Introduction
Arasan Chip Systems Inc. has built a reputation for offering high-performance IP solutions tailored to modern semiconductor design needs. With the growing complexity of Field Programmable Gate Arrays (FPGAs) in industries ranging from automotive to telecommunications, licensing schemes that adapt to specific project requirements are critical. Arasan’s FPGA pricing model reflects this need for flexibility, with costs tied directly to factors like volume and the utilization of intellectual property (IP) within the chip.
1. Volume-Based FPGA Pricing Structure
At Arasan, the primary determinant of FPGA pricing is the volume of chips being produced. This tiered structure ensures that smaller projects aren’t burdened with high upfront costs, while larger-scale productions benefit from reduced pricing per unit. The breakdown is as follows:
- Low-Volume Projects: For development or niche applications, where fewer FPGAs are needed, pricing is typically higher on a per-unit basis. This allows smaller teams or companies to still access Arasan’s IP without committing to large quantities.
- High-Volume Projects: As the production volume increases, the per-unit cost decreases significantly, allowing for more cost-effective scaling. This is particularly beneficial for industries producing millions of units, such as automotive or consumer electronics.
- Volume is measured based on how many instances of Arasan’s IP are used. There could be applications where multiple instances of Arasan IP are used on the same FPGA. Volume is measured not based on the number of FPGA’s implementing Arasan’s IP, but the actual number of Arasan IP uses and the number of anticipated product shipments.
The volume-based pricing approach allows Arasan to cater to a wide range of clients, from startups to large enterprises.
3. Customization Based on IP Usage
Beyond volume, Arasan customizes FPGA pricing based on how their IP is utilized within the project. This model is tailored to fit different use cases and deployment strategies, ensuring that customers only pay for what they need. Key factors that influence pricing include:
- Single-use IP Licensing: If the IP is only used in a single instance within the FPGA, pricing remains straightforward and competitive. This is common in simpler applications where the IP is used for a specific, isolated function.
- Multi-use IP Licensing: In cases where the same IP is used multiple times within a single chip, such as in multi-core processors or systems requiring repeated functionalities, the pricing structure adjusts accordingly. Arasan offers flexible terms, ensuring the cost-effectiveness of these more complex implementations.
4. Project-Specific Customization
Each project has unique requirements, and Arasan’s FPGA pricing model is built to accommodate this variability. Whether it’s for an experimental development phase or a long-term deployment, the following elements come into play:
- IP Reusability: When a customer plans to reuse Arasan’s IP across different projects or multiple instances within the same chip, pricing is customized to reflect these economies of scale. Reusability reduces the need for repeated licensing fees, making the overall development more cost-efficient.
- Complexity and Scope: For large-scale or highly complex projects, where FPGAs are a core component of the system architecture, pricing can be adjusted to account for additional technical support, customization, and IP integration services offered by Arasan.
5. Flexible Licensing Models
To further adapt to the diverse needs of their clients, Arasan offers multiple licensing options. These include:
- Perpetual Licensing: This option allows companies to pay once for lifetime usage of the IP, making it ideal for long-term, large-scale projects.
- Time-bound Licensing: For projects with limited durations, Arasan provides temporary licensing options, allowing access to their FPGA IP for a defined period, reducing upfront costs.
- Pay-per-Use Licensing: Some clients may opt for a pay-per-use model, especially if they are working on smaller or experimental projects where the IP is not used continuously.
These flexible licensing options ensure that customers of all sizes and scopes can find a suitable pricing plan.
6. Conclusion
Arasan Chip Systems Inc.’s FPGA pricing model stands out in the industry for its flexibility and customization. By tying costs to both volume and how their IP is used within a project, they offer a tailored approach that benefits companies from different sectors and of varying scales. Whether for a single-use case or a complex, multi-use FPGA design, Arasan ensures that clients receive value for their investment without overpaying for unnecessary features.
Arasan’s commitment to flexibility, scalability, and cost-efficiency positions them as a preferred partner for FPGA developers worldwide.
