The development of AI and 5g technology puts forward higher and higher requirements for chip architecture and software support. The chip design is more complex. The industry needs larger capacity FPGA to achieve efficient simulation and function verification. Chip industry is an industry with high investment, high risk and slow return. Unlike software that can be modified and iterated quickly, the iteration cycle of the chip will be very long. If the film has been released, it may take six months to correct a mistake and spend tens of millions of dollars to release it again.
On the one hand, chip manufacturers need to rely on FPGA for simulation and prototype design; On the other hand, the competition among different processor manufacturers such as CPU, GPU, FPGA and ASIC (application specific integrated circuit) in the AI market is becoming more and more fierce. Even chip giants such as Xilinx and Intel will simulate on FPGA before streaming when designing CPU and other chips, not to mention the AI special chips released by many AI algorithm companies in recent years.
With the current 5g progress and the promotion of AI, FPGA is expected to reach about $12.521 billion in 2025. In 2013, the global FPGA market size was US $4.563 billion, which increased to US $6.335 billion by 2018. In the global FPGA market, Xilinx and Altera have a total market share of about 90%. Xilinx’s revenue in the current quarter was US $850 million, a year-on-year increase of 24%; The net profit was 241 million US dollars, an increase of 27% over the same period last year.