Application-Specific Integrated Circuit in United States Trends and Forecast
The future of the application-specific integrated circuit market in the United States looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets. The global application-specific integrated circuit market is expected to reach an estimated $21.8 billion by 2031 with a CAGR of 5.7% from 2025 to 2031. The application-specific integrated circuit market in United States is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
• Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to its lower complexity and broad range of applications.
• Within the application category, consumer electronics is expected to witness the highest growth due to the increasing use of application-specific integrated circuits in various gadgets, such as smartphones, tablets, and laptops.
Emerging Trends in the Application-Specific Integrated Circuit Market in United States
The United States market for application-specific integrated circuits (ASIC) is rapidly changing due to continuous advancements in technology and consumer demand. Major contributors to this shift include the sectors of 5G, artificial intelligence (AI), automotive, and energy-efficient technologies. Specialized integrated circuits are increasingly being adopted for specific tasks to enhance system efficiency, performance, and scalability. These developments are transforming the semiconductor industry, creating new opportunities and challenges for producers, creators, and companies striving to capture market share in a fast-evolving market.
• Development of 5G Networks: The launch of 5G networks in the United States has led to an increased demand for high-performance specialized integrated circuits (ASICs), which are critical for improving data transmission speed, reducing latency, and enhancing reliability. Communication is now faster and more efficient, as these specialized chips are integrated into telecommunications and data center equipment. As 5G technology continues to advance, ASICs will play a central role in U.S. infrastructure, ensuring the country remains competitive in the global wireless communication landscape.
• Rise of AI and ML: The expansion of artificial intelligence (AI) and machine learning (ML) across various sectors has significantly increased the demand for specialized ASICs. As AI continues to evolve, the United States is at the forefront of advancing AI-driven businesses, which in turn drives demand for ASICs optimized for AI and ML tasks. These chips process data with high efficiency while consuming minimal power, making them especially useful for AI applications in industries such as healthcare, finance, and autonomous vehicles.
• Expansion of Electric Vehicles (EVs) and Cars Systems Controlled by Computers: As the electric vehicle (EV) and autonomous car industries continue to grow, the demand for application-specific integrated circuits (ASICs) also rises. The rapid development of EVs in the United States is driving higher requirements for ASICs that offer increased safety, functionality, and power efficiency in automobiles. These specialized circuits are crucial for battery systems, power control units, and in-car communication nodes, which differentiate them from traditional systems. As EV technologies progress, new opportunities for ASICs will emerge within the automotive industry.
• Shift Towards Energy Efficiency and Sustainability: The need for sustainable ASICs that deliver high power efficiency and performance is growing. These chips are being integrated into smart grids, low-power devices, and renewable energy applications. Additionally, green technologies in the United States are seeing increased demand due to government initiatives focused on clean energy and carbon reduction. This focus on sustainability is driving demand for ASICs. At the same time, chip manufacturers are responding to these sustainability requirements, contributing to the growth of the ASIC market in energy efficiency. Fast ASICs support national environmental goals.
• Buildout of Edge Computing Capabilities: The demand for low-latency, high-performance computing at the edge has reduced reliance on centralized cloud systems. Edge computing meets this need by enabling IoT devices and remote systems to make faster decisions with less bandwidth. Industries such as healthcare, retail, and smart cities are experiencing a surge in edge computing, which in turn drives the need for real-time analytics and decision-making. The increasing demand for edge AI is expected to boost growth in the U.S. market.
The United States is experiencing innovation in telecommunications, AI, automotive, and sustainability, which is reshaping the U.S. application-specific integrated circuit (ASIC) market. There is an increasing demand for high-performance, energy-efficient chips. These trends will enable the U.S. to maintain its position as a global leader in semiconductors, allowing advanced industry manufacturers and developers to capitalize on and lead the market.
Recent Developments in the Application-Specific Integrated Circuit Market in United States
Innovation and investment in ASIC technology have significantly increased in the U.S. The combination of technological advancements and high market demand is driving investments in the sector. There has been a recent surge in innovations for 5G, AI, electric vehicles, and energy-efficient specialized chips. ASIC technology is shaping the future of the semiconductor industry. As a result, the U.S. ASIC market has undergone substantial changes.
• 5G Investment and Telecom Infrastructure Demand: The U.S. has been investing heavily in 5G technology, resulting in a surge in telecom infrastructure demand. As telecom companies transition to 5G systems, they require powerful ASICs that enable rapid data transfer, low latency, and other essential functions. These specialized chips are integral to base stations, signal processing units, and data centers in 5G networks, improving network performance. As technology continues to advance, the U.S. will continue investing in 5G, integrating more sophisticated systems. ASICs will be crucial in supporting the next generation of wireless communication.
• AI and ML Adoption in Various Sectors: The incorporation of artificial intelligence (AI) and machine learning (ML) technologies in industries such as healthcare, finance, and manufacturing has significantly increased demand for AI-specific ASICs. Traditional processors are designed for general purposes, often consuming more energy to execute AI workloads. Specialized AI-enhanced ASICs are being developed in the U.S. to address these challenges. These custom ASICs are driving innovation in autonomous vehicles, medical imaging, and data analysis. The demand for faster, more scalable, and energy-efficient systems continues to rise.
• Electric Vehicles and Autonomous Systems: The growth of electric vehicles (EVs) and autonomous systems in the U.S. is fueling the need for specialized ASICs. These chips are vital for power control, battery management, and sensor data processing in electric and autonomous vehicles with advanced driver-assistance systems (ADAS) and other intelligent features. As the adoption of green technologies and smart transportation accelerates, ASIC manufacturers are providing tailored solutions for the evolving demands of the automotive sector, contributing to the development of the EV ecosystem.
• Energy Efficiency and Sustainable Innovations: There is a growing demand for energy-efficient ASICs in the U.S. These chips are optimized for applications in solar plants, wind turbines, and smart grid systems. The U.S. government’s economic strategy focuses on reducing carbon emissions while promoting clean energy, leading to increased demand for ASICs with minimal energy wastage. This emphasis on energy efficiency is fueling demand for smart city components, environmental monitors, and devices for sustainable energy, further driving growth in the ASIC market.
• Edge Computing and IoT Expansion: Edge computing is gaining traction in the U.S. due to advancements in IoT devices. With lower latency and improved real-time data processing, edge computing is becoming increasingly popular. Specialized ASICs are being developed to meet the specific needs of edge computing within IoT devices and systems. As edge computing is integrated into real-time analytics, the demand for ASICs capable of fast, efficient, and secure data processing is growing, driving the expansion of the U.S. edge computing and IoT markets.
The developments in the U.S. application-specific integrated circuits market highlight the increasing adoption of specialized chips across critical industries such as telecommunications, AI, electric vehicles, sustainable technology, and edge computing. ASICs are pivotal in driving innovation across these fields. The U.S. market for these chips is poised to remain at the forefront of semiconductor technology, continually advancing new methods of innovation and growth as these trends evolve.
Strategic Growth Opportunities for Application-Specific Integrated Circuit Market in United States
The American application-specific integrated circuits (ASIC) market is rapidly evolving due to shifting technologies and expanding customer needs across multiple domains. With the adoption of 5G networks, AI, electric vehicles, and sustainability, there is a growing necessity for achieving efficient, specialized, high-performance, and energy-friendly ASICs. These shifts are being leveraged by semiconductor companies to build innovations and expand their businesses. Below are five growth opportunities in the United States ASIC market that will shape the future.
• Telecommunications Infrastructure and 5G: The implementation of 5G networks in the United States brings distinct growth opportunities for ASICs. It involves developing vertically for IoT technology. As telecommunications companies try to meet faster and more reliable network requirements, specialized base stations, signal processing ASICs, and data center ASICs become essential. These types of ASICs ensure remarkably low latency rates, high data throughput, and minimal energy consumption. As a central component of 5G infrastructure, performance success will be fueled by the tremendous demand for telecommunication systems.
• Artificial Intelligence (AI) and Machine Learning (ML): The adoption of AI and ML technologies has boosted several industries such as healthcare, finance, and autonomous driving. This has created the need for customized ASICs. These chips are specifically designed for AI algorithms as they require tremendous resources to function efficiently. The United States, being a frontrunner in AI development, must manage big data sets, real-time processing, and scaling across many applications with deep learning. Effective ASIC solutions are required for this purpose. The development of AI-focused ASICs will drive growth in sectors relying on these technologies.
• Electric Vehicles (EVs) and Autonomous Vehicles: The scope of the EV market, along with autonomous vehicle technologies, has expanded. This will increase the demand for specialized ASICs tailored for power-management units, battery systems, autonomous driving, real-time decision-making, and navigation. In the U.S., where both the government and the private sector prioritize the use of greener technologies, EV manufacturers are meeting demand with the use of ASICs to achieve optimum safety, efficiency, and intelligence in vehicles. The ongoing development of ASICs in the automotive industry will be crucial for the evolution of electric and autonomous vehicles.
• Sustainability Maintenance and Energy Efficiency: With sustainability being a major concern for the government and industries, the demand for energy-efficient ASICs has increased significantly. These chips are critical in areas such as solar power, smart grids, and energy-saving devices. Along with government efforts to reduce carbon emissions, there is a demand for powerful ASICs that can optimize energy consumption. Manufacturers are working on energy-efficient solutions that will aid the U.S. transition to environmentally friendly technologies while promoting economic development.
• IoT and Edge Computing: If speed and low latency are required, the growth of edge computing will create another opportunity for ASICs. As healthcare, manufacturing, and retail industries continue to implement IoT devices, there is a growing need for specialized ASICs that enable local data processing without relying on centralized clouds. Such ASICs facilitate quick data use, increase information security, and reduce reliance on bandwidth. The growing trend in edge computing will create a corresponding demand for ASICs for IoT applications, fostering further innovation and growth in the sector.
The market for application-specific integrated circuits in the United States is poised to experience dramatic growth with the development of 5G technology, artificial intelligence, electric vehicles, sustainability, and edge computing. Each of these high-profile technologies is creating growing demand for ASICs that excel in productivity. While businesses continue to grow and create more complex solutions, the U.S. sector for ASICs remains the center of technological development, which increases the prominence of the United States as the leading superpower in the global semiconductor sector.
Application-Specific Integrated Circuit Market in United States Driver and Challenges
The market for application-specific integrated circuits (ASICs) in the United States is affected by a variety of technological, economic, and regulatory factors. Important drivers include the expansion of 5G networks, the increase in artificial intelligence (AI), the rise of electric vehicles (EVs), sustainability initiatives, and the growth of edge computing. However, challenges such as supply chain disruptions, high development costs, and the rapid growth of foreign competitors remain headwinds. These factors are essential in understanding how to navigate the constantly changing and unstable market situation and capitalize on emerging opportunities.
The factors responsible for driving the application-specific integrated circuits market in the United States include:
• Modern Developments in Technology: Modern developments in technology, especially AI, IoT, and 5G, significantly influence the U.S. ASIC market. These shifts result in high demand for ASICs that offer enhanced performance, energy efficiency, and scalability. As industries embrace new technologies with high computing requirements, the need for specialized chips increases, pushing market growth. The competitive landscape created by these technological changes allows many companies to seize opportunities to develop innovative ASIC solutions.
• Focus on Sustainability and Energy-Efficient Solutions: Innovative solutions aimed at energy efficiency are another driving factor in the U.S. ASIC market. Due to global sustainability goals and government targets for carbon emission reduction, ASICs are in high demand in the renewables, electric vehicle, and smart city industries. These specialized chips are crucial for enabling electric devices to perform while consuming low power, supporting the country’s clean energy and eco-friendly initiatives. Investments in the development of energy-efficient ASIC solutions are increasing as sustainable technologies are in higher demand.
• Growth of Artificial Intelligence (AI): Industries such as healthcare, finance, and manufacturing are undergoing significant transformations, greatly increasing the demand for specialized ASICs. AI technologies require enormous amounts of data processing, and ASICs are renowned for their ability to perform this efficiently and with low power consumption. The expansion of AI-enabled solutions in areas such as self-driving cars, robotics, and medical imaging diagnostics is driving the need for dedicated AI ASICs. This offers a lucrative opportunity for semiconductor companies, especially those creating custom AI systems.
• Expansion of Electric Vehicles (EVs): A surge in demand for electric vehicles (EVs) is one of the key drivers for the U.S. ASIC industry. With the shift in the auto industry toward electric and self-driving cars, there is a growing market for specialized power, battery, and sensor control ASICs. Among others, EV manufacturers have turned to ASICs to meet the performance and safety requirements of modern automobiles. With continued support from governments and automakers to achieve sustainable mobility, this phenomenon is expected to grow faster, positioning EV-related ASIC applications as a focal point for growth.
• Edge Computing and IoT: With edge computing and IoT at the forefront of innovation, industries are transforming as data is processed at the device level. This has greatly reduced dependence on centralized cloud systems. This transition has increased the need for specialized ASICs capable of meeting edge computing requirements such as low latency, high security, and efficient bandwidth management. As healthcare, manufacturing, and smart city initiatives grow, the proliferation of IoT devices will further drive the demand for IoT-specific ASICs, benefiting the U.S. market.
Challenges in the application-specific integrated circuits market in the United States are:
• Supply Chain Disruptions: The U.S. market for ASICs is experiencing severe supply chain disruptions, particularly with the ongoing global chip shortage affecting semiconductor manufacturing. High demand for specialized chips, combined with supply chain limitations, has resulted in delays, increased production costs, and higher spending. To address this issue, many companies are diversifying their supply chains and investing in local production facilities, but these obstacles continue to persist.
• High Development Costs: Another challenge for U.S. manufacturers is the cost associated with custom ASIC development. Designing and producing these specialized chips offers significant benefits, but it is expensive in terms of research and development (R&D) and manufacturing. For smaller companies or startups, these costs pose a barrier to entering the market. As a result, some companies are outmatched by larger corporations with the resources to develop state-of-the-art ASIC chips.
• Intense Global Competition: The civilian-sector ASIC market is highly competitive, with firms from various countries vying for market share. U.S. manufacturers face challenges in competing with established companies from nations like China, South Korea, and Taiwan, which invest heavily in semiconductor development. Increased competition brings challenges related to costs, innovation, and scalability. To remain competitive, U.S. firms must adapt and evolve their product positioning.
The growth of artificial intelligence, electric vehicles, and edge computing industries is driving demand for advanced integrated circuits in the United States. However, global competition, supply chain issues, and high development costs present significant challenges for the market. Companies seeking to capitalize on the expanding demand for specialized ASICs while competing on the global stage will need to carefully navigate these forces.
List of Application-Specific Integrated Circuit Market in United States Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, application-specific integrated circuit companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the application-specific integrated circuit companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Application-Specific Integrated Circuit Market in United States by Segment
The study includes a forecast for the application-specific integrated circuit market in United States by product type and application.
Application-Specific Integrated Circuit Market in United States by Product Type [Analysis by Value from 2019 to 2031]:
• Full Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
Application-Specific Integrated Circuit Market in United States by Application [Analysis by Value from 2019 to 2031]:
• Telecommunication
• Industrial
• Automotive
• Consumer Electronics
• Others
Features of the Application-Specific Integrated Circuit Market in United States
Market Size Estimates: Application-specific integrated circuit in United States market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Application-specific integrated circuit in United States market size by product type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different product type and application for the application-specific integrated circuit in United States.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the application-specific integrated circuit in United States.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the application-specific integrated circuit market in United States?
Answer: The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
Q2. What are the major segments for application-specific integrated circuit market in United States?
Answer: The future of the application-specific integrated circuit market in United States looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets.
Q3. Which application-specific integrated circuit market segment in United States will be the largest in future?
Answer: Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to it’s lower complexity and broad range of applications.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the application-specific integrated circuit market in United States by product type (full custom ASIC, semi-custom ASIC, and programmable ASIC), and application (telecommunication, industrial, automotive, consumer electronics, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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