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WHY DESIGN ASIC AT ALL???


Complex high-speed digital circuits demand the use of VLSI ASICs for compactness and reliable low-power, noise-free operation. The use of general-purpose "off-the shelf" ICs, especially for high-speed, low-power products is rapidly diminishing, due to the design overkill in terms of unused functionality and silicon area, larger component count and more PCB interconnect lengths causing EMI. In addition, today's intensely competitive market makes it imperative to protect the design secrecy, a need well addressed in ASIC implementations. Due to these factors, even small electronics product manufacturers are switching over to design of proprietary ASICs for their products. It is estimated that more than 70% of the proprietary IC types manufactured today fall in the Application Specific category. 

         The advantages of designing and using ASICs are

ADVANTAGES OF ASIC DESIGNLOWER COMPONENT COUNT
ADVANTAGES OF ASIC DESIGNLOWER MATERIAL, PRODUCTION AND TESTING COSTS
ADVANTAGES OF ASIC DESIGNHIGHER SPEED
ADVANTAGES OF ASIC DESIGNCOMPACTNESS AND RELIABILITY
ADVANTAGES OF ASIC DESIGNLOWER POWER DISSIPATION
ADVANTAGES OF ASIC DESIGNSPROTECTION OF DESIGN CONFIDENTIALITY

However, there is a disadvantage, the masking and setup costs (usually referred to as NRE - Non-Recurring Engineering Charges) to be paid to the silicon foundry undertaking to fabricate an ASIC design. This amount, varying from US$15,000 to 50,000 is payable upfront and will have to be reincurred partially or fully in case the ASIC is not a first-time success. This puts a terrific strain on the ASIC design team which relies on its own design skills, the integrity of the tools and the comprehensiveness of the test vectors it designs for the ASIC. From the ASIC user's point of view, the NRE charges have to be amortised over the volume sales of his product.