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Why choose for an ASIC?

5 Arguments why innovative companies choose for an ASIC

Why choose for an ASIC?

For organizations creating innovative products today, the question isn’t whether custom ASICs offer advantages. It’s whether you can afford to ignore them, while competitors gain significant technical and economic benefits. In this article, we'll share five key reasons why innovative companies prefer custom ASICs over off-the-shelf solutions, and how this choice often helps them dominate their markets.

The smart hearing aid that seamlessly filters background noise. The car radar system that detects obstacles with millisecond precision. The industrial sensor that operates flawlessly in extreme conditions for years without maintenance. What do these breakthrough products have in common? They all rely on custom silicon designed specifically for their unique demands. Standard chips offer convenience and quick access. You can order them today and integrate them tomorrow. However, convenience often comes with trade-offs. Off-the-shelf integrated circuits provide generic performance for common applications. They tend to consume more power than necessary, take up more space than ideal, include functions you won't use, and miss the features you actually need. Custom ASICs flip this equation entirely. When you develop an analog, mixed-signal, or RF ASIC tailored to your application, every transistor has a purpose. Every milliwatt counts. Every square millimeter of silicon real estate is optimized for your specific needs.

1. Unmatched Performance

One of the most powerful reasons to choose an ASIC is performance. Because an ASIC is custom-designed for a specific task, it can be optimized for required functions, maximum efficiency, and speed. In practice, that means an ASIC implementation often outperforms general-purpose ICs.

Designers can fine-tune every circuit and signal path on an ASIC, achieving higher frequencies, efficiencies, with lower latency and noise than what’s possible on general off-the-shelf ICs. The result is dedicated hardware tailored to your exact performance targets, such as: low noise, fast signal response, high linearity, or robust EMC performance.

Hand-in-hand with performance is energy efficiency. By including only the necessary circuitry and optimizing it for the application, a custom chip avoids the overhead of unused circuitry. There is no power wasted on general-purpose features that aren’t needed. For battery-powered devices, this translates directly to extended operational life.

In short, ASICs are the optimal match in performance efficiency, power usage and functionality.

2. Reduced Size and System Complexity

Another major advantage of ASICs is the integration of multiple functions into a single chip, which dramatically reduces the overall system size and complexity. In a custom ASIC, many discrete components, such as amplifiers, comparators, LDOs, ADCs, controllers, and power management blocks are integrated into one chip.

The benefits of this miniaturization are significant:

  • Smaller PCB footprint: One ASIC replaces an array of separate chips and components, freeing up board space for a lighter, more compact product. This is crucial for wearables, IoT sensors, medical implants, and any application where space is at a premium.
  • Simplified assembly: With fewer components to solder and connect, manufacturing becomes simpler and more reliable.
  • Lower bill of materials (BOM): Combining functions into one chip reduces the number of different parts you need to source and stock.
  • Enhanced reliability: Eliminating dozens of discrete components removes many potential points of failure.

By shrinking your design and streamlining the electronics, an ASIC not only saves space but also contributes to a more robust and elegant product.

3. Long-Term Cost Efficiency and Scalability

Cost is often a deciding factor in technology choices. It’s true that developing a custom ASIC involves upfront costs, but the long-term economics strongly favor ASICs for products from low to high production volumes.

  • Development Investments: Modern ASIC development typically requires €1M–€5M in non-recurring engineering (NRE) costs.
  • System-Level Economics: Total cost of ownership includes benefits like reduced component count, inventory handling, and quality control.
  • Break-Even Analysis: Most ASIC projects achieve ROI within 2–3 years for products with annual volumes over 25,000 units.

In essence, an ASIC solution positions you to meet large-scale market demand cost-effectively.

4. IP Protection and Product Differentiation

An ASIC allows you to implement proprietary functions that no one else can easily replicate. Your innovation is literally hardwired into the device, enabling features that competitors using generic chips cannot match.

  • Reverse Engineering Complexity: Extracting IP from a custom ASIC requires high effort and cost, creating barriers for competitors.
  • Time-to-Market Advantages: Proprietary ASICs typically provide a 12–24 month competitive head start.
  • Market Differentiation: Custom features support premium pricing and stronger brand positioning.

In summary, incorporating a custom ASIC helps secure your competitive position by protecting your product’s unique capabilities.

5. Control Over Supply Chain and Managing Risks

Recent years have underscored how crucial supply chain stability is. When you rely on standard components, you’re subject to external decisions. ASICs provide more control and predictability.

  • Obsolescence Risk: Custom ASICs give you time to react and manage end-of-life planning effectively.
  • Allocation Priority: Custom designs often receive allocation preference during shortages.
  • Cost Predictability: Long-term supply agreements offer protection from market pricing swings.

Ultimately, an ASIC can be the key to keeping your production on track and meeting customer expectations.

Selecting the Right ASIC Development Partner

ASIC development success depends on experienced partners. Key factors to evaluate:

  • Technical Expertise: Experience in relevant technology domains like RF, analog, and mixed-signal.
  • Development Methodology: Structured approaches that include feasibility and risk assessment.
  • Supply Chain Management: Support beyond design, including testing and foundry partnerships.
  • Application Understanding: Insight into your market to optimize the design accordingly.

Bruco Integrated Circuits takes a comprehensive approach, combining deep technical expertise with end-to-end project management. Based in the Netherlands with global foundry partnerships, Bruco IC has delivered custom ASICs across various industries, including consumer electronics and automotive applications.

Their methodology includes feasibility studies, detailed design, validation, and supply chain support throughout the lifecycle. This reduces project risk and improves time-to-market.

Developing ASICs for a Competitive Edge

The strategic question isn't whether ASICs provide advantages, but whether you can maintain your position without them. Custom silicon delivers better performance, efficiency, and product integration. It also ensures long-term cost control and supply chain reliability.

Do you want to know more about how Bruco IC can help elevate your next product to new heights?

Bruco IC is ready to guide you through that process — from the first concept discussions to the moment your ASIC rolls off the assembly line.

Looking for support for RF, Analog, and Mixed-Signal Applications?