FPGA Market

FPGA: Unleashing the Power of Programmable Logic

Field-Programmable Gate Arrays (FPGAs) have revolutionized the world of digital electronics by providing a versatile platform for rapid prototyping, hardware acceleration, and system integration. FPGA technology allows for the customization of digital circuits after manufacturing, offering flexibility and performance advantages over traditional application-specific integrated circuits (ASICs). This essay explores the concept of FPGAs, their top impacting factors, and government policies that influence their development and adoption.

Understanding FPGA Technology

FPGAs are semiconductor devices consisting of a matrix of programmable logic blocks interconnected by programmable interconnects. These programmable components enable the user to configure the FPGA to implement a wide range of digital circuits, including processors, memory controllers, and application-specific functions. The programmability of FPGAs offers benefits such as shorter development cycles, cost-effectiveness, and scalability.

Top Impacting Factors in FPGA Development

Performance Enhancement: FPGAs provide hardware acceleration capabilities, enabling significant performance improvements for computationally intensive tasks. The ability to parallelize and optimize algorithms directly in hardware can lead to substantial speedups in applications such as data analytics, machine learning, and cryptography.

Design Flexibility: FPGAs offer unparalleled design flexibility, allowing designers to rapidly iterate and experiment with different hardware configurations. This agility is particularly beneficial in emerging domains like Internet of Things (IoT) and edge computing, where requirements often evolve rapidly.

Power Efficiency: FPGA architectures can be highly power-efficient compared to general-purpose processors, as they can be fine-tuned for specific tasks and avoid the overhead associated with executing unnecessary instructions. This characteristic makes FPGAs suitable for power-constrained environments, such as mobile devices and data centers.

Reconfigurability: The ability to reconfigure FPGAs on-the-fly enables dynamic hardware adaptation to changing workloads or system requirements. This feature is particularly valuable in scenarios where system updates or optimizations can be deployed without interrupting ongoing operations.

Government Policies and Support

Research and Development Funding: Governments around the world are increasingly recognizing the strategic importance of FPGA technology. They provide financial support for research projects aimed at advancing FPGA capabilities, fostering innovation, and encouraging collaborations between academia and industry.

Standardization Efforts: Governments often facilitate the establishment of industry standards for FPGAs, promoting interoperability and encouraging widespread adoption. Standardization enhances the ecosystem's stability and stimulates competition and compatibility among different vendors.

Education and Skill Development: Governments invest in educational programs to develop a skilled workforce capable of harnessing FPGA technology effectively. Initiatives may include curriculum development, training workshops, and partnerships with educational institutions and industry stakeholders.

Intellectual Property (IP) Protection: Government policies promote the protection of FPGA designs and associated intellectual property. Legal frameworks, patents, and copyright laws safeguard the investments made by companies and individuals, encouraging innovation and fostering a competitive market.

Dynamics of FPGA Market

Drivers in FPGA Market

The Growing Adoption of AI and IoT Technologies Worldwide

Artificial Intelligence (AI) and the Internet of Things (IoT) are increasingly utilized in various industries for complex tasks such as motor control and vision processing.

These applications require powerful computing capabilities and real-time deterministic system behavior. Field-Programmable Gate Arrays (FPGAs) are witnessing a rise in global adoption due to their hard-deterministic features. The integration of AI and IoT in different sectors has paved the way for significant advancements in FPGA technology. FPGAs play a crucial role in innovations related to AI and IoT, including intelligent buildings, connected cars, smart power grids, and smart city infrastructures. The market growth of FPGAs is driven by their increased use as an Infrastructure-as-a-Service (IaaS) resource by cloud customers. Several cloud service providers are deploying FPGAs to accelerate tasks like network encryption, deep learning, memory caching, webpage ranking, high-frequency trading, and video conversion. One example is Amazon.com, Inc., which utilizes FPGA coprocessors in the EC2 F1 virtual machine to enhance hardware acceleration for its customers.

As per The Mobile Economy report, the number of IoT connections worldwide reached 19.1 billion units last year and is projected to exceed 28.5 billion units during the forecast period. FPGAs are extensively integrated into IoT and AI-based devices. The widespread adoption of these systems globally will contribute to the growth of the FPGA market in the foreseeable future.

Restraints in FPGA Market

Security Risks Arising from Hidden Bugs in FPGAs

The market growth of Field-Programmable Gate Arrays (FPGAs) is impeded by security vulnerabilities stemming from hidden bugs within the hardware. Unlike traditional hardware chipsets and ICs, FPGAs possess re-programmability, enabling developers to achieve desired functionality post-manufacturing. However, this very feature makes FPGAs susceptible to security attacks. Some FPGAs harbor hidden bugs in their hardware, which could potentially allow hackers to steal sensitive data and gain complete control over the chipset.

Researchers from the Max Planck Institute for Security and Privacy in Germany, along with the Horst Gortz Institute for IT Security at Ruhr-Universität Bochum (RUB), have uncovered a security bug named 'Starbleed' embedded within the hardware. The only way to eliminate this bug is by replacing the FPGA chipset.

Opportunities in FPGA Market

Increasing Demand for FPGAs in High Bandwidth Devices for High-End Applications

The growing need for high bandwidth devices, particularly in high-end applications such as multimedia and broadcasting in cellular networks, has spurred a rise in demand. As a result, companies are actively developing new technologies capable of meeting the required bandwidth and establishing reliable connections in wireless environments.

To bridge the bandwidth gap between memory storage and computing storage, high bandwidth memory (HBM) has emerged as a promising solution. By integrating HBM with FPGAs through a silicon interposer, the necessary interconnection for HBM interfaces is achieved. This integration eliminates the need for external memory interfaces, making FPGAs well-suited for high bandwidth devices.

Furthermore, the increasing utilization of machine learning and artificial intelligence has fueled the demand for high-bandwidth devices that can facilitate fast and highly dependable data transfer. This trend is anticipated to create favorable growth prospects for the FPGA market.

Challenges in FPGA Market

Insufficient Improvement and Standardization of Verification Techniques

The reliance of FPGAs on register-transfer level (RTL) designs and their verification pose significant challenges to the growth of the FPGA market.

Effective verification techniques are essential for reducing FPGA development cycles and incorporating technological advancements. Currently, FPGA verification primarily relies on component debugging. However, the existing verification techniques, such as constrained-random and coverage-driven simulation, formal property checking, and assertion-based verification, have been in use for over 15 years.

Designing and programming FPGAs can be intricate, requiring specialized knowledge and expertise. Developing efficient and error-free FPGA designs often necessitates proficiency in hardware description languages (HDLs) like VHDL or Verilog, along with experience using FPGA-specific design tools. Moreover, FPGA designs typically entail longer development cycles compared to software development. When dealing with large designs or high-speed interfaces, the process of designing and verifying complex FPGA designs can be time-consuming.

Verification is critical to ensuring the correctness and functionality of FPGA designs, which adds to the overall design time. Additionally, optimizing the utilization of available hardware resources, such as logic elements, memory blocks, and I/O pins, while meeting design requirements, can be a daunting task. FPGAs can consume significant power, especially when operating at high frequencies or utilizing all resources. Consequently, power optimization techniques like power gating, clock gating, and the use of low-power FPGA families are often necessary to minimize power consumption.

Due to the reconfigurable nature of FPGAs, they typically exhibit non-deterministic timing characteristics. The placement and routing of the design on the FPGA can impact timing behavior, making it challenging to ensure precise timing constraints are met. Furthermore, FPGAs can be more expensive compared to general-purpose processors or Application-Specific Integrated Circuits (ASICs). Costs associated with FPGA development boards, design tool licenses, and production-scale deployment contribute to higher overall expenses.

Ecosystem of FPGA Market

The low-end FPGA segment is poised to dominate the market in the foreseeable future. This particular segment is expected to take the lead during the forecast period due to its notable advantages, including high energy efficiency and reduced complexity. These qualities have significantly contributed to the widespread adoption of low-end FPGAs across various industries, such as automotive, consumer electronics, and industrial applications.

Many players within the low-end FPGA ecosystem are strategically focusing on organic growth initiatives to gain a competitive edge in the market. Renesas Electronics Corporation, for instance, a company based in Japan, has recently introduced a new product line called the Forge FPGA Family, specifically targeting low-end FPGAs. These newly developed FPGAs are designed to cater to applications that require less than 5,000 logic gates. The applications for these low-end FPGAs are anticipated to be in high-volume consumer electronics and IoT devices.

During the forecast period, the 20–90 nm FPGA segment is projected to hold a significant market share. This particular segment is favored by customers due to several appealing features offered by the 20–90 nm FPGAs, including high performance, programming flexibility, and low power consumption. These FPGAs, ranging in node sizes from 20–90 nm, have been available in the market for some time, and their popularity stems from their exceptional value in terms of high bandwidth and reduced total system costs. As a result, they are suitable for a wide range of applications, particularly general-purpose and portable applications.

The telecommunication sector is expected to drive the demand for 20–90 nm FPGAs, particularly in wired and wireless communication applications like remote radio heads, access routers, and mobile backhaul. This rising demand from the telecommunication industry will create significant growth opportunities for the 20–90 nm FPGA segment.

SRAM-Based Technology Dominating the FPGA Market

During the projected period, the SRAM segment is expected to hold the largest market share in the FPGA market.

The increased adoption of SRAM-based FPGAs in various sectors such as telecommunication systems, consumer electronics, military and aerospace, and datacenter network acceleration contributes to this high market share. SRAM-based FPGAs utilize the complementary metal oxide semiconductor (CMOS) fabrication process, which enables devices to achieve greater logic density and programming flexibility compared to other technologies. These advanced features provided by FPGA technology will create significant market opportunities for manufacturers focusing on SRAM-based FPGAs throughout the forecast period.

Flash-based FPGAs are predicted to be the most widely used technology during the forecast period. This segment is experiencing substantial demand as major players in the market are enhancing their portfolio of flash-based field programmable gate arrays to meet the expanding application base. For example, Lattice Semiconductor Corporation introduced the CrossLinkPlus flash-based FPGA family designed for embedded vision systems that utilize the MIPI D-PHY interface. These FPGAs offer improved display and sensor bridging capabilities, making them essential for automotive, industrial, consumer, and computing applications.

On the other hand, the growth of Electrically Erasable Programmable Read-Only Memory (EEPROM)-based FPGAs is expected to be sluggish during the forecast period due to the rapid adoption of newer technologies such as SRAM and Flash. The slower growth in the coming years can be attributed to the continuous advancements in these new technologies, which offer non-volatile properties, increased flexibility in meeting application requirements, and lower power consumption.

Telecommunications Segment Holding the Largest Market Share Throughout the Forecast Period

The telecommunications segment demonstrated a significant market share in terms of value in last year and is expected to maintain its dominance throughout the forecast period. This substantial market share is attributed to the growing adoption of FPGAs across various communication applications, including optical transport networks (OTN), network processing, wireless baseband, and backhaul solutions.

FPGAs offer re-programmability, enabling telecom operators to quickly update systems, address any issues, or introduce new features within their telecommunication infrastructure. Furthermore, the widespread implementation of 5G communication infrastructure in developed and emerging economies worldwide will further accelerate the adoption of FPGAs in the telecommunications sector.

The automotive industry plays a crucial role in driving market demand as well. Designers of Advanced Driver Assistance Systems (ADAS) prefer FPGAs for vision processing applications that require high-level processing and fine-grained parallelism. Key manufacturers continually upgrade their product portfolios to meet the evolving requirements of the automotive industry. For example, Xilinx, Inc. recently launched automotive-qualified circuits, specifically the 16-nm FinFET+ technology, targeting ADAS and self-driving cars.

The military and aerospace segment is expected to experience substantial growth during the forecast period. The emergence of embedded field programmable gate arrays (e-FPGAs) has particularly benefitted the aviation and defense industry by offering improved integration, reliability, and low-power options compared to traditional FPGAs. The Boeing company has embraced e-FPGAs for various applications, including encryption and decryption, which require high-bandwidth input-output capabilities. FPGA manufacturers are actively innovating and developing state-of-the-art products to cater to the growing demands of this sector. For instance, Microchip Technology Inc. has been working on radiation-tolerant RT PolarFire FPGAs for high-speed data paths in spacecraft applications, with the product expected to be available for space-flight deployment last year.

The ever-increasing number of smartphone users also presents new growth opportunities for key market players. FPGAs are utilized in several industrial application areas such as the Industrial Internet of Things (IIoT), smart energy, and automation to enable system designers to meet evolving standards, enhance scalability and performance, and reduce costs. The anticipated growth of the fourth generation of automation, with even more advanced computing capacities, is expected to drive further industry expansion.

Regional Insights

Currently, the Asia Pacific region holds the largest market share, primarily driven by the increasing deployment of 5G telecommunication networks in economies such as China, Japan, and South Korea. Among these countries, China stands out with the largest revenue share due to the government's sustained investments and initiatives to foster industry growth. Notably, China has established a semiconductor fund worth USD 30 billion, backed by the government, aimed at nurturing the national chip industry. This fund focuses on the development of FPGAs, core processing units, and memory chips, creating new opportunities within the market.

In the North America region, the market captured a revenue share of 27.6% last year. Mexico, in particular, is expected to experience significant growth, driven by its thriving automobile industry. The Semiconductor Industry Association (SIA) announced the signing of the U.S.-Mexico-Canada Agreement (USMCA) in November 2018. This agreement promotes free trade and ensures that tech products, including semiconductors manufactured in America, can be exported to clients worldwide. Such agreements are anticipated to drive market growth in the region in the coming years.

The South America region is expected to gain attention due to growth in the automobile, industrial, and aerospace sectors, particularly in Brazil. Additionally, technology companies are expanding and relocating their data center capacities to the Middle East and Africa, which presents promising growth prospects for the regional demand for field programmable gate arrays (FPGAs). For instance, Microsoft Corporation initiated data centers in the UAE, and Amazon.com, Inc. launched three availability zones in Bahrain. The expansion of data centers in the region is poised to significantly contribute to market growth.

Dominating Companies in FPGA Market

• XILINX, INC.
• INTEL CORPORATION
• MICROCHIP TECHNOLOGY INC.
• LATTICE SEMICONDUCTOR CORPORATION
• ACHRONIX SEMICONDUCTOR CORPORATION
• QUICKLOGIC CORPORATION
• EFINIX INC.
• FLEX LOGIX TECHNOLOGIES, INC.
• GOWIN SEMICONDUCTOR CORPORATION
• S2C
• RENESAS ELECTRONICS CORPORATION
• AGM MICROELECTRONICS
• SHANGHAI ANLU INFORMATION TECHNOLOGY CO., LTD.
• SHENZHEN ZIGUANG TONGCHUANG ELECTRONICS CO., LTD.
• XI’AN ZHIDUOJI MICROELECTRONICS CO., LTD.
• LEAFLABS, LLC
• ALDEC, INC.
• BYTESNAP DESIGN
• ENCLUSTRA
• ENSILICA
• GIDEL
• NUVATION ENGINEERING
• EMUPRO CONSULTING PRIVATE LIMITED
• IWAVE SYSTEMS TECHNOLOGIES PVT. LTD.
• MISTRAL SOLUTIONS PVT. LTD.
• Qualcomm Technologies, Inc.
• NVIDIA Corporation
• Broadcom
• AMD, Inc.

Recent Developments in FPGA Market

• In October 2020, Advanced Micro Devices (AMD) announced its acquisition of Xilinx, a prominent FPGA manufacturer. The deal, valued at approximately $35 billion, aimed to combine AMD's high-performance computing capabilities with Xilinx's FPGA technology. The acquisition positioned the merged entity as a formidable competitor in the data center and computing markets, offering a comprehensive portfolio of CPUs, GPUs, and FPGAs to address diverse customer needs.
• In June 2019, Intel Corporation acquired eASIC, a company specializing in structured ASICs (Application-Specific Integrated Circuits). This strategic move aimed to complement Intel's FPGA offerings with eASIC's technology, providing customers with a broader range of customizable and cost-effective solutions. The acquisition enabled Intel to address a wider spectrum of applications, from data centers to edge devices, with more efficient and tailored solutions.
• In May 2018, Microchip Technology completed its acquisition of Microsemi Corporation, a leading provider of semiconductor solutions, including FPGAs. The deal, valued at approximately $10.3 billion, expanded Microchip's product portfolio and market reach in areas such as aerospace, defense, communications, and industrial sectors. The merger aimed to leverage the strengths of both companies, combining Microchip's expertise in microcontrollers with Microsemi's FPGA and system solutions, to deliver enhanced value to customers.
• In November 2017, Canyon Bridge Capital Partners, a private equity firm, completed its acquisition of Lattice Semiconductor, a prominent FPGA and programmable logic device manufacturer. The deal, valued at approximately $1.3 billion, aimed to support Lattice Semiconductor's growth plans and product innovation strategies. With the financial backing of Canyon Bridge, Lattice Semiconductor aimed to expand its market presence and accelerate the development of advanced FPGA solutions for emerging applications such as artificial intelligence and autonomous vehicles.
• In November 2019, Dialog Semiconductor announced a strategic partnership with Xilinx to develop highly efficient power management solutions for Xilinx's FPGAs, SoCs (System-on-Chips), and ACAPs (Adaptive Compute Acceleration Platforms). The collaboration aimed to leverage Dialog's expertise in power management and Xilinx's leading FPGA technology to deliver optimized and power-efficient solutions for a wide range of applications, including data centers, automotive, and industrial sectors.
• Achronix Semiconductor, a provider of FPGA and eFPGA solutions, announced its plans to go public through a merger with ACE Convergence Acquisition Corp., a special purpose acquisition company (SPAC). The merger is expected to be completed in the second half of 2021 and aims to accelerate Achronix's growth and expansion in the data center, automotive, and 5G markets.
• Xilinx partnered with NEC Corporation to collaborate on the development of 5G wireless infrastructure solutions. The partnership aimed to combine Xilinx's FPGA technology with NEC's expertise in network infrastructure to deliver high-performance and energy-efficient solutions for 5G networks, enabling faster and more reliable connectivity.
• QuickLogic Corporation, a provider of low-power FPGA and embedded FPGA (eFPGA) solutions, partnered with SensiML Corporation, an AI software company. The collaboration aimed to integrate SensiML's AI software platform with QuickLogic's FPGA and eFPGA technology to enable edge AI solutions for applications such as IoT, wearables, and smart home devices.
• Efinix, a startup specializing in FPGA technology, collaborated with Infineon Technologies to develop FPGA solutions for automotive applications. The collaboration aimed to leverage Efinix's programmable technology and Infineon's automotive expertise to deliver advanced FPGA solutions that meet the stringent requirements of the automotive industry.
• Intel and Baidu, a leading Chinese search engine and AI company, announced a collaboration to optimize Baidu's deep learning frameworks using Intel's FPGAs for AI acceleration. The partnership aimed to enhance the performance and efficiency of AI workloads by leveraging the programmability and flexibility of FPGAs in data center and cloud environments.

FPGAs have emerged as a game-changing technology, offering unparalleled flexibility and performance in the realm of digital electronics. Factors such as performance enhancement, design flexibility, power efficiency, and reconfigurability are driving the widespread adoption of FPGAs across various industries. Government policies, focusing on research funding, standardization, education, and IP protection, play a crucial role in supporting the development and deployment of FPGA technology. As FPGA capabilities continue to evolve, they will undoubtedly shape the future of digital systems and revolutionize industries ranging from telecommunications and automotive to artificial intelligence and beyond.