Drastic Cost Reduction Realized By shifting from FPGA approach to ASICs
To explore the global business opportunities outside Japan, Company “B” has started re-study of the possible manufacturing costs for the industrial equipment across the board by increasing the total number of production. As part of such study, Company “B” approached the reduction of unit price by making ASICs due to the high price of FPGAs currently used for the equipment. Such cost reduction must be achieved under the condition of minimum level of the development expenses
- By taking from FPGA to ASICs approach, the unit price of production must be realized
- Development expenses must be saved up to zero or the minimum level（To bear the total amount of development expenses all at once is not allowed ）
- Change of other components presently used, like the printed circuit board is not allowed
- Obligation to supply the products for a long time, minimum eight (8) years
Based on substantial experiences and knowledge accumulated in the past, drastic cost reduction of the production unit is realized and the development expenses are allocated to the production unit price each for the first year instead of bearing the total amount of development expenses all at once. Thus from the second year or after allocation of the development expenses at the first year, about five percent (5%) cost saving is achieved when compared to that of FPGAs. What is more, change of other components like the printed circuits is not necessary because of the full pin compatibility.
Example#3 An Equipment Manufacturer Customer “C”
Development Cost Reduction by the Method of Merged Designs for Replacement ASIC
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