
Gal Gilat
Dealing with this argument my answer consists of 3 parts:
1. On the marketing aspect:
This exactly the trade-off between FPGA and ASIC, where on one side FPGA is flexible, but, on the other side our ASIC replacement is much cheaper. Note that, usually, companies, that distribute final products that goes to the market in quantities, don’t tend to perform HW change in those, because any HW change in the FPGA involves in huge operation dealing with customers. A better solution is selling another HW version. Therefore, considering final products as a hardened HW, our ASIC replacement is ideal.
2. On the Technology aspect:
On our solution process we add sea of floating spare logic of gates and flops. Once a mistake or a change is required, we offer an option to fix it by changing only the routing layers by an ECO editor and update the ASIC mask set. The routing layers are about 1/3 of total ASIC mask set, and payment is only for that which is low (for example in a process of 350nm it is about $20K), where the package is not changed and there is no need for having the whole design process again. But if it is a massive design change than it goes to a new design flow.
3. On the Business model aspect:
Since we don’t charge NRE, we provide a chip price for a defined quantity amount, as if you order an off-the-shelf chip with lead-time.
On our offering we provide 2 prices, 1st one is the chip price on the first order quantity and the 2nd one is the chip price on any next order quantity.
On the 1st order quantity – chip price is already 30%-40% cheaper than FPGA, and
on any next order quantity – chip price is 60%-70% cheaper than FPGA.
Meaning that:
Any order of a defined quantity that you do with us is worthy. You can stop ordering after any obligated order quantity with no penalty.
Of course as long as you perform “next orders” you gain more cost savings.
In case you have a design change you can go to a New Project performing for that again a “First order”.