ASIC market takes a turn for the better in 2002
8 May 2002
News
After a gut-wrenching sales slide in 2001, the ASIC (Application Specific Integrated Circuit) market in 2002 is beginning to turn the corner, setting the stage for long-term growth, according to a leader in parts flow management, iSuppli Corporation.
Its report, titled 'Whither gate arrays, or will gate arrays wither?', reveals that worldwide ASIC sales fell by 28% in 2001. According to the group, the sales slide was prompted by the downturn in the electronics industry in general, and particularly, in communications equipment, which depressed demand for semi-custom chips, including gate-array and cell-based ASICs. It expects a return to growth for 2002, although that growth will be marginal at best, with sales rising a scant 5%.
"Compared to the market disaster that was 2001, almost any scenario in 2002 represents an improvement," said Jordan Selburn, principal analyst with iSuppli. "iSuppli expects the resumption of very modest growth in the coming months, driven by a second-half upturn in communications and continued strength in consumer applications."
Despite the return to growth, iSuppli says that ASIC suppliers face new challenges that could diminish their sales growth rates over the next few years. The greatest challenge may arise from the emerging fabless ASIC companies, which are expected to mount increasing competition to the established players, and increasing use of standard product solutions also may become an obstacle to growth for the entrenched ASIC vendors.
While ASICs overall will enjoy sales growth, revenues for gate arrays are projected to continue their decline. Gate array sales will decline from about 10% of total ASIC revenues, or $1,34 bn, in 2001, to less than four percent of ASIC revenues, or less than $1,2 bn, by 2006. This will occur despite efforts by some gate array vendors to provide easy migration paths from more costly FPGA devices.
www.isuppli.com
Further reading:
RE+ South Africa 2026: From strategy to execution
News
Taking place at Gallagher Convention Centre in Johannesburg from 02 to 04 June 2026, this new addition to South Africa’s energy landscape introduces a focused commercial and industrial energy event within a proven exhibition platform.
Read more...
Africa Energy Indaba announces 2027 dates
News
Following the continued success and growing global impact of the Africa Energy Indaba, organisers have announced the dates for the 19th edition of the Africa Energy Indaba 2027.
Read more...
RS South Africa named master distributor for the Arduino UNO Q
RS South Africa
News
RS South Africa announced that it has been named Master Distributor for the Arduino UNO Q SBC platform across South Africa and the broader African region.
Read more...
Engineering in a world that cannot assume connectivity
Technews Publishing
Editor's Choice News
Across industrial automation, networking, and defence systems, engineers are rediscovering the importance of resilience and autonomy in an increasingly connected world.
Read more...
IOT secures major industry partnership
IOT Electronics
News
IOT Electronics has announced a new strategic partnership with Powell Electronics, becoming an Official Authorised Reseller in South Africa.
Read more...
Successful Proteus training conference
Dizzy Enterprises
News
Dizzy Enterprises recently hosted two hands-on Proteus Training Conferences, bringing together electronics professionals, designers, and enthusiasts to explore the latest capabilities of the Proteus Design Suite from Labcenter Electronics.
Read more...
Hitachi reinvents asset management solution
News
Hitachi Energy, in collaboration with Microsoft, is accelerating the digital transformation of essential infrastructure - from electricity networks and transportation corridors to heavy industrial operations - by reinventing how critical assets are managed and maintained.
Read more...
Mycronic releases mixed Q4 results
News
Mycronic reported mixed Q4 results for the year ended January to December 2025, while delivering record full year order intake and net sales.
Read more...
AGOA: Businesses should diversify or face significant exposure
News
Cross-border payments platform Verto has called on South African and African businesses to accelerate their transition toward a “post-AGOA” trade strategy following President Donald Trump’s signing of a one-year extension to the African Growth and Opportunity Act (AGOA).
Read more...
European components distribution growing
News
European electronic components distribution returned to growth in the fourth quarter of 2025, according to newly released figures from DMASS Europe.
Read more...
printer friendly version