Debunking the myth of the $100M ASIC

Andreas Olofsson, CEO, Adapteva
EETimes (10/3/2011 1:08 PM EDT)

A false belief that leading-edge chips cost up to $100 million to develop has severely decimated levels of venture capital investment in semiconductors, diminishing innovation in our industry and our economy. The fact is, engineers can create a profitable chip company with less than $2 million of total investment. I know because we have done it.

An exponential increase in mask costs is cited most often as the reason chips have become so expensive. Mask costs have risen from $100,000 to as much as $1-$3 million, but this factor alone cannot explain why some chips costs $100 million to develop.

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