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Electronics Production | March 19, 2007

Chip design opportunities<br>still fueling market growth

The number of design win opportunities for Application Specific Standard Products (ASSPs) and Application Specific Integrated Circuits (ASICs) may be declining, but there remain tens of billions of dollars of potential in the market, according to iSuppli Corp.
New designs made in 2007 for the consumer electronics and wireless handset segments will account for almost 20 percent of global ASSP/ASIC revenue in 2010. The growth in these markets contrasts with the ongoing overall decline in the number of ASSP/ASIC design wins.

“Overall design-win opportunities for ASSPs/ASICs are falling slightly, but that doesn't mean new semiconductor designs aren't in high demand," said Jordan Selburn, principal analyst for semiconductor design at iSuppli. “Design wins, which will total more than 5,000 this year, are moving to advanced process nodes, such as 65 nanometers. There may be fewer design wins, but there is more revenue per design because of the continued demand for highly functional, highly integrated chips at the heart of next-generation electronic systems ranging from digital cameras to automobiles."

During the next two years, the use of advanced manufacturing processes will increase rapidly, accounting for more than one-third of all ASSP/ASIC designs over that period. On the other side of the spectrum, older processes, such as 0.18-micron, will fall to account for only 5 percent of all designs in 2009, down from about 12 percent currently.

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