Where is the difficulty in creating an ASIC? - page 2.

greyhawk

hero member

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Quote from: PachucoBro on April 04, 2013, 07:19:11 PM

Ok maybe you misunderstand... I am coming from a business point of view.

So these ASICs are actual custom chips that have to be created from schematics? In this digital age of computers and technology, you are saying that now other chip in the world can do similar operations as the chips Avalon and BFL have supposedly created from scratch?

Of course other chips can do the same operations. A 1000 times slower and less efficient.

PachucoBro

newbie

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Ok maybe you misunderstand... I am coming from a business point of view.

So these ASICs are actual custom chips that have to be created from schematics? In this digital age of computers and technology, you are saying that now other chip in the world can do similar operations as the chips Avalon and BFL have supposedly created from scratch?

It just seems there would be a much easier way to come up with a product besides creating the actual physical chip from scratch.

So the chip is the stumbling block then?

mitty

sr. member

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Designing an ASIC chip is very difficult simply because it requires a great deal of hardware design skill to design the chip, and a lot of money to actually produce it. (and actually a lot of money to design and simulate it as well, since the required software is extremely expensive)

Producing an ASIC chip requires a lot of money ($100k+?) because the initial setup (creating the mask, setting up all the equipment for that particular chip) is very expensive and the companies that produce the chips will only make them in huge batches due to this.

Producing an ASIC isn't a "do it yourself at home" type of project... that's what FPGAs are for. Wink

Obviously money can solve all of these problems (you can just hire someone to do all the work if you have enough money) but it's a huge risk considering the amount of time it'd take from conception to product (just look at the existing BTC ASIC companies) and Bitcoin's extreme volatility. There's the possibility of starting now and BTC being worthless by the time you've spent $100k on the project.

PachucoBro

newbie

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The money is obviously there. There is a market.

So why is everyone having to deal with one manufacturer who is shipping units direct from China and essentially has a monopoly on the market for now.

The other manufacturer has the smarts to know what needs to get done to make an ASIC work, but maybe not work as good as it should. Plus they must not have any logistic or business know how to be so far off on their delivery of the product as marketed and alienating their customers.

Money solves most problems... especially when they sold all these things pre-paid and got all that money upfront. I wish my industry couold get paid for goods and work BEFORE delivering it.

So where is the difficulty?

Why aren't more little startups coming up with ASICs made with jumper wires and shoeboxes? If they produce BTC... Mass produce it and SELL IT!

Topic: Where is the difficulty in creating an ASIC? - page 2. (Read 3285 times)