111 Views

7 Reasons ASIC Projects Fail (and How to De-risk Early)

Most ASIC projects do not fail because the idea was bad.

 

They fail because risk was misunderstood, hidden, or postponed. By the time problems become visible, the project is already expensive, politically difficult to stop, and painful to fix.

 

The uncomfortable truth is that most ASIC failures are predictable. The same patterns appear again and again, across industries and company sizes.

 

This article outlines the seven most common reasons ASIC projects fail, and what experienced teams do early to reduce those risks.

 

1. Starting before the specification is stable enough

Many teams rush into ASIC because the pressure feels urgent. Cost, power, or performance problems on FPGA create momentum, and the project starts before requirements have settled.

 

ASIC tolerates change poorly. Early uncertainty multiplies downstream cost.

 

This does not mean specifications must be perfect. It means the core requirements must be stable.

 

Early de-risking actions include:

  • Locking mandatory interfaces and operating modes
  • Separating must-have features from nice-to-have
  • Defining what cannot change once physical design starts

 

Starting with unstable requirements is the single most common root cause of failure.

 

2. Underestimating verification effort

 

Verification is rarely the headline risk, but it is often the deciding one.

 

Teams that have shipped software or FPGA designs underestimate how much effort it takes to prove correctness across all corners, modes, and conditions.

 

Late verification discoveries are not just bugs. They are schedule and cost multipliers.

 

Experienced teams reduce this risk by:

  • Treating verification as a primary schedule driver
  • Defining “done” in terms of coverage, not code completion
  • Investing early in testbenches and regression infrastructure

 

If verification scope is unclear, failure is only a matter of time.

 

3. Choosing technology before understanding constraints

 

Node, package, and IP choices are often made too early, driven by habit, marketing, or fear of being left behind.

 

Once locked, these choices are hard to reverse.

 

Failures happen when:

  • A node is chosen that exceeds real needs
  • IP availability is assumed rather than validated
  • Package or test constraints are discovered late

 

De-risking means selecting technology after constraints are understood, not before.

 

4. Treating NRE as a single number

 

NRE becomes dangerous when it is treated as a fixed cost rather than a risk-weighted stack.

 

Projects fail when teams:

  • Anchor on optimistic NRE assumptions
  • Hide uncertainty to get approval
  • Discover late that verification, IP, or test scope is larger than expected

 

Experienced teams manage NRE by:

  • Talking in ranges and scenarios
  • Identifying what drives NRE up or down
  • Aligning scope decisions with budget tolerance

 

Surprises in NRE almost always trace back to unspoken assumptions.

 

5. Ignoring manufacturing, test, and bring-up early

 

ASIC failure is not limited to design.

 

Projects stall or fail during bring-up because manufacturing and test considerations were deferred until after tapeout.

 

Common late surprises include:

  • Test cost exceeding expectations
  • Yield learning taking longer than planned
  • Bring-up revealing architectural blind spots

 

Teams that succeed include manufacturing and test thinking early, even if details are refined later.

 

6. Unclear ownership and decision authority

 

ASIC projects expose organizational weaknesses quickly.

 

When ownership is unclear, decisions stall, trade-offs are revisited endlessly, and schedules slip without a clear reason.

 

Failure patterns include:

  • No single technical owner
  • No clear budget authority
  • Design changes driven by committee

 

Successful projects define ownership early and protect decision velocity.

 

7. Waiting too long to question the decision

 

The most expensive failure mode is commitment without checkpoints.

 

Teams hesitate to re-evaluate because stopping feels like admitting failure. In reality, the ability to re-assess early is a strength, not a weakness.

 

Experienced teams:

  • Use stage-gates before full commitment
  • Re-evaluate when assumptions change
  • Accept “not yet” as a valid outcome

 

ASIC projects fail most often when momentum replaces judgment.

 

How experienced teams de-risk early

 

Across successful projects, the pattern is consistent.

 

Teams reduce risk by:

  • Making the ASIC decision explicit
  • Identifying unknowns early
  • Using feasibility and readiness checks before commitment
  • Treating uncertainty as input, not embarrassment

 

The goal is not to eliminate risk, but to understand it before it becomes irreversible.

 

What to do next

 

If several of these failure modes feel familiar, that does not mean ASIC is wrong for your product.

 

It usually means the timing or assumptions need clarification.

 

Before committing further, it helps to step back and answer a simple question: does ASIC make sense for this product now, later, or not at all?

 

 

Next step

Run the 2-minute ASIC or Not? Decision Wizard to get a clear, non-sales recommendation and identify which risks matter most for your situation.

👉 /asic-or-not

Recent Stories


Logo Image
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.