes
  • 5 nm
  • 7 nm
• Mid-Range Nodes
  • 10 nm
  • 12 nm
  • 14 nm
  • 16 nm
• Mature Nodes
  • 22 nm and above

By Product Type

• Full-Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
• Others

By Application

• Consumer Electronics
• Automotive
• Networking & Telecommunications
• Healthcare
• Others

By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Others

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. Application-Specific Integrated Circuits (ASIC)   Market by Process Technology

5.1. Introduction

5.2. Advanced Nodes

5.2.1. 3 nm and below

5.3. Leading-Edge Nodes

5.3.1. 5 nm

5.3.2. 7 nm

5.4. Mid-Range Nodes

5.4.1. 10 nm

5.4.2. 12 nm

5.4.3. 14 nm

5.4.4. 16 nm

5.5. Mature Nodes

5.5.1. 22 nm and above

6. Application-Specific Integrated Circuits (ASIC) Market BY Product Type

6.1. Introduction

6.2. Full-Custom ASIC

6.3. Semi-Custom ASIC

6.4. Programmable ASIC

6.5. Others

7. Application-Specific Integrated Circuits (ASIC) Market by Application

7.1. Introduction

7.2. Consumer Electronics

7.3. Automotive

7.4. Healthcare

7.5. Networking & Telecommunications

7.6. Others

8.  APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. United Kingdom

8.4.2. Germany

8.4.3. France

8.4.4. Italy

8.4.5. Spain

8.4.6. Others

8.5. Middle East & Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. India

8.6.3. Japan

8.6.4. South Korea

8.6.5. Taiwan

8.6.6. Thailand

8.6.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Faraday Technology Corporation

10.2. ASIX Electronics Corporation

10.3. IC’Alps

10.4. Tekmos Inc.

10.5. Marvell

10.6. Socionext Inc.

10.7. Open Silicon

10.8. Vervesemi Microelectronics

10.9. Aion Silicon

10.10. Alchip Technologies

10.11. Onsemi

10.12.  Infineon Technologies

11. APPENDIX

11.1. Currency

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology

11.6. Abbreviations

Faraday Technology Corporation

ASIX Electronics Corporation

IC’Alps

Tekmos Inc.

Marvell

Socionext Inc.

Open Silicon

Vervesemi Microelectronics

Aion Silicon

Alchip Technologies

Onsemi

 Infineon Technologies