Growing demand for AI, autonomous driving, and high-performance computing
Market size expected to grow by more than 1 trillion won in 2026
The effects of acquiring a specialized company additionally l
Intel and AMD posted record-breaking quarterly sales this year due to strong sales of Field Programmable Gate Array (FPGA). FPGA is a semiconductor that helps to process programs efficiently, and its use is expanding. Growth is remarkable in new markets such as artificial intelligence (AI), autonomous driving, and high-performance computing. The FPGA market is expected to grow by more than 1 trillion won in 2026 with an average annual growth rate of 7.8%.
Intel reported $600 million in sales in the second quarter of this year thanks to the demand for FPGA. Their sales grew by 25% compared to the same period last year, and they managed to achieve their highest quarterly sales. The sale of FPGA have steadily grown in major markets such as communication devices, data centers, and cloud, and demand has also grown in new markets such as AI, high-performance computing, and automotives. Furthermore, Intel acquired Altera, a company specializing in FPGA, in the first half of 2015.
AMD also reported their highest sales in the second quarter thanks to the growth in FPGA sales. AMD is making FPGA through Xilinx. Xilinx reported $936 million in FPGA sales in the second quarter of last year. Although FPGA sales were not exclusively disclosed, more than 60% of their total sales were generated from FPGA. AMD finished acquiring Xilinx in the first quarter of this year. Combined with Xilinx's sales, AMD's revenue from their embedded business was $1.3 billion this year, a 2228% increase over the same period last year. This was a 48% point (P) growth compared to before the acquisition in the second quarter of last year.
In order to meet market demand, Intel and AMD are growing their FPGA businesses. They are developing 16nm FPGA products in response to demand for high-end products such as AI, autonomous driving, and cloud. Compared to existing processes, 16nm process products can significantly reduce power consumption.
According to market research firm, Market Research, FPGA are expected to grow from $620 million (around 800 billion won) in 2021 to $910 million (around 1.2 trillion won) in 2026. It is growing at an average annual rate of 7.8%, with high-end products under 16nm, such as AI, autonomous driving, and computing at the center.
<Table>FPGA Market Forecast <Source: Market Research>
By staff reporter Ji-woong Kim (jw0316@etnews.com)