The custom IC market is set for growth, driven by data center demands for efficiency in large-scale applications like video streaming. Major tech firms (Amazon, Meta, Microsoft, Google) are leading this shift, leveraging custom ICs to enhance performance and reduce costs, especially in video processing.

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Summary

The custom IC market is set for growth, driven by data center demands for efficiency in large scale applications like video streaming. Major tech firms (Amazon, Meta, Microsoft, Google) are leading this shift, leveraging custom ICs to enhance performance and reduce costs, especially in video processing.

Custom IC development

The market for custom ICs will undergo a renaissance fueled by the changing landscape in the data center industry. Custom IC development is well suited to applications that have reached significant scale as it can increase computation efficiency. This is the case with many data center applications, e.g., streaming video content. A custom IC strategy can enable performance maximization with the IC design optimized specifically to the computational needs of an application. This influenced Google’s decision to develop its own custom IC, increasing search engine queries per dollar. Over the last decade, the cost of building custom ICs has significantly decreased as IP, software tools, and design services have become easily accessible.

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