Market Insight


This makes them well-suited to applications such as AI acceleration, sensor integration in automotive systems and precision control in industrial automation. Tuned to the requirements of specifi c workloads, ASICs support improved energy effi ciency, predictable performance and seamless integration with wider system architectures. While ASICs are just one element of the broader semiconductor ecosystem, they highlight how the market is evolving beyond purely volume-driven growth.


According to industry projections, the ASIC market is expected to grow at a compound annual growth rate (CAGR) of 10.26 per cent between 2025 and 2033, (5)


driven largely by


developments in IoT and AI applications. This indicates that manufacturers are increasingly seeking solutions that are not only high performing but also tailored to specialised industrial needs. In this respect, ASICs complement standard chips, providing the fl exibility and precision needed to support the next generation of AI, mobility and smart manufacturing technologies.


Looking ahead


As 2026 begins, semiconductors are becoming even more deeply embedded in modern society, underpinning everything


from industrial productivity to consumer technologies. The momentum established in 2025 positions the industry for continued growth in demand, targeted


investment and a heightened emphasis on


application-specifi c innovation.


In the near term, growth will continue to be shaped by familiar forces:


expanding AI adoption, sustained automotive electrifi cation and increasing factory automation. However, looking beyond 2026, several emerging technologies may infl uence the industry’s longer-term trajectory. PwC, in its Semiconductor and beyond: global semiconductor industry outlook 2026


References: 1


report (6)


, identifi es several future frontiers, including advanced AI systems, driverless vehicles, humanoid robotics, quantum


computing and early-stage brain-computer interfaces.


Although most of these technologies remain many years away from widespread deployment, each will place


extraordinary demands on semiconductor design and manufacturing.


Meeting those demands will require higher compute density, ultra-low-latency processing, specialised sensing and new approaches to system integration. These requirements are already accelerating


progress in node scaling, heterogeneous integration and advanced packaging, and contributing to a broader shift toward application-specifi c chip design. At the same time, industry investments are already being made into next-generation materials, chiplet- based architectures, 3D integration and energy-effi cient computing, which are laying the groundwork for these breakthrough technologies.


In this sense, the trajectory of 2026 is not just about addressing immediate market requirements but about preparing the semiconductor ecosystem for a future in which compute, connectivity and intelligence are embedded across the global economy. Swindon Silicon Systems has four decades of experience in the design and supply of ASICs. If you are interested in the benefi ts of an ASIC for an industrial, automotive or aerospace project, get in touch today.


https://www.swindonsilicon.com/


2 https://www.semiconductors.org/global-semiconductor-sales-increase-15-8-from-q2-to-q3-month-to-month-sales-grow-7-0-in-september/ 3


https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2025/global-semiconductor-industry-outlook-2025.pdf https://www.reuters.com/world/china/industry-urges-pragmatic-eu-chips-act-20-to-close-gap-with-us-china-2025-11-18/


4 https://assets.publishing.service.gov.uk/media/68920a3366bdd4490c61098f/industrial_strategy_advanced_manufacturing_sector_plan_accessible.pdf 5 https://www.globalgrowthinsights.com/market-reports/application-specifi c-integrated-circuit-asic-market-104851 https://www.pwc.com/gx/en/industries/technology/pwc-semiconductor-and-beyond-2026-full-report.pdf


6


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Components in Electronics


December/January 2026 17


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