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

Description

The US Application-Specific Integrated Circuits (ASIC) Market is forecast to grow at a CAGR of 7.07%, attaining USD 8.934 billion in 2030 from USD 6.3504 billion in 2025.

US Application-Specific Integrated Circuits (ASIC) Market Key Highlights

• The increasing proliferation of artificial intelligence (AI) and generative AI (Gen AI) applications directly fuels demand for custom, high-performance ASICs over commercial off-the-shelf components.
• The US government's CHIPS and Science Act of 2022 is a primary catalyst, appropriating over $52 billion in subsidies and tax credits to incentivize the domestic construction of fabrication plants (fabs), directly improving supply chain resilience and increasing domestic ASIC manufacturing capacity.
• The Data Centers & Cloud Computing sector is the most aggressive adopter, driven by the imperative for power efficiency and performance density, which only purpose-built ASICs can deliver at scale.
• Geopolitical tensions have crystallized the US's dependence on East Asian fabrication, particularly Taiwan, for advanced node logic chips, creating significant vulnerability that ASICs designed on domestic process nodes aim to mitigate.
• Market competition at the leading-edge nodes (7nm, 5nm, and below) is intensifying, with major US-headquartered firms like Marvell pioneering 2nm platforms to secure leadership in accelerated infrastructure silicon.

The US Application-Specific Integrated Circuits (ASIC) market is undergoing a structural shift, moving away from generalized silicon architecture toward highly customized solutions. This transition is not merely incremental but is fundamentally driven by the exponential compute and power efficiency demands originating from next-generation data infrastructure. The economic significance of this shift is underscored by the fact that US firms already command approximately half of worldwide semiconductor revenue, with IC design being a particular strength. The national imperative to secure and localize advanced semiconductor technology, particularly in the wake of recent supply chain disruptions, frames the current market dynamics, ensuring a concerted industrial and governmental response to bolster domestic capacity and reduce reliance on fragile global supply chains.

US Application-Specific Integrated Circuits (ASIC) Market Analysis

Growth Drivers

The surge in demand for accelerated computing platforms acts as the principal driver for the US ASIC market growth. The escalating scale of AI/ML models in data centers necessitates silicon solutions that offer superior power efficiency and lower latency than traditional CPUs or GPUs. ASICs, being optimized for a specific workload, directly address this requirement. This trend directly increases demand for full-custom and standard cell-based ASICs by large hyperscale cloud providers and AI firms, as they seek to vertically integrate their hardware stack to gain a competitive edge. Furthermore, the mandatory need for high-speed, long-reach SerDes and advanced packaging technology in these accelerators pushes designers toward the most advanced process nodes (5nm, 3nm, and 2nm), creating a critical market for US-based design firms specializing in complex digital and mixed-signal IP.

Challenges and Opportunities

The primary market challenge is the substantial financial barrier to entry and the escalating cost of design at advanced nodes. The estimated cost for a 3nm fab exceeds $20 billion, an outlay that concentrates manufacturing capacity among a few global foundries. This high capital expenditure creates an operational constraint for new entrants and intensifies the competitive advantage for established players. However, this challenge simultaneously presents an opportunity, particularly for US-based design houses, to capitalize on the complexity of advanced technology. The opportunity lies in accelerating the adoption of semi-custom and programmable ASICs within mid-tier and specialized end-users (e.g., Industrial & IoT, Healthcare). These customers require application-specific performance without the full-custom ASIC's non-recurring engineering (NRE) costs and protracted development cycles, thereby diversifying and broadening the overall market profile.

Raw Material and Pricing Analysis

ASICs are physical products, making the raw material supply chain a critical factor in pricing dynamics. The semiconductor manufacturing process relies heavily on materials like high-purity silicon wafers and specialized gases, the fabrication of which is geographically concentrated. Fluctuations in the cost of these inputs directly impact the final price of the ASIC. For instance, the US Department of Commerce has noted the need for more domestic sources of bare wafers, gases, and wet chemicals. Pricing for ASICs themselves is determined less by raw material spot prices and more by the escalating NRE costs associated with design complexity and the specific process node chosen. Advanced node ASICs (e.g., 3nm) command significantly higher prices due to the exponentially greater photomask and design costs, which the end-customer must absorb, effectively restricting the adoption of leading-edge technology to high-volume applications like AI accelerators.

Supply Chain Analysis

The US ASIC supply chain remains heavily bifurcated: the US maintains a dominant global share in chip design, Electronic Design Automation (EDA), and Core IP, but relies on the Indo-Pacific region for the vast majority of wafer fabrication. In 2021, the Indo-Pacific, including the US, housed 1,215 of the world's 1,470 confirmed wafer fabrication facilities. A critical choke point is Taiwan, which holds approximately 92% of the world's most advanced chip manufacturing capacity. This dependency introduces geopolitical risk and logistical complexity, evidenced by the global chip shortage that shaved an estimated $240 billion off US GDP in 2021. Logistical complexity is compounded by the lengthy and specialized nature of the ASIC production cycle, requiring materials to traverse multiple highly specialized production hubs globally for fabrication, assembly, testing, and packaging (ATP).

Government Regulations

In-Depth Segment Analysis

By Process Technology: 3 nm and below

The 3nm and below process nodes represent a new technological frontier, exclusively driven by the most advanced compute workloads, predominantly Data Centers & Cloud Computing and select high-performance defense applications. This segment of the market is defined by the absolute necessity for maximal transistor density and power efficiency, which translates directly into lower operational expenditure (OPEX) for hyperscale cloud providers. Specifically, the architectural shift toward the integration of neural processing units (NPUs) and custom accelerators, requiring billions of transistors to execute AI models efficiently, has propelled demand. The move to these nodes is an economic imperative for market leaders, as the performance-per-watt advantage over older nodes is the fundamental differentiator in a highly competitive cloud services landscape. The introduction of 2nm platforms, such as those announced by Marvell, demonstrates the industry's commitment to continuously migrating custom ASIC designs to the most advanced process nodes to secure computational and energy efficiency leadership.

By Application: Data Centers & Cloud Computing

The Data Centers & Cloud Computing segment is the single most important demand vector for high-performance ASICs. This sector's growth is driven by the unparalleled growth of data processing requirements from AI, machine learning training, and inference workloads. Hyperscale operators are shifting away from general-purpose processors to full-custom ASICs—often referred to as 'AI accelerators'—to achieve optimal computational throughput and power management. Unlike standard silicon, these ASICs are architected specifically for the data center environment, enabling superior performance density per rack unit. The direct consequence of this strategy is the massive, high-volume orders for custom silicon that fuel the financial models for advanced node fabrication. The continuous need for lower latency interconnects and specialized I/O processing within these massive clusters ensures that demand for performance-optimized ASICs in this segment will remain robust and technologically aggressive.

Competitive Environment and Analysis

The US ASIC market's competitive landscape is defined by the co-existence of large, established Integrated Device Manufacturers (IDMs) and smaller, highly specialized fabless ASIC design firms. The former leverage massive R&D budgets and established customer relationships across multiple end-user markets (Automotive, Data Center), while the latter differentiate through agility, niche IP, and expertise in complex, cutting-edge node design. Competition centers on who can deliver the fastest time-to-market for a fully verified ASIC design at the most advanced nodes (e.g., 3nm, 2nm).

Marvell

Marvell is strategically positioned as a leader in "accelerated infrastructure silicon," explicitly targeting the high-growth Data Centers & Cloud Computing segment. Their focus is on high-speed connectivity (SerDes, interconnects) and custom compute accelerators, making them an indispensable partner for hyperscale cloud providers designing proprietary ASICs. Marvell’s strategy leverages close foundry partnerships to pioneer advanced nodes, exemplified by the announcement of their 2nm platform, which directly addresses the market's need for maximum performance and power efficiency in AI infrastructure. Their product portfolio is therefore centered around foundational IP and full system-on-chip (SoC) design that supports the backbone of next-generation data infrastructure.

Onsemi

Onsemi’s strategic focus is heavily skewed toward intelligent power and sensing technologies, particularly for the Automotive and Industrial & IoT end-user segments. Their competitive strategy centers on vertical integration and providing a complete power and analog solution, where their ASICs are designed for high reliability and optimal power management in harsh operating environments, such as electric vehicle (EV) power trains and factory automation. The acquisition of Vcore power technology intellectual property from Aura Semiconductor further solidifies their position by enhancing their power management portfolio and roadmap to address the complete power tree in AI data center applications, extending their influence beyond their traditional strongholds.

Recent Market Developments

• September 2025: Onsemi agreed to acquire rights to the Vcore power technologies, including associated intellectual property (IP) licenses, from Aura Semiconductor. This strategic deal is intended to enhance Onsemi's power management portfolio and roadmap, specifically accelerating its vision to address the complete power tree in AI data center applications, from grid to core.
• August 2025: Marvell unveiled the industry's first 2nm 64 Gbps bi-directional die-to-die (D2D) interface IP. This product launch is critical for next-generation XPUs, offering over three times the bandwidth density of equivalent UCIe interfaces, aiming to significantly boost performance while reducing power and silicon area for customers developing custom accelerators.
• March 2024: Marvell announced the industry's first 2nm platform for accelerated infrastructure silicon, extending its collaboration with TSMC. This development provides foundational IP and building blocks for cloud-optimized custom compute accelerators, Ethernet switches, and other devices essential for powering AI clusters and next-generation data centers, thus establishing early design leadership at the most advanced node.

US 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
    • Standard Cell-Based ASIC
    • Gate-Array Based ASIC
  • Programmable ASIC
  • Others
• BY APPLICATION
  • Consumer Electronics
  • Automotive
  • Networking & Telecommunications
  • Data Centers & Cloud Computing
  • Healthcare
  • Industrial & IoT
  • Defense & Aerospace
  • Others

Table Of Contents

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. USA 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. USA APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY PRODUCT TYPE

6.1. Introduction

6.2. Full-Custom ASIC

6.3. Semi-Custom ASIC

6.3.1. Standard Cell-Based ASIC

6.3.2. Gate-Array Based ASIC

6.4. Programmable ASIC

6.5. Others

7. USA APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASIC) MARKET BY APPLICATION

7.1. Introduction

7.2. Consumer Electronics

7.3. Automotive

7.4. Networking & Telecommunications

7.5. Data Centers & Cloud Computing

7.6. Healthcare

7.7. Industrial & IoT

7.8. Defense & Aerospace

7.9. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Faraday Technology Corporation

9.2. ASIX Electronics Corporation

9.3. IC'Alps

9.4. Tekmos Inc.

9.5. Marvell

9.6. Socionext Inc.

9.7. Open Silicon

9.8. Vervesemi Microelectronics

9.9. Aion Silicon

9.10. Alchip Technologies

9.11. Onsemi

9.12. Infineon Technologies

10. APPENDIX

10.1. Currency

10.2. Assumptions

10.3. Base and Forecast Years Timeline

10.4. Key benefits for the stakeholders

10.5. Research Methodology

10.6. Abbreviations

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Faraday Technology Corporation

ASIX Electronics Corporation

IC’Alps

Tekmos Inc.

Marvell

Socionext Inc.

Open Silicon

Vervesemi Microelectronics

Aion Silicon

Alchip Technologies

Onsemi

Infineon Technologies

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