Custom chip design is revolutionizing businesses across industries, with 75% of companies reporting improved performance and efficiency after implementing tailored semiconductor solutions. As the demand for specialized computing power grows, more organizations are exploring the benefits of custom chips to gain a competitive edge in today’s data-driven landscape.
Key Takeaways
- Custom chip design offers businesses enhanced performance, reduced power consumption, and improved security for specific applications.
- Consider custom chips when off-the-shelf solutions can’t meet your unique requirements or when you need a competitive edge in your industry.
- The custom chip design process involves defining specifications, architecture design, logic design, physical design, and manufacturing.
- Custom chips can be beneficial for AI/ML applications, IoT devices, and specialized industrial equipment.
- While custom chips offer advantages, they require significant investment in time and resources, making them suitable for businesses with specific needs and sufficient scale.
Custom chip design is becoming more commonplace as the limits of Moore’s Law for general computing become more entrenched. It’s no longer possible to cram more transistors onto a single piece of silicon without jacking up the price, so brands are now looking for other ways to enhance performance, including the manufacturing of custom chips.
But when should you use these specialist companies and services? That’s the topic we address in this post. We explore situations where custom chip manufacturing is an absolute must!
When You Need To Optimize Performance
Custom chips are great in situations where you need to optimize performance for a specific task. While general processing units will remain commonplace in PCs and smartphones, virtually every other application could benefit from custom chip design.
Custom chips improve processing speeds in the automotive industry, and in machine learning (with AI). It can also speed things up in telecommunications and help robot brains communicate with servos and motors better in industrial applications.
There’s also a case for using companies, like VictoryPCB, for low-latency applications. The idea is to cut the amount of time that it takes for computer circuits to communicate with surrounding machinery, enhancing performance. These applications are becoming even more popular with the rise of 5G and mobile networks that can support these specifications.
When You Want To Optimise Power Efficiency
Custom chips are also an excellent option when you want to optimize power efficiency. These designs can often do much more by themselves than standard or generic chips can.
Power efficiency is critical in data center applications where conventional power draw for AI and cloud services can be enormous. Creating custom chips could be an excellent way to reduce the amount of energy these installations require, reducing green concerns and increasing margins for operators.
At the same time, using energy more efficiently could make more hand-held electronics possible. Specialized chips that process the type of information smartphones use more efficiently could increase battery life without the requirement for enhanced battery chemistries (which may not arrive any time soon).
When You Want Supply Chain Scalability
Another instance where custom chips come in handy is when you want to roll them out across the supply chain. Cheaper chips that just perform set tasks can be implemented at more stages and integrate with the blockchain for more secure goods transfers, reducing the risk of theft and counterfeiting.
These chips could also give companies more control over their supply chains, reducing the risk of shortages. Designing chips in-house and working with a reputable manufacturer would prevent situations, like in 2022, when there weren’t enough chips to go around.
When You Want To Market Differently
Lastly, you should also use custom chip design when you want to market differently. Showing that you approach the chip creation process using alternative techniques to everyone else can help you separate your product from the competition. It could be a source of competitive advantage, particularly in new sectors, like drones and household help robots.
Frequently Asked Questions
What is custom chip design?
Custom chip design is the process of creating specialized semiconductor chips tailored to specific applications or products, offering optimized performance and efficiency compared to off-the-shelf components.
When should a business consider using custom chips?
Businesses should consider custom chips when off-the-shelf solutions can’t meet their unique requirements, when they need a competitive edge, or when they aim to improve performance, reduce power consumption, or enhance security for specific applications.
How expensive is custom chip design?
While custom chip design can be costly, it’s not as expensive as many believe. Prototype chips can be built on mature processes for as little as $18,000, and costs have decreased significantly over time due to advancements in technology and design processes.
What are the main benefits of custom chips?
Custom chips offer enhanced performance, reduced power consumption, improved security, product differentiation, supply chain control, and the ability to integrate multiple functions into a single chip, potentially lowering overall costs in high-volume production.
How long does it take to design a custom chip?
The timeline for custom chip design varies depending on complexity, but it typically takes several months to a year or more. This includes stages like specification, architecture design, logic design, physical design, and manufacturing.
Are custom chips only for large companies?
No, custom chips are not limited to large companies. With the availability of design tools, IP libraries, and support from chip design partners, even smaller companies and startups can benefit from custom chip solutions.
What industries commonly use custom chips?
Custom chips are widely used in industries such as automotive, consumer electronics, telecommunications, Internet of Things (IoT), artificial intelligence, and specialized industrial equipment.
How do custom chips compare to FPGAs?
While FPGAs offer flexibility and quick prototyping, custom chips generally provide better performance, lower power consumption, and reduced unit costs in high-volume production. The choice depends on specific project requirements and production scale.
What expertise is needed for custom chip design?
Custom chip design requires expertise in areas such as digital and analog circuit design, semiconductor physics, computer architecture, and specialized design tools. Many companies partner with design firms or chip manufacturers to access this expertise.
How can businesses protect their intellectual property with custom chips?
Custom chips make it much harder for competitors to reverse-engineer products, providing better protection for intellectual property. The unique design and integration of functions into a single chip create a significant barrier to copying.
